Business environmental factors affecting the efficiency of foreign direct investment emterprises in agriculture in VietNam

Abstract

This study investigates potential impact of business environment factors toward investment efficiency of foreign direct investment (FDI) enterprises with the context of Vietnamese agriculture sector. The authors combined qualitative research methods (expert interviews) to develop research and quantitative models (EFA, CFA and SEM) to test research hypotheses. The findings revealed a direct influence of business environment among a sample of 68 enterprises, including: (1) Macro environment; (2) Intra-sectorial factors and (3) Inter-sectorial factors on business performance (profit, cost, export revenue, market share). In conclusion, some implications are proposed for more appropriate mechanisms and policies to improve the efficiency of business environment and at the same time increase the attraction of FDI for the Vietnamese agriculture.