Vietnam’s participation in the global value chains: An empirical study on the automotive industry
The automotive industry plays a crucial role in national and global economic development. Vietnam and the ASEAN-5 countries are commented to be active in the automotive international production network but mainly participate in the low-value-added segments of the global value chains (GVC). This stud...
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2023-06-01
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| Series: | Problems and Perspectives in Management |
| Subjects: | |
| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/18405/PPM_2023_02_Phuong.pdf |
| _version_ | 1797667769602277376 |
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| author | Linh Nguyen Thi Phuong Anh Vu Hai |
| author_facet | Linh Nguyen Thi Phuong Anh Vu Hai |
| author_sort | Linh Nguyen Thi Phuong |
| collection | DOAJ |
| description | The automotive industry plays a crucial role in national and global economic development. Vietnam and the ASEAN-5 countries are commented to be active in the automotive international production network but mainly participate in the low-value-added segments of the global value chains (GVC). This study aims to identify Vietnam’s position and level of participation in the global automotive value chain and compare them to the other ASEAN-5 nations. The paper uses the orthodox and modern trade-related GVC indicators built by Koopman et al. (2010) to accomplish the research objective. The results show that Vietnam and the ASEAN-5 countries located downstream of the global automotive value chain often have less potential to gain more value-added than the upstream position, despite their high level of participation. Compared to ASEAN-5 countries, Vietnam still needs to catch up. Although Vietnam’s auto industry has made many positive changes, it still mainly produces simple products and currently participates in the least added value segment in the global automotive value chain. The underdeveloped support industry in Vietnam is the main cause of this situation. The study makes several practical policy recommendations for Vietnam based on the research findings to improve its position in the production network for the automotive sector in the following years.
AcknowledgmentThe authors would like to thank the VNU University of Economics and Business, Hanoi, for financing the Research Project, number BBQT.04.2022. |
| first_indexed | 2024-03-11T20:19:18Z |
| format | Article |
| id | doaj.art-4b0341a77dc243819a1ff3575337f3d0 |
| institution | Directory Open Access Journal |
| issn | 1727-7051 1810-5467 |
| language | English |
| last_indexed | 2024-03-11T20:19:18Z |
| publishDate | 2023-06-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Problems and Perspectives in Management |
| spelling | doaj.art-4b0341a77dc243819a1ff3575337f3d02023-10-03T08:29:33ZengLLC "CPC "Business Perspectives"Problems and Perspectives in Management1727-70511810-54672023-06-0121272373310.21511/ppm.21(2).2023.6418405Vietnam’s participation in the global value chains: An empirical study on the automotive industryLinh Nguyen Thi Phuong0https://orcid.org/0000-0001-6399-2383Anh Vu Hai1https://orcid.org/0009-0001-3312-4275MA, Lecturer, Department of International Business, Faculty of International Business and Economics, VNU University of Economics and BusinessBachelor of Arts, Assistant lecturer, Department of International Business, Faculty of International Business and Economics, VNU University of Economics and BusinessThe automotive industry plays a crucial role in national and global economic development. Vietnam and the ASEAN-5 countries are commented to be active in the automotive international production network but mainly participate in the low-value-added segments of the global value chains (GVC). This study aims to identify Vietnam’s position and level of participation in the global automotive value chain and compare them to the other ASEAN-5 nations. The paper uses the orthodox and modern trade-related GVC indicators built by Koopman et al. (2010) to accomplish the research objective. The results show that Vietnam and the ASEAN-5 countries located downstream of the global automotive value chain often have less potential to gain more value-added than the upstream position, despite their high level of participation. Compared to ASEAN-5 countries, Vietnam still needs to catch up. Although Vietnam’s auto industry has made many positive changes, it still mainly produces simple products and currently participates in the least added value segment in the global automotive value chain. The underdeveloped support industry in Vietnam is the main cause of this situation. The study makes several practical policy recommendations for Vietnam based on the research findings to improve its position in the production network for the automotive sector in the following years. AcknowledgmentThe authors would like to thank the VNU University of Economics and Business, Hanoi, for financing the Research Project, number BBQT.04.2022.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/18405/PPM_2023_02_Phuong.pdfASEAN-5automotive industryglobal value chainVietnam |
| spellingShingle | Linh Nguyen Thi Phuong Anh Vu Hai Vietnam’s participation in the global value chains: An empirical study on the automotive industry Problems and Perspectives in Management ASEAN-5 automotive industry global value chain Vietnam |
| title | Vietnam’s participation in the global value chains: An empirical study on the automotive industry |
| title_full | Vietnam’s participation in the global value chains: An empirical study on the automotive industry |
| title_fullStr | Vietnam’s participation in the global value chains: An empirical study on the automotive industry |
| title_full_unstemmed | Vietnam’s participation in the global value chains: An empirical study on the automotive industry |
| title_short | Vietnam’s participation in the global value chains: An empirical study on the automotive industry |
| title_sort | vietnam s participation in the global value chains an empirical study on the automotive industry |
| topic | ASEAN-5 automotive industry global value chain Vietnam |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/18405/PPM_2023_02_Phuong.pdf |
| work_keys_str_mv | AT linhnguyenthiphuong vietnamsparticipationintheglobalvaluechainsanempiricalstudyontheautomotiveindustry AT anhvuhai vietnamsparticipationintheglobalvaluechainsanempiricalstudyontheautomotiveindustry |