Study on Factors of Investment Environment Affecting the Satisfaction of Private Enterprises in Thai Nguyen Province, Vietnam

Abstract

Private economy is considered as one of the key constituent parts of national economy. The Document of the 6th National Party Congress stated: ‘Completing the policies to develop the private economy becomes one of the motivations of national economy.' In the 5th national party congress, the 12th Central Committee of Party determined: ‘Developing the private economy becomes an important motivation of socialist –oriented market economy.' With that important position, it is necessary to study the fulfillment of investment environment to motivate the development of private investment. In this writing, the author used the method of Exploratory Factor Analysis (EFA) in order to test the factors affecting and recognize the factors supposed to be fit to put into the Confirmatory Factor Analysis (CFA). Finally, the Structural Equation Modeling (SEM) is used to determine the influences of each factor on the investor's satisfaction. The result of authors showed that the service variables, legal institutions, labors, land access, infrastructure and transparency that are statistically meaningful to the satisfaction of enterprises. Therefore, it's important to boost the role of the government in creating investment environment in order to motivate the investment development of private enterprises.