Greener Journal of Business and Management Studies

Greener Journal of  Business and Management Studies  Vol. 3 (5), pp. 207-223, July 2013

 ISSN: 2276-7827  

Research Paper

Manuscript Number: 051313606

Strengthening Rural Investment Climate and the Government’s Effort in Northern Vietnam

Tran Quang Trung¹* and Keishiro Itagaki²

[1]Faculty of Accounting and Business Management, Hanoi University of Agriculture, Trau Quy, Gia Lam district, Hanoi, Vietnam.

2Department of Environmental Symbiotic Studies, Tokyo University of Agriculture, 1-1-1, Sakuragaoka, Setagaya-ku, Tokyo, 156-8502 Japan.

*Corresponding Author‘s Email: tqtrung @ hua. edu. vn

Abstract:

As many countries in the world, Vietnam is on ways to improve its investment climate from the perspective of investors. This paper aims to assess rural investment climate and analyze the Government’s effort to strengthen rural investment climate in Northern Vietnam. Data used for the research was collected from a survey with 200 agro-enterprises in the North of Vietnam and statistical analysis was used to identify constraints of rural investment climate and analyze significant effects of the policy initiated by the Government to remove these constraints. As positive citing of the agro-enterprises, the Government’s efforts have largely contributed to improve rural investment climate in Northern Vietnam. The analytical results showed that some constraints are believed to have positive changes such as rural infrastructure, taxation, administrative procedures, workforce and legal environment whilst other obstacles which include access to credit, access to land and macro uncertainty are emerging as the biggest obstacles for enterprises to perform their business activities. Finally, the paper expresses some policy implications that may significantly contribute to remove the obstacles of rural investment climate in Northern parts of Vietnam.

Keywords: Rural investment climate, Constraint, Strengthening, Northern vietnam.

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