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The Motorcycle Industry: The Global Context and the Vietnamese Case

In: Exploiting Linkages for Building Technological Capabilities

Author

Listed:
  • Mai Fujita

    (Institute of Developing Economies, Japan External Trade Organization)

Abstract

In order to understand the evolution of the Vietnamese motorcycle industry, it is essential to grasp the contrasting features of the Japanese and Chinese motorcycle industries. Japanese lead firms developed long-term and exclusive ties with a small number of fixed suppliers in order to develop lead firm proprietary models and manufacture them to high quality standards, while Chinese lead firms made extensive use of market forces in managing their linkages with a large number of suppliers to achieve price-based competitiveness in producing copies or slightly modified versions of popular Japanese models. Vietnam was the first place outside of China where the two groups of lead firms fought for supremacy. The rapid transformation and development of the Vietnamese motorcycle industry has been driven primarily by the competition between Japanese motorcycle manufacturers, which sought to replicate the conventional Japanese sourcing practices, and local Vietnamese assemblers, which essentially followed the Chinese way of exploiting market forces for producing low-priced copies of Japanese models.

Suggested Citation

  • Mai Fujita, 2013. "The Motorcycle Industry: The Global Context and the Vietnamese Case," SpringerBriefs in Economics, in: Exploiting Linkages for Building Technological Capabilities, edition 127, chapter 0, pages 9-19, Springer.
    • Handle: RePEc:spr:spbchp:978-4-431-54770-9_2
    DOI: 10.1007/978-4-431-54770-9_2
    as

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