Analysis of Factors Affecting Economic Growth in Vietnam’s Economic Regions During 2020–2024

Abstract

Abstract
This paper analyzes the key factors influencing GDP growth across three major economic regions in Vietnam (the Northern, Central, and Southern regions) during the period 2020–2024. Utilizing a linear regression model in combination with Principal Component Analysis (PCA) and regularization methods such as Ridge and Lasso, the study addresses multicollinearity issues and provides robust results. The findings indicate that foreign direct investment (FDI) and exports play a pivotal role in driving GDP growth, particularly in the Southern and Northern regions. In contrast, public debt has a clearly negative impact, with the strongest effect observed in the Central region. Based on these insights, the study offers specific policy recommendations aimed at attracting FDI, enhancing export value, and improving the efficiency of public investment.