Xuan Huynh Nguyen

By Nguyen Xuan Huynh and Hoang Dinh Phi

The Vietnamese government has been focused on promoting supporting industries, which may provide a “key” solution for sustained development and thereby improve the national welfare. Coincidentally, Vietnam is also focused on an optimal strategy to attract foreign direct investment (FDI that develops a strategy for supporting industries). However, these results have not been achieved due to the weaknesses of low FDI flow, the limited number of capital projects, and the inclusion of smaller enterprises with lower technology into the mix. This negative situation begs the question as to what might be the best strategy for attracting FDI that developmentally supports the Vietnamese industry. As an intended remedy, this inquiry establishes an analytical, hierarchy framework beneficial to the Vietnamese government on a best strategic method for attracting FDI to develop supporting local industries. This study utilizes fuzzy preference relations to improve the decision-making process to be both consistent and effective. The analytical results demonstrate that institutional policies, domestic supply capacity, human resources, and technological development, coupled with innovation, are the key criteria to be considered when selecting a strategy that attracts regular FDI. Furthermore, analytical results presented in this work demonstrate that the best strategies for attracting FDI to Vietnam are those that motivate sustainable economic growth on an ongoing basis.

Part of the book: Foreign Direct Investment Perspective through Foreign Direct Divestment