Regional Competitiveness and Agricultural FDI Intention: Evidence from Vietnam’s Red River Delta
Copyright © 2026 The-Ngan Ma, Thi Diem Thuy Vo, Hung Manh Pham. Published by Nan Yang Academy of Sciences Pte. Ltd.
This is an open access article under the Creative Commons Attribution-NonCommercial 4.0 International (CC BY-NC 4.0) License.
Abstract
This study investigates the determinants of Foreign Direct Investment (FDI) intention in the agricultural sector of Vietnam’s Red River Delta. Drawing on regional competitiveness theory, it develops a conceptual model in which agricultural infrastructure, FDI attraction policies, and human capital influence FDI intention indirectly through the mediating role of regional FDI attractiveness. Data were collected from 307 senior managers and board members of foreign agribusiness firms operating in the region. Structural equation modeling results indicate that agricultural infrastructure, supportive FDI attraction policies, and human capital significantly enhance regional FDI attractiveness, which in turn exerts a strong positive effect on FDI intention. Bootstrapped mediation analysis confirmed the significant indirect effects of these factors via FDI attractiveness. Multi-group analysis further revealed sectoral differences, with human capital playing a particularly important role in animal husbandry compared to crop production. This study extends regional competitiveness theory to the context of agricultural FDI at the subnational level in a developing economy. It establishes FDI attractiveness as a key mediating mechanism linking physical, institutional, and human resources to investors’ intentions, moving beyond static locational advantages to emphasize dynamic regional capabilities. For provinces in the Red River Delta seeking to attract high-quality, technology-oriented foreign capital into agriculture, the study underscores the value of integrated strategies and subsector-specific approaches to foster sustainable agricultural development and value-chain integration.
Keywords: Foreign Direct Investment (FDI), Agriculture, Regional Competitiveness, Infrastructure, FDI Policies, Human Capital, Red River Delta, Vietnam
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