FDI spillovers in Vietnam: the overall view of transferring channels, and internal characteristics and international trade policies of domestic firms

Abstract

The study used a panel data of unlisted Vietnam manufacturing enterprises over the period 2011-2015 surveyed by General Statistic Office (GSO) to investigate the channels by which foreign direct investment firms help raise the productivity of domestic firms in Vietnam. We estimate spillovers that occur within an industry and between different industries, whether a technology gap between foreign and domestic firms is a limiting or facilitating factor for technology spillovers. The heterogeneity of domestic firms, namely absorptive capacity, technology level related to foreign firms, market share, financial development and international trading policies of domestic firms, has been examined.