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Firm Export and the Impact of Foreign Ownership in Vietnam: A Micro-Data Analysis

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  • Nguyen Thi Thuy Vinh and Trinh Thi Thuy Duong

    (Foreign Trade University)

Abstract

This paper investigates the impact of foreign ownership on firm exports in Vietnam and analyzes how export participation and export intensity vary with ownership status by comparing Foreign Direct Investment enterprises (FDI enterprises) versus domestic firms, and wholly-foreign-owned enterprises (WFs) versus foreign joint ventures (JVs). Using data from 2010-2015 Vietnamese enterprise survey (VES), we document that after controlling for firm characteristics, industry and region, FDI enterprises have higher export participation and higher export intensity than local firms. The finding supports the hypothesis that FDI enterprises inherit from foreign firm competitive advantages and therefore become superior in exports. We also find that while export participation is similar between JVs and WFs, export intensity is significantly higher for WFs than for JVs. This suggests that export-oriented foreign investors tend to establish 100% foreign-owned companies to exploit advantages of labor costs or natural resources, while domestic-oriented firms tend to form joint venture to penetrate the domestic market.

Suggested Citation

  • Nguyen Thi Thuy Vinh and Trinh Thi Thuy Duong, 2020. "Firm Export and the Impact of Foreign Ownership in Vietnam: A Micro-Data Analysis," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 45(1), pages 123-143, March.
    • Handle: RePEc:jed:journl:v:45:y:2020:i:1:p:123-143
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    References listed on IDEAS

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    More about this item

    Keywords

    Export Participation; Export Intensity; Foreign Ownership; Vietnam.;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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