Reports
Discussion Papers
No.161 Value Chain Dynamics and Growth of Local Firms: The Case of Motorcycle Industry in Vietnam
by FUJITA Mai
July 2008
ABSTRACT
Vietnam’s burgeoning market for motorcycles has attracted global industry leaders, players from developing countries, and local firms. This has led to a dynamic evolution of value chains. This paper presents an explanation of the varieties of the growth patterns experienced by the local suppliers, focusing on the roles of customer and local supplier strategies. Case studies showed that while the role of customers may be important, strategies of suppliers to improve the competitive edge in the production of motorcycle components and to diversify into other products account for important variations of growth trajectories among local suppliers. Findings presented in this paper suggest the need to direct more attention to strategy that local firms use to boost their competitive edge in business.
Keywords: local suppliers, motorcycle industry, value chains, Vietnam
JEL classification: L22, L62, O33
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.