Labour share and international trade in the Vietnamese manufacturing industries

Minh-Phuong Thi Nguyen, Dong Xuan Nguyen and Viet Tuan Tran

Post-Communist Economies, 2026, vol. 38, issue 1, 30-44

Abstract: This paper examines the impact of international trade on labour shares by using the firm-level data for Vietnamese manufacturing industries from 2017 to 2021. The GMM estimates suggest that there exists a positive association between international trade and labour share, indicating that as firms are involved more in international trade, the income of their workers will increase in total value added. The results also indicate that international trade leads to higher labour share in more technology-intensive industries. The firms that conduct innovative activities tend to have lower labour shares. The firms in the urban districts also have higher labour shares than the firms located in rural areas in Vietnam. The new traders have higher labour shares than the non-trading and existing trading firms.

Date: 2026
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DOI: 10.1080/14631377.2025.2593852

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