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Foreign Firms in Vietnam and the US–China Trade War

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  • HAYAKAWA,Kazunobu
  • Dinh,Chuc Nguyen

Abstract

This study empirically investigates ownership of foreign firms in Vietnam during the US–China trade war. In our empirical analysis, we identify firm’s nationality by two indicators: the country of the largest shareholder or investor, and the directors’ nationalities. This differentiation plays a key role in identifying so-called “Singapore-washing” in Chinese firms. Our findings can be summarized as follows. First, foreign direct investment from Singapore is mostly conducted by non-Singaporeans. However, there are only a small number of Chinese directors’ firms with an investment source from Singapore. Second, among firms in Vietnam with Chinese directors, those that entered after the start of the US–China trade war or those with an investment source from countries other than China have a lower propensity for trade. Third, the larger presence of firms with an investment from China is associated with higher export growth to the US, but firms with Chinese directors are not.

Suggested Citation

  • HAYAKAWA,Kazunobu & Dinh,Chuc Nguyen, 2025. "Foreign Firms in Vietnam and the US–China Trade War," IDE Discussion Papers 951, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper951
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    References listed on IDEAS

    as
    1. Jiang, Lingduo & Lu, Yi & Song, Hong & Zhang, Guofeng, 2023. "Responses of exporters to trade protectionism: Inferences from the US-China trade war," Journal of International Economics, Elsevier, vol. 140(C).
    2. Rotunno, Lorenzo & Roy, Sanchari & Sakakibara, Anri & Vezina, Pierre-Louis, 2023. "Trade Policy and Jobs in Vietnam: The Unintended Consequences of Trump’s Trade War," SocArXiv 9rdne, Center for Open Science.
    3. Blanchard, Emily J. & Bown, Chad P. & Chor, Davin, 2024. "Did Trump’s trade war impact the 2018 election?," Journal of International Economics, Elsevier, vol. 148(C).
    4. Alberto Cavallo & Gita Gopinath & Brent Neiman & Jenny Tang, 2021. "Tariff Pass-Through at the Border and at the Store: Evidence from US Trade Policy," American Economic Review: Insights, American Economic Association, vol. 3(1), pages 19-34, March.
    5. Pablo D Fajgelbaum & Pinelopi K Goldberg & Patrick J Kennedy & Amit K Khandelwal, 2020. "The Return to Protectionism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(1), pages 1-55.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    US–China trade war|Chinese firms|Vietnam;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations

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