THE REAL CONTEXT OF LINKAGES BETWEEN THE FDI AND DOMESTIC MANUFACTURING COMPANIES IN VIETNAM
Keywords:
FDI, linkages, domestic manufacturing industriesDOI:
https://doi.org/10.17654/0972361724030Abstract
The paper analyzed the linkages between the FDI and domestic manufacturing firms in terms of horizontal, backward and forward. The study used the statistical analytical method to analyze the data of the Annual Enterprise Survey collected by the General Statistics Office (GSO) of Vietnam during the period from 2016 to 2020. The study discovered that the number of Vietnam’s manufacturing industries having significant connections with FDI enterprises was not much. The relation between the FDI and domestic manufacturing firms was around 10%. The domestic manufacturing industries having relations with the FDI firms included metal manufacturing; tobacco manufacturing; manufacturing beds, wardrobes, tables, chairs; textile and leather and related products industries.
Received: November 9, 2023
Accepted: December 29, 2023
References
G. Blalock and P. J. Gertler, Welfare gains from foreign direct investment through technology transfer to local suppliers, Journal of International Economics 74(2) (2008), 402-421.
M. Blomstrom and F. Sjoholm, Technology transfer and spillovers? Does local participation with multinationals matter? European Economic Review 43(4-6) (1999), 915-923.
Dao Le Thanh, Technical efficiency in Vietnam’s manufacturing industry: analytical results from the 2000-2006 enterprise census data, Journal of Economics and Development 63-67 (2013), 63-72.
V. R. Dondeti and B. B. Mohanty, Impact of foreign direct investment on the gross domestic product, exports and Imports of four Asian countries, Delhi Business Review 8 (2007), 1-21.
Henri Bezuidenhout, A regional perspective on Aid and FDI in Southern Africa, International Advances in Economic Research, International Atlantic Economic Society 15(3) (2009), 310-321.
B. S. Javorcik, Does foreign direct investment increase the productivity of domestic firms? In search of spillovers through backward linkages, American Economic Review 94(3) (2004), 605-627.
W. Keller and R. Yeaple, Multinational enterprises, international trade and productivity growth: firm level evidence from the United States, NBER Working Paper No. 9504, National Bureau of Economic Research (Cambridge, MA), 2003.
A. Kokko, Technology, market characteristics, and spillovers, Journal of Development Economics 43(2) (1994), 279-293.
A. Kokko, R. Tansini and M. C. Zejan, Local technological capability and productivity spillovers from FDI in the Uruguayan manufacturing sector, Journal of Development Studies 32(4) (1996), 602-611.
P. Lin, Z. Liu and Y. Zhang, Do Chinese domestic firms benefit from FDI inflow? Evidence of horizontal and vertical spillovers, China Economic Review 20(4) (2009), 677-691.
Michael Frenkel et al., A panel analysis of bilateral FDI flows to emerging economies, Economic Systems 28(3) (2004), 281-300.
Canh Nguyen et al., Technical efficiency of Vietnamese manufacturing firms: do FDI spillover matter? Journal of Business Economics and Management 22(2) (2021), 518-536.
C. D. Nguyen, G. Simpson, D. Saal, A. N. Nguyen and N. Q. Pham, FDI horizontal and vertical effects on local firm technical efficiency, Working Papers 17, Development and Policies Research Center (DEPOCEN), Vietnam, 2008.
B. Ni, M. Spatareanu, V. Manole, T. Otsuki and H. Yamada, The origin of FDI and domestic firms’ productivity - evidence from Vietnam, Journal of Asian Economics 52 (2017), 56-76.
Pham Le Thong and Ly Phuong Thuy, Technical efficiency of Vietnamese manufacturing enterprises, Journal of Economics and Development 229 (2016), 43-51.
Rati Ram and Kevin Honglin Zhang, Foreign direct investment and economic growth: evidence from cross-country data for the 1990s, Economic Development and Cultural Change 51(1) (2002), 205-215.
Sajid Answar and Lan Phi Nguyen, Is foreign direct investment productive? A case study of the regions of Vietnam, Journal of Business Research 67(7) (2014), 1376-1387.
K. Schoors and B. van der Tol, Foreign direct investment spillovers within and between sectors: Evidence from Hungarian data, Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium, 2002.
General Statistics Office (GSO), Annual Statistical Analysis and Forecast Reports in the Year, 2022.
Vu Thinh Truong and Vo Hong Duc, Measuring technical efficiency of listed companies in Vietnam: parametric and non-parametric methods, Journal of Economics and Development 222 (2015), 22-34.
J. Wang and M. Blomström, Foreign direct investment and technology transfer: a simple model, European Economic Review 36 (1992), 137-155.
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Pushpa Publishing House, Prayagraj, India

This work is licensed under a Creative Commons Attribution 4.0 International License.
____________________________
Attribution: Credit Pushpa Publishing House as the original publisher, including title and author(s) if applicable.
No Derivatives: Modifying or creating derivative works not allowed without written permission.
Contact Pushpa Publishing House for more info or permissions.
Journal Impact Factor: 