The 22nd Workshop Information
15 April 2006 (Sat), GRIPS Campus in Tokyo [MAP]
Lecture Room G (5th floor) 14:00-17:00
"Development of Supporting Industries in Vietnam"

Mr Junichi Mori
(GRIPS/VDF-Tokyo Researcher)

   Vietnam opened up to the outside world in the early 1990s, and expected that the massive inflow of foreign direct investment (FDI) would accelerate economic growth. However, FDI inflow has not reached the critical mass yet. While various external factors are responsible for this, the weakness of supporting industries is considered to be one of the primary factors responsible for this. Competitive supporting industries are required to attract more FDI into Vietnam, because multi-national corporations (MNCs) consider them to be an important factor in the decision to expand FDI, in addition to labor costs.

    Based on research in Vietnam, Mr. Mori will present his analysis of supporting industries, focusing on: i) the theory of economic growth through development of supporting industries, ii) MNCs’ demand for local procurement, iii) supply-side constraints, and iv) how public policy can contribute to removing obstacles. He assumes that the development of supporting industries in Vietnam is impeded by two types of barriers: i) the minimum efficient scale problem and ii) information failure. In addition, he proposes that appropriate public policies may help domestic supporting industries overcome these obstacles by promoting technology upgrading. Among various policy options, the establishment of a collaborative training program between MNCs and domestic supporting industries is highly recommended.

Workshop Summary

Paper (PDF867KB) | Slides (Final, PDF293KB)

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