Economic policies and technological development of Vietnam’s electronics industry

Abstract

This paper examines the impact of economic policies on the development of Vietnam's electronics industry. We identified, reviewed, evaluated and interviewed various stakeholders in the industry about the policies implemented by the Vietnamese government during the period 1986–2017. We argue that while the policy aiming at learning through technological spillover from foreign direct investment led to the specific level of the technological development, problems during its implementation, coupled with institutional failures brought about unintended consequences. We conclude that trade liberalisation alone did not deliver the desired technological upgrading for domestic firms in Vietnam. Our paper provides policy implications for technological development in developing countries.

Keywords:

• Economic development policy
• electronics industry
• technological development
• Vietnam

Acknowledgements

The authors thank the anonymous referees for their helpful comments and suggestions.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 https://thuvienphapluat.vn/van-ban/Doanh-nghiep/Luat-Doanh-nghiep-Nha-nuoc-1995-39-L-CTN-39099.aspx

2 https://thuvienphapluat.vn/van-ban/Doanh-nghiep/Luat-doanh-nghiep-nha-nuoc-2003-14-2003-QH11-51698.aspx

3 https://thuvienphapluat.vn/phap-luat/tim-van-ban.aspx?keyword=LU%E1%BA%ACT%20%C4%90%E1%BA%A6U%20T%C6%AF%20N%C6%AF%E1%BB%9AC%20NGO%C3%80I&match=True&area=0

4 The interviewee referred to foreign buyers who came to source for components but not involved in setting up FDI firm in Vietnam.

Additional information

Notes on contributors

Hanh Song Thi Pham

Hanh Song Thi Pham is a senior lecturer in International Business and Economics at Sheffield Business School, Sheffield Hallam University, UK. She obtained MSc degree in International Economics from University of Birmingham, UK and PhD degree in Management and Development Studies in Copenhagen Business School. An economist by background, her main research interests are on growth and catching-up process of firms and economies in the developing world. Many of her studies using the data and empirical context of Vietnam were published in Journal of Development Studies, Journal of International Marketing Review, Journal of Business Research, Asia Pacific Management Review, Journal of General Management, and International Business Review, Management Research Review, Tourism Review among others.

Anh Ngoc Nguyen

Anh Ngoc Nguyen is an applied economist at Development and Policies Research Center (DEPOCEN) in Hanoi, Vietnam. He obtained PhD degree in Economics from Lancaster University, UK. He has developed his research interests in development economics, from innovation, corruption to inequality and poverty reduction. He has recently published in Journal of Public Economic Theory, Economics of Education, Journal of Economic Studies, and Tobacco Control.

Andrew Johnston

Andrew Johnston is Reader in the Economics of Innovation and Entrepreneurship at Sheffield Business School, Sheffield Hallam University, UK. He obtained PhD degree in Economics from University of Sheffield. An economist by background, his research interests focus on the inter-related processes of innovation and entrepreneurship within small businesses, particularly university-industry linkages and the innovation process.