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Learning Technological Capability for Vietnam's Industrial Upgrading: Challenges of the Globalization

Author

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  • Ca, Tran Ngoc

    (National Institute for Science and Technology PolicyAnd Strategy Studies (NISTPASS))

Abstract

The paper discusses technological capabilities in Vietnamese industry considering mainly the role of foreign companies. The support of technological change is limited by specific disadvantages of Vietnamese environment, mainly insufficient organizational and legal shortcomings. Thus the connections between foreign and local companies did not produce expected results. The diffusion of technological skills takes place via training process, transfer of tacit and codified knowledge, spillover to local partners and influence absorption capacity of the local market. The cases of ten foreign companies from five different countries are presented. Major conclusions underline the threats of global operations of international companies when they are not supported by enlightened policies of companies and governments in host countries on one side and present the opportunities for these countries economy on the other.

Suggested Citation

  • Ca, Tran Ngoc, 2002. "Learning Technological Capability for Vietnam's Industrial Upgrading: Challenges of the Globalization," EIJS Working Paper Series 165, Stockholm School of Economics, The European Institute of Japanese Studies.
    • Handle: RePEc:hhs:eijswp:0165
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    Cited by:

    1. Enrico Santarelli & Hien Thu Tran, 2017. "Young innovative companies: Are they high performers in transition economies? Evidence for Vietnam," The Journal of Technology Transfer, Springer, vol. 42(5), pages 1052-1076, October.

    More about this item

    Keywords

    FDI; Joint-ventures; technology spillover; technological capabilities; tacit knowledge; low-cost-labor-trap; value chain; technical change;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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