Impacting Job Satisfaction on Employee Loyalty: A Case Study at Direct Investment Enterprises in Vietnam

Vietnam is currently a developing country; human resource is one of the critical factors for economic growth and one of the fundamental indicators of development ability. With dynamic investment attraction policies and a favorable investment environment, Vietnam has continuously become one of the leading countries in attracting foreign investment. The economic integration process, which leads to fiercer competition in the labor market, makes it more difficult for FDI enterprises to maintain and manage human resources. Thus, the article aims to consider and evaluate the key factors affecting job satisfaction and its impact on employee motivation. The paper applied structural equation modeling and data surveying from 700 employees working for FDI enterprises. Based on the study results, six factors affect employees' job satisfaction, and satisfaction also affects loyalty at the statistical significance level of 1%, from which the authors propose governance implications for attracting and retaining employees effectively.