ABSTRACT
More than 30 years of economics innovation in Vietnam, Vietnamese government lauched many opened policies to attract FDI in order to help Vietnamese firms jointing in global value chain. Up to now, this aim seems fail. Spillover from FDI of MNC’s in Vietnam is weak. 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 benefitting 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to incorporate into the supply chain because of the lack of global experience, FDI, an educated workforce and outdated facilities.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 in order to acquire MNC contracts and find global partners who can supply financing and knowhow. This paper will applies quantitative model to test above- ideal in findings elements prevent Vietnam effort to joint in MNC’s supply chain. More ever, we can have more lessons to developing countries in periods of attracting FDI for economic development.
RESEARCH OBJECTIVE
The objective of this paper is 1) to review the supply chain requirements of select MNCs operating in Vietnam and to understand the challenges in outsourcing management; 2) to analyze the challenges of Vietnamese firms’ ability to join global supply chains through the OLI Framework of FDI; and 3) to make recommendations that would promote MNC and Vietnamese firm integration into global supply chains. 4) taking the lesson for developing countries to trade off national interest to global economic integration.