Factors Affecting the Green Economy Based on the Attraction of Foreign Direct Investment in the Context of Climate Change, Vietnam

Abstract

The complicated developments of the Covid-19 pandemic have made enterprises' investment and business cooperation activities in general, and foreign direct investment (FDI) enterprises face many challenges and risks in particular. In Vietnam, foreign direct investment plays a vital role in socio-economic development. Realized FDI capital increased on average annually and accounted for over 25% of the total recognized investment capital of the whole society;the average GDP share of the foreign-invested sector accounts for more than 20% annually in the total GDP of the whole economy;attracting nearly 5 million workers. However, Vietnam has faced environmental and social consequences of developing the brown economy. Countries have gradually transitioned to a green economy - an economy that cares about happiness, social justice, and the environment in addition to other benefits and economic goals. Vietnam is no exception to this trend. Thus, the article's purpose is to analyze the key factors affecting the attraction of foreign direct investment (FDI) for the green economy of Vietnam and recommendations for green economic development in Vietnam. Besides, the authors applied quantitative methods processed by SPSS 20.0 and Amos software based on surveying 700 foreign investors with descriptive statistical tools, measuring scales with Cronbach's Alpha, exploratory factor analysis (EFA), confirmatory factor analysis (CFA), structural equation modeling (SEM). The article's findings have three key factors affecting the attraction of foreign direct investment (FDI) for the green economy of Vietnam, with a significance of 1.0 percent. Three factors include investment policy (IP), Investment environment (IE), and quality of human resources (QHR). Finally, the study's value is to help policymakers and leaders of provinces and cities improve capital attraction efficiency and contribute to green economic growth in climate change and international integration.