Evaluating The Factors Affecting Foreign Direct Investment Attraction In Agriculture In Vietnam

Abstract

Attracting foreign direct investment (FDI) in general and attracting FDI specifically in the agricultural sector has always been of great interest to the state and the government, especially when Vietnam is in the process of sustainable integration and development. Therefore, information on factors affecting the FDI attraction to the agricultural sector is essential and important in the policy making. The study applied the Structural equation model (SEM) to determine the factors affecting the attraction of FDI into the agricultural sector in Vietnam. The research results from 176 FDI enterprises in the agricultural sector showed that the factors affecting FDI attraction to the agricultural sector include: Infrastructure & service; institutions & policy; social environment, macroeconomic environment, and natural conditions. In which, the factors infrastructure and institutions & policy have the strongest impact on the FDI attraction compared to the other factors social environment, macroeconomics, and natural conditions.