Vietnam’s Integration Into Global Value Chains: Econometric Evidence on Forward and Backward Linkages

Linh Thao Thi Nguyen and Linh Phuong Thi Nguyen ()
Additional contact information
Linh Thao Thi Nguyen: Vietnam National University, University of Economics and Business
Linh Phuong Thi Nguyen: Phenikaa University, Phenikaa School of Economics

A chapter in Entrepreneurship and Human-Centric Business Strategies for Social and Economic Resilience, 2026, pp 1047-1063 from Springer

Abstract: Abstract Vietnam’s deeper engagement in global value chains (GVCs) has played a pivotal role in its export-led growth, yet the country’s positioning within these chains remains uneven. This study investigates the asymmetric determinants of Vietnam’s GVC participation by disaggregating forward and backward linkages over the period 2007–2023. Drawing on annual macroeconomic data, the analysis applies Ordinary Least Squares (OLS) regression with robust standard errors to capture the distinct determinants of each linkage. The findings reveal that forward linkage—reflecting domestic value-added in foreign exports—is significantly influenced by trade openness, capital formation, and population dynamics. In contrast, backward linkage—capturing foreign value-added embedded in domestic exports—is predominantly driven by final consumption and GDP growth. Institutional and environmental variables such as political stability and CO2 emissions do not exhibit statistically significant effects in either model. These results underscore the need for tailored policy approaches to GVC upgrading. While upstream integration requires strengthening trade facilitation and investment, downstream participation depends on domestic demand and production upgrading. The study offers empirical insights and practical recommendations for advancing Vietnam’s position in the global production network.

Keywords: Global value chains; Forward linkage; Backward linkage (search for similar items in EconPapers)
Date: 2026
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-981-95-6415-6_66

Ordering information: This item can be ordered from
http://www.springer.com/9789819564156

DOI: 10.1007/978-981-95-6415-6_66

Access Statistics for this chapter

More chapters in Springer Proceedings in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().