Application of IPMA in modelling the investment attraction in Ho Chi Minh City

Huỳnh Dang Bich Vy * , Le Khoa Nguyen , & Le Giang Phuong Binh

* Correspondence: Huỳnh Dang Bich Vy (email: vy.hdb@ou.edu.vn)

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Received: 16 Nov 2022
Revised: 24 Feb 2023
Accepted: 08 Mar 2023
Published: 06 Jun 2023
DOI: 10.58810/vhujs.9.1.2023.365
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Huỳnh, V. Đặng B., Lê, N. K., & Lê, B. G. P. (2023). Application of IPMA in modelling the investment attraction in Ho Chi Minh City. Van Hien University Journal of Science 9(1), 1-16.
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Volume 9 - Issue 1 (2023)
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Abstract

Investment attraction plays an extremely important role for each location because a business-friendly environment creates job opportunities, reduces unemployment, increases income levels and welfare for local people, thereby determining economic growth and development. The study conducted a survey of 100 enterprises in Ho Chi Minh City (HCMC). Partial least squares structural equation modeling (PLS-SEM) was performed to simultaneously evaluate the measurement model and the structural model. Research results confirmed the traditional role of infrastructure and human resources in attracting investment to the location. In addition, the study also provides empirical evidence that public policy and services, working environment and import attraction have no statistically significant impact on investment attraction in HCMC. Besides, Importance-Performance Map Analysis (IPMA) results showed that the performance of infrastructure and human resources in HCMC was only in the range of 50-75%. This raises concerns for policymakers in prioritizing the further improvement of two factors: infrastructure and human resources in HCMC.
Keywords: PLS-SEM, IPMA, investment attraction

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