An analysis of the investment climate in agriculture in Hanoi Province, 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 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 issue, 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.