The Motorcycle Industry: The Global Context and the Vietnamese Case

Mai Fujita ()
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Mai Fujita: Institute of Developing Economies, Japan External Trade Organization

Chapter Chapter 2 in Exploiting Linkages for Building Technological Capabilities, 2013, pp 9-19 from Springer

Abstract: Abstract In order to understand the evolution of the Vietnamese motorcycle industry, it is essential to grasp the contrasting features of the Japanese and Chinese motorcycle industries. Japanese lead firms developed long-term and exclusive ties with a small number of fixed suppliers in order to develop lead firm proprietary models and manufacture them to high quality standards, while Chinese lead firms made extensive use of market forces in managing their linkages with a large number of suppliers to achieve price-based competitiveness in producing copies or slightly modified versions of popular Japanese models. Vietnam was the first place outside of China where the two groups of lead firms fought for supremacy. The rapid transformation and development of the Vietnamese motorcycle industry has been driven primarily by the competition between Japanese motorcycle manufacturers, which sought to replicate the conventional Japanese sourcing practices, and local Vietnamese assemblers, which essentially followed the Chinese way of exploiting market forces for producing low-priced copies of Japanese models.

Keywords: Motorcycle industry; Lead firm-supplier relationship; Japan; China; Vietnam (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:spr:spbchp:978-4-431-54770-9_2

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DOI: 10.1007/978-4-431-54770-9_2

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