IDEAS home Printed from https://ideas.repec.org/a/taf/rjapxx/v9y2004i2p223-248.html
   My bibliography  Save this article

Regionalization, foreign direct investment and poverty reduction: Lessons from Vietnam in ASEAN

Author

Listed:
  • Hafiz Mirza
  • Axèle Giroud

Abstract

This article examines whether, and to what degree, Vietnam has benefited from foreign direct investment (FDI) since its entry into ASEAN in 1995. The investigation consists of an assessment of ‘halo’ and market creation effects, linkages into the regional and global value chain and the lessons learned from the experience of other ASEAN countries. There is little evidence that the halo or market effects have affected TNC entry into Vietnam. However, foreign subsidiaries in Vietnam are closely integrated into regional and global value chains and ASEAN-based TNCs are a very promising source for further investment into Vietnam, however this value-chain involvement has to be managed very carefully. On the lessons side, the analysis shows that development in most ASEAN economies is largely a scale effect (with nuances) and the Holy Grail of spillover effects has scarcely been glimpsed. Vietnam can learn valuable lessons from ASEAN countries such as Malaysia and Thailand, where direct effects (e.g. employment) and consumption multipliers are high, but value-chain multipliers and spillovers remain low.

Suggested Citation

  • Hafiz Mirza & Axèle Giroud, 2004. "Regionalization, foreign direct investment and poverty reduction: Lessons from Vietnam in ASEAN," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 9(2), pages 223-248.
    • Handle: RePEc:taf:rjapxx:v:9:y:2004:i:2:p:223-248
    DOI: 10.1080/1354786042000207353
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1354786042000207353
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1354786042000207353?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nigel Driffield & Katiuscia Lavoratori & Yama Temouri, 2021. "Inward investment and UK productivity," Working Papers 014, The Productivity Institute.
    2. Josef T. Yap, 2010. "Managing Capital Flows: The Case of the Philippines," Chapters, in: Masahiro Kawai & Mario B. Lamberte (ed.), Managing Capital Flows, chapter 13, Edward Elgar Publishing.
    3. Scott R. Sanders & David L. Brown, 2014. "Escaping Poverty in Post‐Socialist Vietnam: Does Place Matter?," Poverty & Public Policy, John Wiley & Sons, vol. 6(4), pages 332-353, December.
    4. Nguyen, Thao Phuong, 2020. "The determinants impact on poverty reduction in Vietnam," OSF Preprints 3f9xc, Center for Open Science.
    5. Ma, Xufei & Delios, Andrew, 2007. "A new tale of two cities: Japanese FDIs in Shanghai and Beijing, 1979-2003," International Business Review, Elsevier, vol. 16(2), pages 207-228, April.
    6. Hummera Saleem & Malik Shahzad Shabbir & Syed Ali Raza Shah & Jalal Shah, 2021. "Nexus between Foreign Direct Investment and Poverty Reduction: A case of Pakistans," iRASD Journal of Economics, International Research Alliance for Sustainable Development (iRASD), vol. 3(3), pages 272-280, December.
    7. Bach Nguyen & Hoa Do & Chau Le, 2022. "How much state ownership do hybrid firms need for better performance?," Small Business Economics, Springer, vol. 59(3), pages 845-871, October.
    8. Anh Ngoc Nguyen & Nguyen Thang & Le Dang Trung & Ngoc Quang Pham & Chuc Dinh Nguyen & Nhat Duc Nguyen, 2008. "Foreign Direct Investment in Vietnam: Is There Any Evidence Of Technological Spillover Effects," Working Papers 18, Development and Policies Research Center (DEPOCEN), Vietnam.
    9. Fayyaz Ahmad & Muhammad Umar Draz & Lijuan Su & Ilhan Ozturk & Abdul Rauf & Shahid Ali, 2019. "Impact of FDI Inflows on Poverty Reduction in the ASEAN and SAARC Economies," Sustainability, MDPI, vol. 11(9), pages 1-24, May.
    10. Nguyen, Ngoc Anh & Nguyen, Thang, 2007. "Foreign direct investment in Vietnam: An overview and analysis the determinants of spatial distribution across provinces," MPRA Paper 1921, University Library of Munich, Germany.
    11. Anh Ngoc Nguyen & Nguyen Thi Tuong Anh & Nguyen Ngoc Minh & Nguyen Thi Phuong Mai, 2018. "SOUTH KOREAN MULTINATIONAL ENTERPRISES AND VIETNAM SMEs’ PARTICIPATION IN GLOBAL PRODUCTION NETWORKS IN THE CONTEXT OF INCREASED ASEAN AND EAST ASIAN REGIONAL ECONOMIC INTEGRATION," Working Papers 03, Development and Policies Research Center (DEPOCEN), Vietnam.
    12. Josef T. Yap, 2008. "Managing Capital Flows : The Case of the Philippines," Development Economics Working Papers 22703, East Asian Bureau of Economic Research.
    13. Babajide Fowowe & Mohammed Shuaibu, 2014. "Is foreign direct investment good for the poor? New evidence from African countries," Economic Change and Restructuring, Springer, vol. 47(4), pages 321-339, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rjapxx:v:9:y:2004:i:2:p:223-248. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rjap .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.