Attracting Investment Capital to Help Develop the Economy of Countries in General and Attractive Localities in Particular

2.1 Theoretical overview of local characteristic distribution

Local attributes are also known as local attractive features. The unique local attractiveness is all that the locality can create to attract investors with distinctive characteristics compared to other localities.

Locality plays an important role for business investors, and business success depends greatly on the choice of business location. Therefore, local marketing activities must meet customers' requirements and local business investors [8]. Furthermore, to compete with other localities, local marketers must make their locality have attributes that satisfy current and future business investment customers.

How distribute local attributes will help localities focus their resources centrally. The attributes that are considered the most important will be prioritized for improvement first. Local attributes that are less important will be prioritized for improvement later.

2.2 Distributing local properties and attracting investment capital

The government's support is transported support, administrative services, legal document guidelines, a transparent and fair tax system, investment licensing procedures, and an infrastructure for product activities. Therefore, good support from the government agency will help investors be more satisfied with the province's business environment. Moreover, the annual publication of the PCI (Provincial Competitiveness Index) index also includes many factors about government support, such as administrative support services and transparency that affect the assessment of businesses [9]. Therefore, this study hypothesized:

H1: Government support has a positive impact on investment attraction

Skills training includes meeting enterprise resource requirements from training institutions, skilled workers suitable to business requirements, local management workers, etc. A locality with no comparative advantage can also attract investors if it has a high-quality workforce. A high-quality workforce reflects human capital and the ability to generate high productivity from turmoil [10]. The annual PCI report also shows that labor training is an essential factor in evaluating the investment opportunities of enterprises [9]. Therefore, this study hypothesizes as follows:

H2: Skills training has a positive effect on investment attraction

The living environment is considered to be the environment serving the production and business activities of the enterprise and the environment that attracts workers, ensuring the conditions as expected by both enterprises and employees, such as Health system good, a pollution-free environment, a friendly population, many entertainment spots, shopping, low cost of living, etc. These aspects can affect the investment choice of enterprises. Therefore, this study hypothesized the following:

H3: The living environment has a positive impact on investment attraction

Investment incentives are local incentives for attracting businesses to invest in local production, including fair preferential policies between companies; preferential policies are communicated transparently timely, attractive investment incentives for businesses. These aspects, if well met, will create satisfaction for local investors. Therefore, this study hypothesized the following:

H4: Investment incentives have a positive impact on investment attraction

The research model is presented in Figure 1.

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Figure 1. Research model

4.1 The reliability test

The Table 2 shows the result of reliability test.

Table 2. The first time to Reliability test

Items will be included in the analysis for reliability when both Cronbach's Alpha coefficients are greater than 0.6 and AVE is greater than 0.5. Evaluation of convergence indicates that the factor HT does not reach the confluence with HT4 and HT5, having a factor loading less than 0.5 (Table 2).

Items HT4 and HT5 will be excluded from analysis and retested. After removing HT4 and HT5, all constructs are reliable and convergent when the loading factor is greater than 0.5 (see Table 3), CR is greater than 0.7, and AVE is greater than 0.5. Therefore, the constructs continue to be included and analyzed in the next steps.

Table 3. The final reliability test

Next, the factors are all discriminant when the square root of AVE is smaller than the corresponding correlation coefficient between the factors. The Table 4 shows the result of discriminant test. For example, the smallest quadratic strain of AVE is 0.791, and the largest corresponding correlation coefficient is 0.633 (Table 4). After the discriminant test, the factors will be included in the analysis of the PLS-SEM model to test the research hypotheses.

Table 4. Discriminant validity

4.3 Testing the hypotheses

The results of the PLS-SEM analysis show in Table 5. The result shows that the independent variables do not have serious multicollinearity when the VIF is less than 10. Furthermore, the analysis results also show that all four factors have the same effect on attracting investment capital into the locality (Thai Nguyen Province). Therefore, the research hypotheses are accepted. Specifically:

The factor HT positively affects TH (b=0.468 and p-value = 0.000). This result indicates that when the local government has as much support as possible for businesses investing in the locality, it will increase the investment incentive of businesses. Hypothesis H1 is accepted. DT has a positive effect on TH (b=0.184 and p-value = 0.003). Therefore, the fact that the locality can meet the factors related to skills training for workers will help increase the attraction of capital to the province. In other words, hypothesis H2 is accepted.. Next, the factor MT positively affects TH (b=0.186 and p-value = 0.003). The better the local living environment, the more attractive the local investment capital will be. Hypothesis H3 is accepted. Finally, the factor UD positively affects TH (b=0.229 and p-value = 0.003). The more preferential policies the locality has, the more it will attract investment capital into Thai Nguyen province.

Table 5. The result of PLS-SEM

4.4 Discussion

Good local support will increase investment attractiveness for businesses. The developed transport system creates favorable conditions for moving within the province and surrounding satellite provinces. Therefore, creating favorable conditions for traveling as well as transporting goods. The convenient move makes operating and serving the business's work more convenient. At the same time, the support in terms of legal procedures to work in the province also makes it easier for companies to do business in the region. Finally, the support of local authorities when companies need to create problems arise in the business's working process to be resolved more quickly.

The factor of vocational skills training also positively influences attracting investment capital of enterprises to the locality. In the locality, there are vocational schools that meet the human resource needs of businesses, which will help enterprises not to worry about human resource problems. Quality human resources are provided enough in the province, which is favorable for businesses in recruiting workers. At the same time, with a highly skilled labor force in the area, the work in the enterprise can be completed well as expected. Human resources are trained in vocational schools and centers with short-term training courses that bring advantages to localities. Training to improve skills such as office work, foreign languages, etc. is also an advantage for localities with centers providing this service.

Next, the local living environment factor also has a positive impact on attracting investment capital. Systems such as schools, the development of health care help ensure learning problems for the children of staff, or medical services serving employees' health are guaranteed. In addition, the environmental pollution factor is also an indicator of the living environment for businesses. Localities with fresh air and less pollution will attract more investment for businesses. In addition, convenient and adequate entertainment and supermarket services are also factors to help companies invest more.

Finally, local investment incentives positively influence attraction investment in Thai Nguyen province. With timely preferential policies for businesses, it will help companies promote their business advantages. At the same time, attractive investment incentive policies increase competitiveness with other localities in attracting investment into the locality. Therefore, with local policies superior to other localities, businesses will be more concerned about their benefits when investing in the province.

Although research has found important resources to help attract private investment to Thai Nguyen province. However, the study still has some limitations: First, the study uses a limited sample size with private enterprises investing in Thai Nguyen province. This may be different when researching with other locales. Second, the impact of COVID-19 may affect the attraction of private investment capital to the province.

From these limitations, the study also proposes the following studies. Firstly, expand the study to other provinces and geographical regions to increase the sample size as well as the representativeness of the region. Second, an estimate of the COVID-19 factor for attracting private investment to Thai Nguyen province.