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Value Chain Dynamics and Growth of Local Firms:The Case of Motorcycle Industry in Vietnam

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  • Fujita, Mai

Abstract

Vietnam’s burgeoning market for motorcycles has attracted global industry eaders,players from developing countries, and local firms. This has led to a dynamic evolution of value chains. This paper presents an explanation of the varieties of the growth patterns xperienced by the local suppliers, focusing on the roles of customer and local supplier strategies. Case studies showed that while the role of customers may be important, strategies of suppliers to improve the ompetitive edge in the production of otorcycle components and to diversify into other products account for important ariations of growth trajectories among local suppliers. Findings presented in this paper suggest the need to direct more attention to strategy that local firms use to boost their competitive edge in business.

Suggested Citation

  • Fujita, Mai, 2008. "Value Chain Dynamics and Growth of Local Firms:The Case of Motorcycle Industry in Vietnam," IDE Discussion Papers 161, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper161
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    References listed on IDEAS

    as
    1. Hubert Schmitz, 2004. "Globalized Localities: Introduction," Chapters, in: Hubert Schmitz (ed.), Local Enterprises in the Global Economy, chapter 1, Edward Elgar Publishing.
    2. Ohara, Moriki & Sato, Yuri, 2008. "Asian Industrial Development from the Perspective of the Motorcycle Industry," IDE Discussion Papers 182, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    3. Ernst, Dieter & Kim, Linsu, 2002. "Global production networks, knowledge diffusion, and local capability formation," Research Policy, Elsevier, vol. 31(8-9), pages 1417-1429, December.
    4. Tewari, Meenu, 1999. "Successful Adjustment in Indian Industry: the Case of Ludhiana's Woolen Knitwear Cluster," World Development, Elsevier, vol. 27(9), pages 1651-1671, September.
    5. Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, vol. 48(1), pages 37-70, June.
    6. Fujita, Mai, 2007. "Local Firms in Latecomer Developing Countries amidst China's Rise -The case of Vietnam's motorcycle industry-," IDE Discussion Papers 97, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    Full references (including those not matched with items on IDEAS)

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    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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