Factors Influencing Foreign Direct Investment Inflows into Vietnam from 2013 to 2022: Applying the Gravity Model

Factors Influencing Foreign Direct Investment Inflows into Vietnam from 2013 to 2022: Applying the Gravity Model

Huỳnh Huy

Authors

Keywords:

FDI, Gravity Model, Corruption, Free Trade Agreements, Vietnam

Abstract

The objective of this study is to identify the factors influencing foreign direct investment (FDI) inflows to Vietnam from 2013 to 2022. Using the gravity model and FGLS regression based on data from 10 key FDI partner countries, the results reveal that geographic distance, corruption levels, and free trade agreements (FTA) significantly impact FDI inflows into Vietnam. The study provides implications for policymakers to improve the investment environment and enhance Vietnam's FDI attraction capabilities.

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