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The rise and fall of multinational enterprises in Vietnam: survival analysis using census data during 2000-2011

Author

Listed:
  • Tien Manh Vu

    (Ph.D Candidate, Osaka School of International Public Policy, Osaka University)

  • Hiroyuki Yamada

    (Associate Professor, Osaka School of International Public Policy, Osaka University)

  • Tsunehiro Otsuki

    (Professor, Osaka School of International Public Policy, Osaka University)

Abstract

Using census data from 2000-2011, we examined the survival of multinational enterprises (MNEs) located in Vietnam using Cox hazard models with time-variant covariates. Beside enterprises' characteristics and performance, we found that the firm characteristics, structure of the ownership and nationalities of the foreign partners are associated with the probability of exiting, which suggests that a joint-venture between a foreign partner and a domestic non-state owned enterprise is more likely to exit than other types of MNEs. Also, a firm with a greater capital share owned by foreign partners was found to survive longer. Furthermore, time cost due to bureaucratic procedures and inspections, among indicators of local government performance, was found to be associated with a greater probability of MNEs exiting.

Suggested Citation

  • Tien Manh Vu & Hiroyuki Yamada & Tsunehiro Otsuki, 2014. "The rise and fall of multinational enterprises in Vietnam: survival analysis using census data during 2000-2011," OSIPP Discussion Paper 14E001, Osaka School of International Public Policy, Osaka University.
    • Handle: RePEc:osp:wpaper:14e001
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    Cited by:

    1. Yane, Haruka & Yamada, Hiroyuki, 2015. "Import Competition from Neighbors: Impacts on Performances of Enterprises in Vietnam," Conference papers 332621, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Otsuki, Tsunehiro & Michida, Etsuyo & Nabeshima, Kaoru & Ueki, Yasushi, 2014. "Estimating the effect of chemical safety standards on firm performance in Malaysia and Vietnam," IDE Discussion Papers 455, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    3. Otsuki, Tsunehiro & Honda, Keiichiro & Michida, Etsuyo & Nabeshima, Kaoru & Ueki, Yasushi, 2015. "Effects of RoHs and REACH regulations on firm-level production and export, and the role of global value chains : the cases of Malaysia and Vietnam," IDE Discussion Papers 526, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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    More about this item

    Keywords

    Foreign direct investment; Multinational enterprises; Survival; Ownership; Government performance; Vietnam;
    All these keywords.

    JEL classification:

    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects

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