Analysis of the investment climate in agriculture in Hanoi province, Vietnam
2010
Tran Hu Cuong | Bui Thi Nga, Hanoi Univ. of Agriculture, Hanoi (Vietnam)
Hanoi province, Vietnam has much potential for agricultural development with its large consumer market for agricultural products, soil and water resources, natural climate, physical and social infrastructure. It is also one of the provinces that has attracted a large number of investors. However, there are few agriculture investment projects in Hanoi in recent years. This paper presents the results of the structure interview of 200 managers of agricultural firms, co-operatives and farms in Hanoi province in 2008-2009. Even if these enterprises are pleased with their business performance and profitability, the investment climate could have negative effects obstructing investment incentives in agriculture. The study revealed eight key factors determining the investment climate in agriculture in Hanoi province, which include: land use, provincial policies for agriculture, capital, physical infrastructure, administrative procedures, market, technology and labor issue. Land issues and provincial agricultural policies are the most important constraints, the second group are capital, physical infrastructure, governmental administration, and the third are market, technology and labor issues.
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