Impact of Foreign Direct Investment and Barriers to MNC Supply Chain Integration in Vietnam

Hamdi Bilici Loi Ta Briant Carcamo
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Hamdi Bilici Loi Ta Briant Carcamo: California State University, California, USA. Department of International Business, National Economics University, Vietnam. Steadfast Management Company, California, USA.

Zagreb International Review of Economics and Business, 2017, vol. 20, issue SCI, 1-11

Abstract: The Vietnamese economy has been progressing to become a supplier to many multinational corporations (MNC). However, barriers presently exist that prevent Vietnamese firms from fully integrating into the supply chain of these global actors. Weak FDI overflow and block trading has government officials and business executives troubled that Vietnamese firms are still on the periphery of these global supply networks. Even as MNCs operating in Vietnam import many semi-finished products from other countries, Vietnamese firms are not benefiting from the opportunities to incorporate into the supply chain because of the lack of global experience, FDI, an educated workforce and outdated facilities. Vietnamese firms must upgrade their facilities and equip their labor forces to acquire MNC contracts and find global partners who can supply financing and knowhow. JEL Classification: F4, F6, F65

Keywords: FDI theory of OLI; supply chain management; multinational company; spillover of FDI; impact of FDI (search for similar items in EconPapers)
Date: 2017
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