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Abstract
This article analyzes the factors influencing foreign direct investment attraction in the Southeast region of Vietnam during the 2011–2023 period. Employing a panel data regression model with Generalized Least Squares estimation, the study identifies several pull factors for FDI inflows. Key findings reveal that human capital factors, including the labor force participation rate and labor productivity, significantly contribute to FDI attraction. Market size, proxied by population density, generates economies of scale advantages for investors. However, excessive agglomeration of enterprises beyond infrastructure capacity is found to hinder FDI inflows. Additionally, the government’s role in institutional improvements, enhancing the investment environment, and allocating budgetary expenditures positively impacts FDI attraction. Based on these findings, the article proposes policy recommendations to strengthen long-term FDI inflows into the region.