Determinants of Investors’ Satisfaction at Industrial Zones in the Central Region of Vietnam

Abstract

Industrial zones (IZs) play an important role in the development of Vietnam during the last decades. This study analyzes the factors affecting the level of investor's satisfaction at IZs in the central region of Vietnam based on the data collected from 343 managers/directors who are investing at the IZs in the three selected provinces of the central region of Vietnam namely Quang Binh, Quang Tri and Thua Thien Hue. By employing PLS-SEM approach to analyse data, the results of this study revealed that four factors that influence the investors' satifaction in IZs are arranged sequentially, from high to low as follows: infrastructure system of IZs; responsiveness of local government; preferential policies and oprating cost. The result implicates that in order to improve the satisfaction of investors, local government should focus on the development of infrastructure system in IZs and pay more attention on the interaction between investors and local authorities.