The Competitiveness and Foreign Direct Investment

FDI attraction is crucial for developing countries, as it drives economic growth and industrialization. This study examines the impact of provincial competitiveness on FDI inflows in key northern provinces of Vietnam, including Hanoi, Bac Ninh, Hung Yen, Hai Duong, Hai Phong, Quang Ninh, and Vinh Phuc. Using panel data regression analysis, the study finds that administrative time costs and business support services negatively affect FDI inflows. This suggests that time costs (Evaluation administrative burdens and the friendliness of government procedures) and inadequate business support deter foreign investors. Other factors were not found to have a statistically significant impact. These findings highlight the need for policy improvements, particularly in streamlining administrative processes and enhancing government support for businesses. The study contributes to the theoretical understanding of FDI determinants while offering practical recommendations for policymakers to strengthen provincial competitiveness and attract more foreign investment to northern Vietnam’s key economic zones.