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Foreign Multinationals and Vietnamese Firm Exports, 2010-2013

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  • Ramstetter, Eric D.

Abstract

This paper examines the role foreign multinational enterprises (MNEs) played in Vietnamese firm exports during 2010-2013. Consistent with patterns observed in commodity export data, MNEs are found to account for the majority of firm exports during this period. Wholly-foreign MNEs (WFs), which accounted for the vast majority of MNE production in Vietnam, accounted for most MNE exports. Both WFs and MNE joint ventures (JV) made larger direct contributions to exports than to production or employment, as observed in other Asian developing economies. There was a strong tendency for WFs to have the highest export propensities (export-turnover ratios) followed by JVs. Manufacturing firms exported over four-fifths of the total in most years. Tobit estimates that controlled for the effects of firm size, capital intensity, liquidity, location, and industry affiliation for manufacturers indicate WFs also had the highest conditional export propensities, followed by JVs, private firms, while export propensities tended to be similar in state-owned enterprises (SOEs) and private firms in most industries. Because Vietnam imposes few ownership restrictions on MNEs, these results imply that MNEs generally prefer to export from WFs rather than JVs, and are consistent with previous results for Thailand and Indonesia, for example.

Suggested Citation

  • Ramstetter, Eric D., 2018. "Foreign Multinationals and Vietnamese Firm Exports, 2010-2013," AGI Working Paper Series 2018-04, Asian Growth Research Institute.
    • Handle: RePEc:agi:wpaper:00000143
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    References listed on IDEAS

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    More about this item

    Keywords

    Multinational enterprises; state-owned enterprises; ownership; exports; F14; F23; L33; L60; L81; O53;
    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
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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