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Abstract:
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Beside the positive impacts since 1988, foreign direct investment (FDI) in the Vietnam’s agriculture and rural area has also confronted four serious issues: (i) a lower level of FDI in the agriculture and rural area than in other sectors; (ii) a decline trend; (iii) uneven allocation among regions and areas; and (iv) absence of big foreign investors. The mentioned issues can be attributed to three main groups of causes: first, the ones originated by the sector flawed management system; second, the too low level of production capacity/factors and vulnerability of agro-forest production/products; and third, the causes yielded by macro policies which are not really in favor of investment in agriculture and rural area. Based on situation analysis and problem identification under the context of international integration, this paper offers four groups of strategic actions, which can be considered by policy makers as a package of policy measures: (1) Develop a strategy for projection and utilization of FDI in agriculture and rural area; (2) Build up a sector FDI management and promotion system; (3) Coordinate domestic financial resources with official development assistance (ODA) and non-government assistance in order to upgrade rural infrastructure and production capacity; and (4) Implement studies on factual conditions for mobilization of FDI within the sector. |