Foreign Direct Investment at the provincial level in Vietnam using an integrated MCDM and DEA model

Foreign direct investment (FDI) is an important factor in building a strong economy for a country, particularly in developing and emerging markets. There is a need for a functional model to assess how the competitive index affects FDI attractiveness. Therefore, this study aims to conduct an integrated model of Grey Delphi, Data Envelopment Analysis Super Slack-Based Measure Model (DEA-Super SBM), and Malmquist Model (DEA-Malmquist) to evaluate the FDI attractiveness of Vietnamese provinces from 2017 to 2021. Firstly, ten critical dimensions of the provincial competitive index (PCI) affecting the number of FDI by cases and amount of FDI capital were validated via the Grey Delphi method. Secondly, the Super-SBM model is applied to assess the FDI efficiency of 63 provinces in Vietnam from 2017 to 2021. Then, the DEA-Malmquist model is employed to analyze the total change in the productivity of 63 provinces’ FDI performance in Vietnam. The findings of this study revealed how effective each province is at attracting FDI and how close it is to being considered efficient. Simultaneously, the change in efficiency over time was also conducted. Furthermore, this study can provide valuable insights for policymakers and other stakeholders in developing effective strategies to attract FDI and foster economic development.