Effects of labor force on the FDI attraction to the South-East Vietnam

Abstract

The South-east Vietnam is currently the most dynamic economic region in Vietnam. Provinces in the region are always highly rated in attracting foreign direct investment in Vietnam. The study aims to investigate the role of labor force in attracting foreign direct investment to the region in the period 1997 -2014. By using random effect model for panel data, we find that the labor force measured by the determinants such as the number of labor, the rate of migrant labor, the rate of immigrant labor, the proportion of labor in the industrial sector, the proportion of labor in the service sector and the average value of industrial production have positive impacts on foreign direct investment attraction. Furthemore, the factors of labor cost and rate of educated labor force are not statistically significant in attracting foreign direct investment.

Keywords

• lực lượng lao động
• thu hút fdi
• đông nam bộ