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Foreign Direct Investment in Industrial Transition: The Experience of Vietnam

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  • Prema-chandra Athukorala

    ()

  • Tran Quang Tien

Abstract

This paper examines the role of foreign direct investment (FDI) in the process of industrial transition in Vietnam in the context of market-oriented reforms undertaken over the past two decades. The findings are consistent with the conventional wisdom that concomitant liberalization of trade and investment regimes, accompanied by creating a congenial environment for market-based decisions by the private agents, is vital for reaping developmental gains form FDI. During the 1990s growth of employment in foreign invested enterprises (FIEs) lagged behind output growth, reflecting the capitalintensity bias of production in a partially-liberalized economy. This pattern has changed notably in recent years as the reform process gained momentum. Of particular significance in this connection is the growing importance of assembly activities by FIEs in electronics and other high-tech industries.

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File URL: https://crawford.anu.edu.au/acde/publications/publish/papers/wp2009/wp_econ_2009_20.pdf
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Bibliographic Info

Paper provided by The Australian National University, Arndt-Corden Department of Economics in its series Departmental Working Papers with number 2009-20.

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Length: 47 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:pas:papers:2009-20

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Keywords: Vietnam; Asia; foreign direct investment; transitional economy; multinational enterprises;

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Cited by:
  1. Prema-chandra Athukorala, 2008. "Trade and Investment Patterns in Asia : Regionalisation or Globalisation?," EABER Working Papers 21794, East Asian Bureau of Economic Research.

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