Reports
Discussion Papers
No.097 Local Firms in Latecomer Developing Countries amidst China's Rise -The case of Vietnam's motorcycle industry-
by FUJITA Mai
March 2007
ABSTRACT
This
paper
examines
the
impact
of
China’s
recent
rise
on
the
development
of
local
firms
in
latecomer
developing
countries.
Based
on
a
detailed
analysis
of
Vietnam’s
motorcycle
industry,
the
paper
argues
that
China’s
impact
may
go
beyond
what
a
trade
analysis
suggests.
Indeed,
China’s
rise
induced
a
dynamic
transformation
in
the
structure
of
value
chains
within
Vietnam’s
motorcycle
industry,
bringing
about
far-reaching
consequences
on
the
development
and
upgrading
trajectories
of
local
firms.
The
implications
of
the
case
study
for
the
wider
“global
value
chain”
approach
is
also
discussed.
Keywords:
global
value
chain,
motorcycle
industry,
Vietnam,
China,
upgrading
JEL
classification:
F23,
L22,
L62
Please note that discussion papers are works in various stages of progress and most have not been edited and proofread and may contain errors of fact or judgment. Revised versions of these papers may subsequently appear in more formal publication series. The views expressed in this publication are those of the author(s). The IDE does not guarantee the accuracy of the data included and accepts no responsibility for any consequences arising from its use.