This paper uses stochastic frontier analysis to investigate the determinants and efficiency of foreign direct investment (FDI) inflows across 63 provinces in Vietnam over the 2007-2018 period. The results suggest that natural resources endowment, infrastructure, human capital, effective wages, and industrial parks are key factors determining FDI inflows. Efficiency scores reveal that Vietnamese provinces have not fully utilised their capacity for attracting FDI. The findings indicate that FDI efficiency could be enhanced by improving provincial governance institutions.

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