Attracting Foreign Direct Investment in Agriculture: A Study in Vietnam

Securing foreign direct investment (FDI), both in a broader context and specifically within the agricultural domain, has consistently captured the attention of the state and government. This interest is particularly pronounced as Vietnam navigates the path of sustainable integration and development. Hence, comprehending the variables influencing FDI attraction in the agricultural sector is crucial for informed policy formulation. To investigate these dynamics, the study employs the Structural Equation Model (SEM) to identify the determinants of FDI attraction in Vietnam's agricultural sector. Findings derived from a sample of 176 FDI enterprises in the agricultural domain underscore the significance of factors such as infrastructure and services, institutions and policy, social environment, macroeconomic conditions, and natural circumstances in shaping FDI attraction. Notably, among these factors, infrastructure and institutions & policy exert the most substantial influence on FDI attraction, surpassing the impact of social environment, macroeconomics, and natural conditions.