ANALYSIS OF FACTORS AFFECTING THE INVESTMENT DECISION OF NON-STATE ENTERPRISES IN THAI NGUYEN PROVINCE

Abstract

This study aims to analyze the factors affecting the investment decisions of non-state enterprises in Thai Nguyen province in order to propose policy solutions to encourage investment in this business sector. With the data of 350 enterprises surveyed, the methods of informative collection, processing and analysis, two qualitative analysis methods (in-depth interviews) were appied to build and develope a scale of influenced factors. Also, quantitative methods, exploratory factor analysis (EFA), and multivariate regression models were used to evaluate the influence of factors affecting the investment decisions of SOEs investing in the province. The results showed that the factors affecting investment decisions of SOEs are: (i) Market; (ii) Preferential policies; (iii) Quality of local governance institutions; (iv) Expenses; (v) Infrastructure; (vi) Human resources; (vii) Communication. In which all factors have a positive influence on investment decisions, only cost factor has a negative influence on the investment decisions.