Vietnam's export-led growth model and competition with China

Chaponnière, Jean-Raphaël; Cling, Jean-Pierre

doi:10.3917/ecoi.118.0101

Cited by 10 publications

(4 citation statements)

References 35 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Despite their potentially ambiguous impacts, FTAs and inward FDI are considered to be key drivers of Vietnam's trade. Since Vietnam's "Doi Moi" or renovation policy 1 was launched in the mid-1980s to facilitate change from a centrally planned to a market-oriented economy, Vietnamese trade policy has been based on pursuing an export-led growth strategy (Nguyen and Xing, 2008), in which trade liberalisation, exports and FDI have been promoted (Chaponnière and Cling, 2009). Therefore, examining the effects of both trade liberalisation and FDI on Vietnam's trade is important, especially when foreign trade has become a primary factor driving economic growth (Kastelle and Liesch, 2013).…”

Section: Introductionmentioning

confidence: 99%

Effects of Trade Agreements and Foreign Direct Investment on Trade: Evidence From Vietnam

Duong¹,

Holmes²,

Strutt³

et al. 2019

IJEFI

View full text Add to dashboard Cite

In recent years, Vietnam has embarked on trade liberalisation leading to increased trade flows, as well as benefiting from increased foreign direct investment (FDI) inflows. This paper analyses the impacts of a range of trade agreements and FDI inflows on Vietnamese trade flows. We offer new insights through considering which of the key trade agreements have been more efficient in expanding Vietnamese trade, and how the sensitivity of trade to FDI has changed as a result. The estimation of gravity models over a 1996-2014 study period indicates that the bilateral trade agreements with the United States (US) and Japan have resulted in the most notable expansion of Vietnamese exports and imports, while the impacts from other regional trade agreements involving Vietnam are more mixed. We also find evidence of Vietnamese trade and FDI being complementary, with the positive relationship between FDI and exports becoming stronger following the bilateral trade agreements with the US and Japan.

show abstract

Section: Introductionmentioning

confidence: 99%

Effects of Trade Agreements and Foreign Direct Investment on Trade: Evidence From Vietnam

Duong¹,

Holmes²,

Strutt³

et al. 2019

IJEFI

View full text Add to dashboard Cite

show abstract

“…In Vietnam, although the ELG theory has been applied for more than 30 years, there are few studies on the relationship between exports and economic growth. The reasonableness of Vietnam's ELG strategy in relation to economic growth as well as the dependence of Vietnamese exports on the US and Chinese markets were described by Chaponnière & Cling [37]. This relationship was verified in a study conducted by Cong [38], who tested the impact of exports on economic growth by using the causality test model of Granger [9], Balassa [39], and Feder [11] and found that exports not only play an important role in promoting the country's economic growth but also actively contribute to the development of non-export.…”

Section: Literature Reviewmentioning

confidence: 99%

Combining Export- and Domestic Demand-Led Growth Hypotheses: Key Sustainable Development Amidst Global Dynamics

Hoa,

Ngoc,

Thanh Binh

et al. 2024

HighTech. Innov. J.

View full text Add to dashboard Cite

Export-led growth has conventionally been regarded as a pivotal determinant of economic growth in developing countries. The article aims to affirm the vulnerability of Vietnam’s export sector due to its dependence on foreign direct investment flows and external market demand and evaluate the validity of the export-led growth strategy being applied in Vietnam among evolving global dynamics. The review of relevant literature explored the theoretical foundations, theories, and concepts of export-led and domestic demand-led growth with regard to the causal link between exports and economic growth. Qualitative and secondary research methods were used to analyze statistical data sets on imports and exports and domestic demand components to highlight their impact on the country’s GDP growth. The results showed that it is necessary to embrace both export-led growth and domestic demand-led growth as concurrent development paradigms, thereby ensuring the sustainability of Vietnam’s economic growth. Doi: 10.28991/HIJ-2024-05-02-05 Full Text: PDF

show abstract

“…Vietnam had stressed on being the export-led growth country since the reformation in the mid-1980s (Chaponnière and Cling, 2009). Since 2012, Vietnam is experiencing a trade surplus as the export growth had increased more than the import (Clarke et.al, 2017…”

Section: Current Scenario Of the Export Industry Of Vietnammentioning

confidence: 99%

Comparative Analysis of Trade Competitiveness between Bangladesh and Vietnam

AISDL¹

2020

Preprint

View full text Add to dashboard Cite

Bangladesh and Vietnam have been the largest garments exporters to the world in recent decades after China. Therefore, competition between Bangladesh and Vietnam in the textile industry is getting intense day-by-day. Nonetheless, both the country shared some of the similar traits in policy reformation. Such as, both the nations became independent during the 1970s and reformed export-oriented policies during the 1980s. However, except for the apparel industry, Bangladesh had not gained any extraordinary success that can be comparable to Vietnam. Moreover, Vietnam’s trade competitiveness had always been better than Bangladesh in most of the period. The paper aims to identify the areas where Bangladesh is lagging behind Vietnam in terms of trade. In this regard, the various international index had been compared. From the comparisons, it has been linked with the trade scenario associated with both the nations. The findings are Vietnam’s policy has always been investing more in human capital, infrastructure and chances of export diversification. Additionally, Vietnam had been prosperous in attaining FDI inflows in different sectors of the economy. Hence, the country gained strong trade competitiveness through diversified export basket especially in electronics. In Bangladesh, FDI inflows and export growth rates had increased over the years. Then again, most of the foreign investments go towards the textile industry. Therefore, the export basket is highly concentrated around the garments sector. Moreover, Bangladesh had not been able to produce productive human capital and economic infrastructure. As a result, competitiveness did not improve noticeably. For a successful export diversification, increasing FDI inflows in other sectors rather than garments is necessary for Bangladesh to achieve akin success like Vietnam.

show abstract

Vietnam's export-led growth model and competition with China

Cited by 10 publications

References 35 publications

Effects of Trade Agreements and Foreign Direct Investment on Trade: Evidence From Vietnam

Effects of Trade Agreements and Foreign Direct Investment on Trade: Evidence From Vietnam

Combining Export- and Domestic Demand-Led Growth Hypotheses: Key Sustainable Development Amidst Global Dynamics

Comparative Analysis of Trade Competitiveness between Bangladesh and Vietnam

Contact Info

Product

Resources

About