Linkages Between Domestic and Foreign Enterprises: A Case Study of The Electronics Industry in Vietnam

Nguyen Thi Thanh Mai ()
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Nguyen Thi Thanh Mai: Swinburne Vietnam Alliance Program, FPT University

A chapter in New Challenges of the Global Economy for Business Management, 2025, pp 835-849 from Springer

Abstract: Abstract Vietnam's electronics industry is a key economic driver, propelled largely by foreign direct investment (FDI). This study delves into the underexplored interactions between domestic firms and foreign enterprises in this sector. Despite FDI’s role in transforming Vietnam into a global manufacturing hub, domestic companies remain limited to low-value supply roles, struggling with technology integration and global market access. This study aims to bridge the literature gap by analyzing these linkages and assessing government policies intended to enhance them. Using indicators of FDI influence, market share, and localization rates, data from the Vietnam Enterprise Survey and other industry sources from 2010 to 2022 were employed. Findings highlight the limited integration of domestic firms into the electronics value chain and identify barriers such as technological capability and policy limitations. Recommendations focus on policy reforms to foster innovation and strategic partnerships, ultimately aiming to elevate local enterprises' roles in global production networks.

Keywords: Linkages; Foreign Direct Investment (FDI); Electronics industry; Vietnam (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-981-96-4116-1_53

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DOI: 10.1007/978-981-96-4116-1_53

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