THE APPLICATION OF FUZZY-TOPSIS TO EVALUATE THE POTENTIAL FOR ATTRACTING FDI TOWARD SUSTAINABLE DEVELOPMENT: A CASE STUDY IN DANANG CITY

Abstract

With a vision to promote FDI inflows alongside sustainable development (SD) goals, policymakers in Danang City face the challenge of how to objectively and accurately evaluate the FDI potential of individual local areas, thereby formulating strategies to effectively allocate and utilize resources. To address this, the study proposes a Fuzzy-based multi-criteria decision-making model, named FuzzyTOPSIS, to assess and rank the FDI potential of four major economic clusters in Da Nang: the HighTech Industry Cluster, the Seaport-Logistics Cluster, the Innovation Cluster, and the High-Tech Agriculture Cluster. The results show that the High-Tech Industry Cluster holds the highest potential for attracting sustainable FDI, followed by the Seaport-Logistics Cluster, the High-Tech Agriculture Cluster, and finally, the Innovation Cluster. These findings derived from Fuzzy-TOPSIS align closely with the city’s development strategy, thereby affirming the applicability of the model, and its practical value in informing FDI policymaking.