An analysis of the investment climate in agriculture in Hanoi Province, Vietnam

Hanoi province, Vietnam has much potential for agri cultural 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 proje cts in Hanoi in recent years. This paper presents the results of the structure interview of 200 manag ers of agricultural firms, co-operatives and farms in Hanoi province in 2008-2009. Even if these enterpr ises are pleased with their business performance and profitability, the investment climate could hav e negative effects obstructing investment incentive s in agriculture. The study revealed eight key factor s determining the investment climate in agriculture in Hanoi province, which include: land issue, provi ncial policies for agriculture, capital, physical infrastructure, administrative procedures, market, technology and labor issue. Land issues and provincial agricultural policies are the most impor tant constraints; the second group are capital, physical infrastructure, governmental administratio n; and the third are market, technology and labor issues.