Search

Begin New Search Political Geography Vietnam Publishing Institution Economic Research Institute for ASEAN and East Asia (ERIA) Publication Year within 10 Years Publication Year within 5 Years

1. Development of the Blue Economy in Viet Nam

Author:
Vo Tri Thanh
Publication Date:
06-2023
Content Type:
Policy Brief
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Viet Nam is exploring various models to promote long-term economic growth and sustainable development, including the blue economy. Viet Nam’s policy documents have no formal definition of the marine economy or the newer concept of the blue economy. However, the policy documents have increasingly captured the essence of the blue economy, especially related to sustainable development. While lacking frequent updates and sufficient scope, the available statistics show the importance of the marine economy in the country. Viet Nam has various advantages for blue economy development, including high levels of sea traffic, a large sea area, a long coastline, and abundant marine resources. New opportunities for blue economy development can arise from consumers’ attention to sustainable development, improvement of the related legal framework, and cooperation with partners and foreign investors. However, Viet Nam needs to improve the awareness of local authorities and people, strengthen institutions for blue economy development, and upgrade the capacity to forecast and warn of natural disasters and climate change at sea, including via international cooperation.
Topic:
Governance, Regulation, Sustainability, ASEAN, and Blue Economy
Political Geography:
Vietnam and Southeast Asia

2. Impacts of FDI Presence and Product Sophistication on the Demand for Skilled and Unskilled Labour: Evidence from SMEs in Viet Nam

Author:
Quang Hoan Truong and Van Chung Dong
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study employs data from the Viet Nam Enterprise Survey (VES) for 2007 and 2011) to examine the effect of foreign direct investment (FDI) and product sophistication as well as the interaction between these two factors on the skilled and unskilled labour demand on Viet Nam’s small and medium-sized enterprises (SMEs). It finds that the FDI presence in the same industry but different regions – and FDI in the same region but different industries – has a positive effect on the skilled labour demand and a negative impact on the unskilled labour demand. FDI in the same industry has a negative effect on the skilled labour demand and an advantageous impact on the unskilled labour demand. The product sophistication index is found to positively affect the skilled labour demand but decreases the demand for unskilled labour. When interacting with product sophistication, FDI presence in the same industry and region positively affects the skilled labour demand. The study also finds the opposite impacts of different types of FDI presence as well as the interaction between FDI presence and product sophistication on the demand for highly, medium-, and basic-skilled labour. Thus, it is important to consider the opposite effects of different types of FDI and the interaction between FDI presence and product sophistication on SME labour demand by skills level.
Topic:
Foreign Direct Investment, Skilled Labor, Small Industries, and Unskilled Labor
Political Geography:
Vietnam and Southeast Asia

3. Adoption of Sustainable Practices for Improving Agricultural Productivity in Viet Nam

Author:
Huong-Giang Pham, Tuong-Anh T. Nguyen, and Hoang-Nam Vu
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Conventional agricultural methods are putting considerable strain on developing countries’ environments. This problem can be ameliorated through the adoption of Sustainable Agricultural Practices (SAPs), which can bring economic, ecological and social benefits for farmers, consumers and the overall economy. However, the adoption rates of SAPs remain low in many developing countries. It is therefore vital to provide empirical evidence on the improvement of agricultural productivity as it may assist policymakers in designing suitable policy as well as encourage farmers to adopt SAPs on their farms. This study analyses the impacts of different SAP adoption packages on land productivity and labour productivity in Viet Nam. This is the first attempt in the context of Viet Nam to investigate the economic effects of adopting different SAP packages including crop diversification (CD), conservation agriculture practices (CA) and a combination of those. Using panel Viet Nam Access to Resources Household Survey (VARHS) data with multinomial endogenous switching regressions and an instrumental variable helps reduce potential biases in impact evaluation that previous studies have not fully addressed. Results confirm that if a farmer adopts SAPs, it may raise his net profit per hectare by about 4 million Vietnamese Dong (D)/ha/year, whereas the agricultural income per hectare increases by about 4–6 million D/ha/year. Moreover, the joint adoption of multiple SAPs brings higher benefits (of about 2–4 more million D/ha/year) than single SAP adoption. These findings suggest that policymakers and related stakeholders should focus on promoting the adoption of a combination of crop diversification and conservation practices.
Topic:
Agriculture, Sustainability, and Productivity
Political Geography:
Vietnam and Southeast Asia

4. Productivity Effects of Viet Nam’s Rice Land Restrictions

Author:
Peter Warr and Huy Quynh Nguyen
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Viet Nam’s 1986 programme of market-oriented economic reforms did not include the freedom of farmers to choose their crops independently. Large areas of land remain restricted to rice production. This paper studies the effects of this policy on agricultural productivity, using panel data from the Viet Nam Access to Resources Household Survey (VARHS), covering the years 2008 to 2016. The econometrics uses fixed effects methods with and without the additional use of instrumental variable methods to allow for the possible statistical endogeneity of the restrictions. The findings are that the crop choice restrictions reduced the overall productivity of annual crop land by about 5%, reduced the overall productivity of farm labour by about 8% and reduced the mean incomes of farm households by 5%–6%, implying increased levels of rural poverty. Moreover, rice output would have been no lower if the restrictions were removed.
Topic:
Agriculture, Development, Governance, Regulation, Land, and Productivity
Political Geography:
Vietnam and Southeast Asia

5. Does the Skill Premium Influence Educational Decisions? Evidence from Viet Nam

Author:
Ian Coxhead and Nguyen Vuong
Publication Date:
05-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Viet Nam’s economy has grown and changed in dramatic ways since WTO accession in 2007. Much of the growth and change is due to expanded international trade and FDI. These in turn have greatly increased domestic labour demand. However, growth that exploits the country’s abundant supply of low-skill labour may depress the relative demand for skills. In this paper we ask whether the skill premium – the relative price of skills, which also measures the gross economic benefit to schooling at high school and beyond – plays an influential role in schooling decisions amongst teenagers for whom wage-work is an alternative to continued education. We first use event study methods to clarify trends in wages and skill premia. We then decompose influences on upper secondary school enrolments from income growth, demographic change, and skill premia. We find that the college skill premium has a positive influence on enrolments, whereas the premium from upper secondary completion has no significant effect. Our conclusions explore implications for future productivity growth as well as economic and educational policies.
Topic:
Education, Labor Issues, Human Capital, Productivity, Skills, and Competition
Political Geography:
Vietnam and Southeast Asia

6. Global Value Chain Participation and Labour Productivity in Manufacturing Firms in Viet Nam: Firm-Level Panel Analysis

Author:
Upalat Korwatanasakul and Tran Thi Hue
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study describes the status of global value chains (GVCs) in Viet Nam and examines the roles of GVC participation and technology in enhancing labour productivity in manufacturing firms. The estimation method is a panel fixed-effect regression employing unique firm-level data matching the Vietnam Technology and Competitiveness Survey and Vietnam Enterprise Survey, 2009–2018. The findings show the positive effect of backward GVC participation when considering firm GVC participation status (i.e. whether they engage with backward linkages). However, when accounting for GVC participation degree (i.e. GVC participation index), the results show a stark contrast, revealing the negative effect of backward GVC participation on labour productivity. The results, therefore, partly reject the learning-to-learn hypothesis. On the other hand, regardless of GVC indicators, forward GVC participation positively impacts labour productivity, confirming the views of learning-by-exporting and learning-by-supplying. The findings also suggest the significance of research and development, digital technology, and foreign investment in enhancing labour productivity. Therefore, policies promoting forward GVC participation should be the priority, while policies to promote backward GVC participation should be well designed and accompanied by policies that ensure technology transfer and domestic technology development to avoid the trap of a subordinate role.
Topic:
Labor Policies, Manufacturing, Industry, Global Value Chains, and Labor Market
Political Geography:
Asia and Vietnam

7. Entry Mode Choice and Performance of Foreign Direct Investment Firms in Emerging Economies: Micro-evidence from Viet Nam

Author:
Linh Bui, Huyen Hoang, and Hang Bui
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Does the right entry mode choice help foreign direct investment (FDI) firms to perform efficiently in emerging economies? This study attempts to answer this question by examining the impact of the entry mode choice made by FDI firms on their post-entry performance in emerging markets. Using a dataset derived from specific firms for the period 2002–2016, this study accounts for the selection biases and inherent differences of FDI firms that affect their selection of entry strategies. The study found that, with regard to the manufacturing sector, the ownership type with a wholly owned subsidiary (WOS) had negative impacts on either the technical efficiency or the total factor productivity (TFP) of firms. Conversely, regarding all sectors in the economy, the WOS is likely to have a positive role on technical efficiency and TFP. It is also interesting to see that for firms with an equity joint venture (EJV) type, the higher proportion of capital contribution from domestic firms might lead to lower technical efficiency and TFP. It implies that the higher degree of management and control by the domestic firms compared with foreign firms would have negative impacts on the EJV firms’ performance.
Topic:
Economics, Foreign Aid, Foreign Direct Investment, and Emerging Powers
Political Geography:
Asia and Vietnam

8. Getting to Grade 10 in Viet Nam: Challenges from Deprivation, Discrimination, and a Booming Job Market

Author:
Ian Coxhead, Nguyen Vuong, and Phong Nguyen
Publication Date:
02-2021
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Viet Nam has enjoyed more than a generation of rapid economic growth, led by labour-intensive exports. This form and pace of growth has increased schooling opportunities, but has also reduced incentives for some students to advance to higher education. We hypothesise that these conflicting influences help explain another puzzle – the relatively slow growth of educational progression to upper secondary school. Slow and unevenly distributed increases in schooling attainment are warning signs for the sustainability of future aggregate growth and for the distribution of growth gains. We use a new data set on participation rates and scores in an exam to enter Grade 10, the first year of upper secondary school, to analyse the variation in test participation rates due to demand- and supply-side factors. The data are drawn from less advanced provinces within Viet Nam. As such, they shed light on the challenges of expanding educational development at the extensive margins of lower socio-economic status and higher grades, especially in areas with large ethnic minority populations.
Topic:
Labor Issues, Employment, Economic Growth, Training, and Job Creation
Political Geography:
Asia, Vietnam, and Southeast Asia

9. Understanding Quality Energy-Related Infrastructure Development in the Mekong Subregion: Key Drivers and Policy Implications

Author:
Han Phoumin, Sopheak Meas, and Hatda Pich An
Publication Date:
03-2021
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Many players have supported infrastructure development in the Mekong Subregion, bridging the missing links in Southeast Asia. While the influx of energy-related infrastructure development investments to the region has improved the livelihoods of millions of people on the one hand, it has brought about a myriad of challenges to the wider region in guiding investments for quality infrastructure and for promoting a low-carbon economy, and energy access and affordability, on the other hand. Besides reviewing key regional initiatives for infrastructure investment and development, this paper examines energy demand and supply, and forecasts energy consumption in the subregion during 2017–2050 using energy modelling scenario analysis. The study found that to satisfy growing energy demand in the subregion, huge power generation infrastructure investment, estimated at around $190 billion–$220 billion, is necessary between 2017 and 2050 and that such an investment will need to be guided by appropriate policy. We argue that without redesigning energy policy towards high-quality energy infrastructure, it is very likely that the increasing use of coal upon which the region greatly depends will lead to the widespread construction of coal-fired power plants, which could result in increased greenhouse gas and carbon dioxide emissions.
Topic:
Development, Energy Policy, Infrastructure, Renewable Energy, and Carbon Emissions
Political Geography:
China, Asia, Vietnam, Burma, Cambodia, Thailand, Southeast Asia, Laos, and Myanmar

10. Enhancing Inter-Firm Linkages through Clusters and Digitalisation for Productivity Growth

Author:
Vo Tri Tranh
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper examines the policies for industrial cluster development in Viet Nam. The first export processing zone was established in 1991. Since 1994, Viet Nam has focused more on developing domestic productive capacity and thus various types of industrial estates were established. The key actors in industrial cluster policy are the government, Prime Minister, ministries, provincial people’s committees, and management boards of industrial and economic zones. The choice of industrial estate is often determined by factors such as geographic location, land, labour, infrastructure, industry, business environment, and incentives. Viet Nam has provided various incentives to industrial estates of various types, but the scope and extent of preferential policy support for firms in general and those operating in industrial and economic zones are rather modest. The industrial estates have contributed significantly to attracting foreign direct investment, to exports, to productivity improvement, etc. Looking forward, Viet Nam needs further efforts on industrial cluster development, including development of statistics, analysis of cluster policy impacts, and provision of FTA-consistent incentives.
Topic:
Development, Industrial Policy, Governance, Leadership, and Management
Political Geography:
Asia and Vietnam