EXPLORING THE ROLE OF INSTITUTIONAL TRUST AND POLICY STABILITY IN FDI THROUGH A GREY-QUALITATIVE DECISION MODEL IN VIETNAM

Foreign Direct Investment (FDI) has served as a cornerstone of Vietnam's rapid economic development. However, the complex and often uncertain policy environment necessitates a more nuanced understanding of investor behavior. This paper introduces a novel methodological framework—the Hybrid QualitativeGrey Decision Model for FDI (HQG-FDI)—which integrates qualitative investor perceptions with Grey Systems Theory (GST). Drawing from interviews and surveys with foreign investors operating in Vietnam, the study identifies key perceptual factors and applies Grey Relational Analysis (GRA) alongside GM (1,1) forecasting to analyze and project patterns in investor decision-making. Findings highlight the dominant role of policy stability, institutional trust, and bureaucratic clarity in shaping FDI behavior. The study provides policy recommendations to reduce uncertainty and better align governmental strategies with investor expectations.