MINISTRY OF EDUCATION
AND TRAINING
MINISTRY OF PLANNING
AND INVESTMENT
CENTRAL INSTITUE FOR ECONOMIC MANAGEMENT
NGUYEN THI MAI HUONG
FACTORS AFFECTING THE SCALE OF FOREIGN DIRECT
INVESTMENT (FDI) IN VIETNAM’S AGRICULTURE
Major: Economic Development
Code: 9.31.01.05
SUMMARY OF DOCTORAL THESIS
Hanoi - 2021
Thesis was completed at:
Central Institue For Economic Management
Supervisors: 1. Assoc. Prof., Dr. Tran Thi Minh Chau
2. Dr. Nguyen Thi Xuan Huong
PGS.TS. Trần Thị Minh Châu
TS. Nguyễn Thị Xuân Hương
Reviewer 1: Assoc. Prof., Dr. Bui Tat Thang
Reviewer 2: Assoc. Prof., Dr. Ngo Thi Tuyet Mai
Reviewer 3: Dr. Le Thi Thuy Van
The thesis will be protected before the Institutional Review Board meeting
at the Central Institute for Economic Management at / /2021.
The thesis can be found at:
- Library of Central Institute for Economic Management
- National Library, Hanoi
LIST OF PUBLISHED WORKS BY AUTHOR
1. Nguyen Thi Mai Huong, Tran Thi Mo (2014), Status situation and
contribution of foreign direct investment in economic and social development in
Vietnam, Journal of Forestry Science and Technology No 3/2014
2. Nguyen Thi Mai Huong (2017), Attracting foreign direct investment
(FDI) in Agriculture in Vietnam: Situation and solutions, Journal of Forestry
Science and Technology No 3/2017
3. Nguyen Thi Mai Huong (2018), The impact of attracting foreign direct
investment (FDI) policy on Vietnamese economy, Economic Management
Review No 88 (05 + 06) / 2018
4. Nguyen Thi Mai Huong (2018), The duality of foreign direct
investment (FDI) in Vietnam, Statictical Scientific Information No 03/ 2018
5. Doan Thi Han, Nguyen Thi Mai Huong (2019), Collection of
investment capital in Agriculture and rural development in Vietnam, Journal of
Forestry Science and Technology No 1/2019
6. Nguyen Thi Mai Huong (2019), The contributions of foreign direct
investment to increase the competitiveness of Vietnam, Review of finance Issue
1+2 - February, 2019 (698+699)
7. Nguyen Thi Mai Huong, Tran Thi Minh Chau, Nguyen Thi Xuan
Huong (2019), Foreign experiences in increasing the scale of foreign direct
investment (FDI) in agricultural sector and lessons for Vietnam, Vietnam
Journal for Indian and Asian Studies, No 12 (85), 12/2019
8. Nguyen Thi Mai Huong, Tran Thi Minh Chau, Nguyen Thi Xuan
Huong (2019), Solutions for increasing foreign direct investment (FDI) in
Vietnam Agriculture, Journal of Science and Technology, No 55,12/2019
9. Nguyen Thi Mai Huong (2020), Improving Vietnam’s investment
environment to attract more foreign direct investment, Vietnam trade and
Industry Review, No 22 – 9/ 2020
10. Nguyen Thi Mai Huong (2020), Factors affecting foreign direct
investment capital attraction in the Agricultural sector in Hanoi, Science
research Topic belongs Vietnam National University of Forestry
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INTRODUCTION
1. The necessity of the thesis topic
Since our country conducted the renovation of economic development
model, shifting to market economy until now, agriculture still plays a particularly
important role. Not only occupying a high proportion (around 20%) in GDP, but
Vietnam’s agriculture is also the main source of income of more than 60% of the
population in the rural areas. Agriculture production in Vietnam is to satisfy the
nutrition needs, domestic food consumption, as well as to provide a huge source for
export. Not only that, in the difficult periods, when industrial production and
service seriously decline, Vietnam’s agriculture is the major pillar of the
economy… With the advantage and available natural conditions, agriculture
production is a sector with comparative advantage of Vietnam. In the recent years,
Vietnam has paid attention to developing the modern agriculture, trying to catch up
and even grow equally to the coutries which own modern and advanced agriculture
in the world.
Although having such an important role, but for many years, investment
capital in general, FDI in agriculture is still modest, not commensurate with the
potential and important significance of this field in the economy, which could not
create a rapid development step in producing goods with high quality as expected.
The FDI investment in agriculture sector often accounts for a low proportion, even
tends to decline. According to the report of Foreign Investment Agency in 2020, in
2001, FDI in agriculture occupied 8% of total national FDI, but until end of 2019,
total FDI in this sector dominated only 1%. Meanwhile, the pressure of accelerating
the industrialization- modernization and integration process is day to day deeper and
broader, which require Vietnam to increase the investment to build a modern and
competitive commodity agriculture.
In order to obtain the goal of attracting more and more FDI into the
agriculture sector, in terms of both the size and the proportion, it is necessary to
study and find the reasons why it is difficult to entice FDI into Vietnam’s
agriculture and search for solutions. There were several scientific works about this
issue, but there is not a works which apply modern theoritcal approaches to
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determine the factor influencing on the scale of FDI into Vietnam’s agriculture
sector.
Hence, that is why topic “Factors affecting the scale of foreign direct
investment in Vietnam’s agriculture” was chosen to study in this research.
2. The research’s renovation:
Firstly, building a general theory on attracting FDI into Vietnam's agricultural
sector (in which, the thesis applies Dunning's OLI theory to build the research
model of the thesis).
Second, analyze and synthesize experiences in increasing the scale of FDI in
the agricultural sector of the following countries: China, Thailand, Indonesia,
Malaysia, Israel and the draw lessons for Vietnam.
Third, analyze the current situation and the structure of FDI in the agricultural
sector in Vietnam by sub-sectors, by investment form, by investment partners, by
locality; assessing the current situation of 5 groups of factors affecting the scale of
FDI in the agricultural sector in Vietnam: infrastructure, natural conditions,
macroeconomics, social environment, policy institutions, only and the cause of
those limitations.
Fourthly, using the EFA, CFA analysis model, the Structural equation
modeling (SEM), Bootstrap estimation and test model to analyze, measure and
evaluate the impact of factors on the scale of FDI in the agricultural sector in
Vietnam. The study’s results on the influence of factors on investment decisions of
foreign investors in the agricultural sector, all of which have a positive impact on
the investment decisions of foreign investors and are arranged in order of priority:
infrastructure, policy institutions, social environment, macroeconomic and natural
conditions.
Fifth, applying SWOT analysis model to analyze Vietnam's strengths,
weaknesses, opportunities, and challenges in attracting FDI into the agricultural
sector. Then setting up strategies based on these analyses such as: Strengthening
internal force strategy; Strategy to attract investment partners; Strategy to improve
the investment environment; Strategy for agricultural product development; Strategy
to participate in the global value chain; The strategy of completing the agricultural
development policy aims to increase the scale of FDI in the agricultural sector.
