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Growing pains: Vietnamese firms' operational efficiency and transition under the CPTPP

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  • Ding, David K.
  • Fang, Jiali
  • Nguyen, Phuc V.
  • Wongchoti, Udomsak

Abstract

Free Trade Agreements (FTA) offer both opportunities and challenges for local businesses by expanding global markets and increasing competition. This study examines how Vietnamese firms adapted to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in 2018. Initially, businesses experienced a drop in efficiency due to increased investments and trade credit, but quickly recovered, showing overall improvement in their market exploitation and growth. The most significant improvements were seen in large, profitable, liquid firms listed on the Ho Chi Minh Stock Exchange that remained resilient during the COVID-19 pandemic. These results highlight the capability of Vietnamese firms to thrive in global commerce.

Suggested Citation

  • Ding, David K. & Fang, Jiali & Nguyen, Phuc V. & Wongchoti, Udomsak, 2025. "Growing pains: Vietnamese firms' operational efficiency and transition under the CPTPP," Emerging Markets Review, Elsevier, vol. 69(C).
    • Handle: RePEc:eee:ememar:v:69:y:2025:i:c:s1566014125001281
    DOI: 10.1016/j.ememar.2025.101379
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    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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