environment factors for foreign direct investment for american business corporation in three main commercial centers of vietnam

THAI NGUYEN UNIVERSITY
Socialist Republic of Vietnam
SOUTHERN LUZON STATE UNIVERSITY
Republic of the Philippines
NGUYEN ANH TUAN
(English name: Raphaen)
Doctoral Dissertation
“ENVIRONMENT FACTORS FOR FOREIGN DIRECT INVESTMENT FOR AMERICAN
BUSINESS CORPORATION IN THREE MAIN COMMERCIAL CENTERS OF VIETNAM”
Scientific supervisor: Associ. Prof. Do Anh Tai
Hanoi – 2013
ii
ENVIRONMENT FACTORS FOR FOREIGN DIRECT INVESTMENT FOR AMERICAN
BUSINESS CORPORATION IN THREE MAIN COMMERCIAL CENTERS OF VIETNAM
A Doctoral Dissertation
Presented to the Faculty of the
Graduate School of Southern Luzon State University
in Collaboration With Thai Nguyen University
In Partial Fulfilment
of the Requirements for the Degree of
Doctor in Business Administration
NGUYEN ANH TUAN
May 2013
Nguyen Anh Tuan Raphaen
Thai Nguyen University iii Southern Luzon State University
ACKNOWLEDGMENT
This research was a process of learning that asked for the involvement of
individuals, companies and institutions. During my research period, I received
unconditional co-operation from many individuals/organizations, and their support
was a key factor in successfully completing the Dissertation. I greatly appreciate the
contribution of everyone involved and I apologize to those I do not mention by name.

First of all, I am especially grateful to my supervisors, Professor Do Anh Tai,
who provided me with valuable guidance and comments throughout the research
period. I also thank my supervisor for giving me the opportunity to work in the area of
my interest. I would also like to thank the members of the reading for reading the
manuscript and for providing me with constructive comments.
During the period of data collection, I visited both the Vietnam and US
institutions. To begin with, I would like to express my gratitude to the following
members of the institutions for their willingness to be interviewed and also for
spending time and effort in filling questionnaires: Departments of Planning and
Investment (Hanoi, Ho Chi Minh city, Da Nang); Foreign Investment Agency –
Ministry of Planning and Investment; I extend especial thanks to the board of Rectors
of Hanoi University of Industry for permitting me to follow the doctoral course and
great favorable conditions for me to accomplish this doctoral course. I would also like
to express my gratitude to Thai Nguyen University, Southern Luzon State University
and their professors for organization, support and help during the doctoral course.
Nguyen Anh Tuan Raphaen
Thai Nguyen University iv Southern Luzon State University
I wish to express my sincere thanks to my families for their continual
encouragement, love, and prayers for my progress and success. Finally, I am greatly
indebted to my wife for her love, moral support, understanding and great
encouragement.
Hanoi, 8
th
June 2013
Nguyen Anh Tuan
Nguyen Anh Tuan Raphaen
Thai Nguyen University v Southern Luzon State University
DEED OF DECLARATION
I, Tuan NGUYEN ANH., hereby submit my Dissertation for oral examination,
entitled “Environment factors for foreign direct investment for American

business corporations in three main commercial ceters of Vietnam””, truthfully
declare that the said paper is a product of my original research investigation. The data
presented in the paper have clear origin.
PhD candidate
Nguyen Anh Tuan
Nguyen Anh Tuan Raphaen
Thai Nguyen University vi Southern Luzon State University
TABLE OF CONTENTS
DEED OF DECLARATION V
LIST OF TABLES XIV
LIST OF TABLES XIV
LIST OF FIGURES XVI
APPROVAL SHEET XX
CHAPTER 1 21
INTRODUCTION 21
Backgroundof theStudy 21
StatementoftheProblem 22
Objectives 24
Hypothesis 25
Scopeandlimitationofstudy 25
Significanceofstudy 26
Definitionterms 27
CHAPTER 2 32
REVIEWOFLITERATUREANDRELATEDSTUDIES 32
1. FOREINDIRECTINVESTMENT(FDI)THEORY 32
1.1. Concept and features 32
1.1.1. Concept 32
1.1.2. Features 33
1.2. FDI classification 35
1.2.1. Joint – venture company 35

1.2.2. Enterprise with 100% foreign capital 36
1.2.3. Business cooperation contract 37
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Thai Nguyen University vii Southern Luzon State University
1.2.3. Other forms of FDI 37
1.3. Roles of foreign direct investment 40
1.3.1. Impact of FDI on investors and investor’s country 40
1.3.2. Impact of FDI on investment receiving country 41
2. OVERVIEW OF INVESTMENT ENVIROMENT 46
2.1. Concept 46
2.2. Characteristics of the investment environment 47
2.2.1. Synthetic feature 48
2.2.2. Mobile (dynamic) feature 48
2.2.3. Openness feature 48
2.2.4. Systematic feature 49
2.3. Classification of investment environment 50
2.3.1. Classification by national management function 50
2.3.2. Classification by channels of factors affecting investment activity 50
2.3.3. Classification by constituent elements 50
2.3.4. Classification by scopes 50
2.3.5. Classification by phases of formation and investment activities 51
2.3.6. Classification by causes for capital flows 51
3. IMPACT OF INVESTEMENT ENVIRONMENT ON FDI ATTRATION 51
3.1. Factors from investment environment in the host country countries 51
3.1.1. Natural environment 51
3.1.2. Politic environment 52
3.1.3. Law and policy environment 53
3.1.4. Economical environment 54
3.2. Factors from invironment in investor’s countries 56
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Thai Nguyen University viii Southern Luzon State University
3.2.1. Macroeconomic policy 56
3.2.2. International legal for oversea investment 57
3.2.3. Economic, scientific and technological potential 58
3.3. Factors from international investment environment 59
3.3.1. General trend of cooperation between regions and countries 59
3.3.2. General trend of regional lingkage and globalization 59
3.3.3. Establishment and development of transnational companies 60
4. ATTRACTING FDI EXPERIENCE WORLD-WIDE 62
4.1. Attracting FDI experience of some countries 62
4.1.1. China 62
4.1.2. Malaysia 64
4.1.3. Thailand 66
4.1.4. Singapore 67
4.2. Experience for Vietnam 68
4.3. Role of FDI on socio-economic development in Vietnam 70
4.3.1. Enhancement of investment capital 70
4.3.2. Promotion of economic structure transfer, work creation for employee 70
4.3.4. Contribution of infrastructure and techniques forming for the
industrialization and modernization process 71
4.3.5. Contribution of national budget increase 72
5. REVIEW OF RELATED STUDIES 72
6. CONCEPTUAL FRAMEWORK 75
CHAPTER 3 77
METHODOLOGY 77
1. RESEARCH DESIGN 77
Nguyen Anh Tuan Raphaen
Thai Nguyen University ix Southern Luzon State University
2. LOCATION OF THE STUDY 79
4. SAMPLE SIZE AND SAMPLING TECHNIQUE 81

5. DATA COLLECTION PROCEDURE 83
Figure 2. Data collection process 85
6. STATISTICAL ANALYSIS 86
CHAPTER 4 87
RESESULT AND FINDINGS 87
1. RESEARCH BACKGROUND - AN OVERVIEW OF FDI ENVIRONMENT
IN VIETNAM AND THE UNITED STATE 87
1.1. General investment environment of Vietnam 87
1.1.1. Politic environment 87
1.1.2. Geographic and Infrastructure environment 89
1.1.3. Economical and Financial Environment 92
1.1.4. Institutional and Administrative Management environment 95
1.1.5. Labor environment 96
1.2. Trend of FDI attraction in Vietnam 98
1.2.1. Economic growth forecast for Vietnam 98
1.2.2. Comments about FDI from the U.S in Vietnam during 2013 – 2020 99
1.3. POLICIES OF THE U.S ON ABROAD INVESTMENT 102
1.3.1. Summary of the United States 102
1.3.2. Practice of FDI from the US in Vietnam 110
2. RESULTS OF SURVEY ON FDI ENVIRONMENT IN VIETNAM 119
2.1. Foreign Enterprise’s Assessement 120
2.1.1. Process of receiving a project under OSS (One-Stop-Shopping) mechanism
120
Nguyen Anh Tuan Raphaen
Thai Nguyen University x Southern Luzon State University
2.1.2. Infrastructure 121
2.1.3. Investment supporting policy 121
2.1.4. Rapid work clearance 122
2.1.5. Ensurement of supplying raw materials, supporting industries 122
2.1.6. Review of foreign investors about the attractiveness for FDI 123

2.2. The State administrator’s assessement 125
2.2.1. Politic evironment 125
2.2.2. Institutional and management environment 126
2.2.3. Geographic and infrastructure environment 127
2.3. Foreign investor’s assessement 128
2.3.1 Evaluating the reliability of statistic data 128
2.3.2. Descriptive statistics 134
2.3.3. ANOVA analysis 135
2.3.4. Hypothesis Testing 139
2.3.5. Factor analysis on regression model 142
CHAPTER 5 147
CONCLUTIONS AND RECOMMENDATIONS 147
1. CONCLUSIONS 147
2. RECOMMENDATION FOR ATTRACTING THE U.S FDI 150
2.1 Shorterm solutions 151
2.1.1. Politic environment 151
2.1.2. Institutional- Administrative Management 151
2.1.3. Geographic- Infrastructure 153
2.1.4. Economic- Finance 155
2.1.5. Solutions related to human resources 159
Nguyen Anh Tuan Raphaen
Thai Nguyen University xi Southern Luzon State University
2.2. Longterm solutions 160
2.2.1. Promote the development of supporting industries 160
2.2.2. Continuing negotiation, conclusion and implementation of the Trans-Pacific
Partnership Agreement (TPP) 161
2.2.3. Develop specific policies to attract capital and technology from the MNC 162
2.2.4. Strengthening information and communication, policy and advocacy for the
country to invest overseas 163
Vietnamese references 166

English references 168
Websites 168
REFERENCES - 216 -
Nguyen Anh Tuan Raphaen
Thai Nguyen University xii Southern Luzon State University
ABSTRACT
During the past 25 years, FDI in Vietnam including FDI from the United
States has been continuously expanding and developing. It becomes an important part
of the economy. To get these positive results, Vietnam has been constantly improving
the investment environment in order to create attractive high competitive investment
environment.
As a strongest economy of the world, the U.S. FDI projects are typically large-
scale associated with source technology, high technology. Since the reestablishment
Vietnam - U.S. diplomatic relation, FDI from the United States in Vietnam plays an
important contribution to the process of industrialization and modernization of the
country, improves economical, political and military roles of Vietnam. However, US
FDI in Vietnam is incommensurable with advantageous potential of two countries. In
order to attract efficiently the US FDI, Vietnam requires more improvement of
investment environment which is more and more increasingly attractive and
competitive compared with other countries in the region.
A survey on 63 US investors, 30 state management agencies and 99 FDI
enterprises was carried out in three main commercial centers of Vietnam (Hanoi, Da
Nang, Ho Chi Minh city) in order to find advantage and/or disadvantage of sub-
factors of investment environment in Vietnam, then providing some prospective
solutions for investment environment improvement in coming years. Results shows
that Vietnam need to improve policies that ensure more investor’s right and also
policies that petitioner all corruption phenomenon and policies that has no distinction
between domestic and foreign investors. Vietnam also has to improve traffic, storage
system, harbor… In term of labor quality, it is needed to create more strict linkage
Nguyen Anh Tuan Raphaen

Thai Nguyen University xiii Southern Luzon State University
between vocational training centers, schools with enterprises; these training centers
must build training programs and graduated standards corresponding to typical
requires of enterprises, especially it must focus on professional awareness of labors. It
also needed to expand training linkage with international high quality training
institutions in order to enhance training quality and there therefore labor quality that
approaches international standard. On the other hand, Vietnam should better improve
economical and financial policies such as stable currency exchange rates… In
summary, Vietnam needs to enhance synchronously factors of investment
environment in accordance with regional and international commands.
Nguyen Anh Tuan Raphaen
Thai Nguyen University xiv Southern Luzon State University
LIST OF TABLES
Table 1. Factors affecting the FDI 80
Table 2. Number of surveyed samples 82
Table 3. Comparation of transportation cost 91
Table 4. GDP growth in Southeast Asian countries 94
Table 5. Forecast of GDP of some Asia countries in coming years 98
Table 6. U.S. FDI structure by investment form 112
Table 7. Assessment of foreign enterprise on OSS mechanism. 120
Table 8. Assessment of foreign enterprise on infrastructure quality 121
Table 9. Assessment of foreign enterprise on investment supporting policy 121
Table 10. Assessment of foreign enterprise on work clearance activity 122
Table 11. Assessment of foreign enterprise on raw material supply ensurement
123
Table 12. Assessment of foreign enterprise on the attractiveness for FDI 123
Table 13. Opinion of state administrator on politic environment 125
Table 14. Cronbach’alpha of Political environment 129
Table 15. Cronbach’alpha of Institutional and management environment 129
Table 16. Cronbach’alpha of Infrastructure and Geographic environment 131

Table 17. Cronbach’alpha of Economical and Financial environment 132
Table 18. Cronbach’ Alpha of Labor environment 133
Table 19. Cronbach’ Alpha of Investor's determination 133
Table 20. Illustration method of calculating group variables via mean value 134
Table 21. Mean value of statistic variables 135
Table 22. Post Hoc Tests on Political environment 136
Nguyen Anh Tuan Raphaen
Thai Nguyen University xv Southern Luzon State University
Table 23. Post Hoc Tests on Institutional and management environment 136
Table 24. Post Hoc Tests on Infrastructure and Geographic 137
Table 25. Post Hoc Tests on Economical and financial environment 138
Table 26. Post Hoc Tests on labor environment 139
Table 27. Pearson correlation coefficient between variables 140
Table 28. Statistics of developed regression models 143
Nguyen Anh Tuan Raphaen
Thai Nguyen University xvi Southern Luzon State University
LIST OF FIGURES
Figure 1. Framework of the research 76
Figure 2. Data collection process 85
Figure 3. Structure of U.S. FDI among G7 countries 108
Figure 4. FDI from the United States in Vietnam during the period 1988-2012111
Figure 5. U.S. FDI structure by investment form 114
Figure 6. The U.S. FDI structure by investment sector 116
Figure 7: The US FDI structure by region (USD/Province) 118
Figure 8. The U.S. FDI position in the FDI structure in Vietnam (USD/ State) 119
Nguyen Anh Tuan Raphaen
Thai Nguyen University xvii Southern Luzon State
University
LIST OF APPENDIES
APPENDIX 1. BIBLIOGRAPHY 166

APPENDIX 2. SURVEY QUESTIONNAIRE 170
APPENDIX 3. CURRICULUM VITAE - 188 -
APPENDIX 4. PUBLICATIONS RELATED TO THE DISSERTATION 193 -
APPENDIX 5. ANOVA ANALYSIS - 194 -
APPENDIX 6. POST HOC TESTS - 196 -
APPENDIX 7. LINEAR REGRESSION 198 -
APPENDIX 8. THE US INVESTORS' DETERMINATION - 203 -
APPENDIX 9. DIRECT INVESTMENT ABROAD BY THE UNITED STATES
AND OTHER G7 COUNTRIES 204 -
APPENDIX 10. TOTAL FDI FROM THE UNITED STATES IN VIETNAM -
PERIOD 1988-2012 - 205 -
APPENDIX 11. FDI FROM THE UNITED STATES IN VIETNAM BY
INVESTMENT FORM - PERIOD 1988 - 2011. - 207 -
APPENDIX 12. FDI FROM THE UNITED STATES IN VIETNAM BY
INVESTMENT SECTOR - PERIOD 1988 – 2011. 208 -
APPENDIX 13. FDI FROM THE UNITED STATES IN VIETNAM BY
PROVINCES - PERIOD 1988 – 2011 - 210 -
APPENDIX 14. FDI IN VIETNAM BY INVESTING COUNTRIES - PERIOD
1988 – 2012 213 -
Nguyen Anh Tuan Raphaen
Thai Nguyen University xviii Southern Luzon State
University
LIST OF ABBREVIATIONS
SYMBOL
Explaination
AFTA
ASEAN Free Trade Area
ASEAN
Association of Southeast Asian Nations
BCC

Business Cooperation Contract
BOT
Build – Operation – Transfer Contract
BT
Build – Transfer Contract
BTO
Build – Transfer – Operation Contract
EU
European Union
FDI
Foreign Direct Investment
ICOR
Incremental Capital - Output Rate
IMF
International Monetary Fund
KCN, KKT, KCX
Industrial zone, Economic zone, Processing zone for export
NEU
National Economic University
MNCs
Multinational Companies
MPI
The Ministry of Plan and Investment (Vietnam)
NSNN
National budget
ODA
Official Development Assistant
OECD
Organization for Economic Co-operation and Development
PCI

Provincial Competitiveness index
PPP
Public Private Partnerships
R&D
Reserch and Development
TNCs
Transnational Companies
UBND
People's Committees
Nguyen Anh Tuan Raphaen
Thai Nguyen University xix Southern Luzon State University
UNCTAD
United Nations Conference on Trade and Development
USD
U.S Dollars
VCCI
Chamber of Commerce and Industry of Vietnam
VĐK
Registered capital
VND
Vietnam currency (Dong)
VTH
Implement capital
WB
World Bank
WTO
World Trade Organization
Nguyen Anh Tuan Raphaen
Thai Nguyen University xx Southern Luzon State University
APPROVAL SHEET

This Dissertation , entitled “ENVIRONMENT FACTORS FOR FOREIGN
DIRECT INVESTMENT FOR AMERICAN BUSINESS CORPORATION IN
THREE MAIN COMMERCIAL CENTERS OF VIETNAM”, prepared and
submitted by Nguyen Anh Tuan in partial fulfillment of the requirements for the
degree of Doctor in Business Administration, has been examined and recommended
for acceptance and approval for FINAL EXAMINATION.
DO ANH TAI, PhD
Adviser
Approved by the Committee on Oral Examination with a grade of PASSED on ….
2013
Dr……………………… ………………… Member
Dr……………………… ………………… Member
Dr……………………… ………………… Member
Dr……………………… ………………… Chairman
Accepted in partial fulfillment of the requirements for the degree of Doctor in
Business Administration.
THAI NGUYEN UNIVERSITY SOUTHERN LUZON STATE UNIVERSITY
Dean Dean
Nguyen Anh Tuan Raphaen
Thai Nguyen University 21 Southern Luzon State University
CHAPTER 1
INTRODUCTION
Backgroundof theStudy
Foreign direct investment (FDI) is a popular concept that a host country have
imvestement from foreign companies to produce goods or supply service in its national
boundary. The FDI is significant capital and technical source of economic growth. This
is also characteristic clearly of globalization. Beside that FDI is not only providing of
investment capital and technology, it is also providing of managerial and technological
skills, job creation, infrastructure upgrading for host country. It is proved in practice
that an important that, an economic isolation is closed road, especially in circumstance

that trend of globalization and integrate of international economic . In order to attract
foreign investors, especially numerous FDI inflows from Multinational Enterprises
(MNEs) and big economies, many Governments have been developing and changing
their traditional or transitional economies by designing and executed relevant policies to
open environment for FDI.
In Vietnam, FDI is an important source to help restructure and increase the
competitiveness of the economy since the middle of 1980s when Vietnam began to
apply new ecomomic mechanism called as “Doi Moi” and known as “open-door
policy”. FDI has become an important factor of economy of Vietnam in the context of
deep integration with the world economy and globalization trends. During period of 36
years in attracting foreign investment Vietnam have gained significant success. In this
context, Vietnam has launched several measures, open-door policy change, rapidly
improving environment to attract foreign investment in order to face to the decline of
inflows of foreign direct investment and new developments of the globalization process.
Nguyen Anh Tuan Raphaen
Thai Nguyen University 22 Southern Luzon State University
The change in financing and banking policy, labor force administration, especially
impoving geographical and infrastructure factors in the direction of increasing favor
for foreign investors by the Vietnam Government, have been considered as an urgent
measure to increase the attractiveness for FDI. Despite achieving certain results, it is
said that Vietnam did not make best use of opportunities to attract FDI and not gain the
maximum benefits that foreign direct investment can bring, especially the FDI inflow
of investors from the major economies such as the U.S., Europe and Japan. Besides, the
application of geographical and infrastructure advantage in attracting foreign direct
investment in Vietnam, especially finacial and banking elements are limited, and not yet
achieved as desired target.
StatementoftheProblem
Foreign direct investment (FDI) is one of remarkable activities in the
international economics integration and globalization for many decades. Attracting
FDI is important for economic development not only for poor, development countries

but also developed countries.
Today, almost countries promote actively FDI attractiveness to provide
employment, income increase or to take high and innovational technologies,
management skills. FDI also helps to penetrate the market of other countries. Vietnam
is also in the trend and needs to improve the quality of FDI projects by creating
favorable policies for hi-tech projects and those which suit the country’s socio-
economic development strategy.
Vietnam achieved a long progress for creating propitious investment
environment since 1987 when Investment Law established. Foreign Direct Investment
plays an important role in the Vietnam economy (25% total social investment);
stimulating and improving efficient use of domestic resources, increasing exports
Nguyen Anh Tuan Raphaen
Thai Nguyen University 23 Southern Luzon State University
(exports in 2012 in national investment sector reached 72.2 billion U.S. dollars,
accounting for 55.9% of total exports in 2012) . FDI has contributed significantly to
national revenues (USD 14.2 billion in the period from 2001 to 2010 and contributes
about $ 3.7 billion 2012), contributing to create 2 million jobs directly and around 3-4
million jobs indirectly
1
. Until 31/12/2011, there are 14,552 FDI projects with a
registered capital of more than 210.5 billion USD. In which, FDI from USA has 648
projects and reached 10.507 billion USD, ranking the 7
th
of 100 countries and regions
investing into Vietnam
2
. This illustrated that USA is one of the top-ranking investors of
Vietnam.
However, FDI capital from USA in Vietnam is not in accordance with available
economic condition of two countries and also comparative advantage of each.

Moreover, while attracting FDI from USA, Vietnam has good opportunities for
receiving hi-tech project, innovative management experiences of MNC that suit to
policies’ selective FDI attraction of Vietnamese government. That’s motive to improve
investment environment to for attract direct investment into Vietnam from United
States in some coming years.
To attract FDI into Vietnam from the United States associated with original
technology transfer, modern technology, in the context of increasing competition for
FDI attraction and especially in the context of the economy of many countries in the
world is in crisis, recession that requires Vietnam to actively improve the investment
environment to create a favorable investment environment for FDI activities. However,
the investment environment in Vietnam has still some negative barriers for attracting
and using FDI as weak economic infrastructure, appropriate and qualified professional
human resources, complex administrative procedures
Nguyen Anh Tuan Raphaen
Thai Nguyen University 24 Southern Luzon State University
Therefore, research is needed to find appropriate solutions to improve the
investment environment to attract and effective use of FDI, particularly FDI attraction
associated with original technology transfer, advanced management experience from
the U.S. MNCs for growth and sustainable development objectives. To help achieve the
mentioned objectives above, it is needed to study the theme: “Environment factors for
foreign direct investment for American business corporation in three main
commercial centers of Vietnam”. This study shall answer for following questions:
1. How does political environment of Vietnam affects to the US. FDI attraction?
2. How does governmental administrative environment of Vietnam affects to the
US. FDI attraction ?
3. How does infrastructure- location factor of Vietnam affects to the US. FDI
attraction ?
4. How does economic and financial mechanism of Vietnam affects to the US.
FDI attraction ?
5. How does labor factor of Vietnam affect to the US. FDI attraction ?

Objectives
The aim of the Dissertation was to assess the situation of FDI attraction from
the United States into Vietnam, then to indicate existing shortcoming, in particularly
investment environment limitation that interfere U.S FDI flows into Vietnam and
finally to provide solutions to further improvement of investment environment for U.S
FDI attraction and disbursement process in Vietnam. Thus, the Dissertation has some
tasks to research following objectives:
1. To determine how political environment of Vietnam affect to the US. FDI
attraction;
Nguyen Anh Tuan Raphaen
Thai Nguyen University 25 Southern Luzon State University
2. To determine how governmental administrative environment of Vietnam
affect to the US. FDI attraction;
3. To determine how infrastructure- location factor of Vietnam affects to the
US. FDI attraction;
4. To determine how economic and financial mechanism of Vietnam affects to
the US. FDI attraction;
5. To determine how labor factor of Vietnam affect to the US. FDI attraction.
Hypothesis
It is difficult to reckon up and control how may percent of FDI effectuated
from total FDI registered in the context of FDI changed between investment forms
and investment countries. While collecting and analyzing FDI data in Vietnam, author
provides thus some hypothesis as follow:
H1. Stable political environment is factor to attract more FDI
H2. Convenient, simple and prompt administrative procedure in registering
shall attract more foreign investors
H3. Advantage of location is factor to determine FDI
H4. Openness of economic and financial mechanism is incentive for FDI
H5. High qualification and skill labor force is factor to attract FDI in host
country

In order to research above factor relationship the author also assumed that total
registered FDI is equal to total effectuate FDI and there is no conversion between
investment form and no transfer of FDI projects between investment countries or
regions.
Scopeandlimitationofstudy