This study applies Dunning eclectic paradigm to investigate MNCs’ choices of entry modes between WOS and JV and location choices within a developing country - Vietnam. More specifically, this study analyzes how ownership advantages, location advantages and internalization advantages at provincial level within Vietnam affect entry mode and location decisions of foreign firms. This study makes significant contributions to existing literature of international business. Firstly, this paper applies Dunning’s eclectic paradigm to examine the effect of factors within a host country at local level, rather than at national level, on entry mode and location choices choices of MNCs. Secondly, this study contributes to existing literature of international business on developing countries by providing more understanding of inward FDI flow into Vietnam and investment environment in Vietnam.