Creating Policy Space For Development: Explaining Vietnam’s Dramatic Shift in Foreign Direct Investment Strategy

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dc.contributor.advisor Kim, SY en
dc.contributor.advisor Chan, G en Truong, Minh en 2017-07-03T04:15:28Z en 2017 en
dc.identifier.uri en
dc.description Full text is available to authenticated members of The University of Auckland only. en
dc.description.abstract Developing countries today face unprecedented challenges to their economic development aspirations. The last two decades have witnessed the proliferation of multilateral rules on trade such as those embodied in the World Trade Organisation, which many view as having a policy-constraining effect on states in the developing world. ‘Climbing the ladder of development’ also requires ever increasing levels of technological knowledge as existing industries are upgraded through higher technologies. Yet, the barriers to technological upgrading grow higher for developing countries, much due to huge spending of global corporations to stay on top of the value chain. In the face of such challenges, some developing countries such as Vietnam has embarked on an economic development strategy reminiscent of now-developed countries such as Taiwan and Singapore, which relies heavily on the inducement of Foreign Direct Investment (FDI), By employing such an approach, the Vietnam state has seemingly transformed itself from being home to largely labour-intensive to increasingly higher-technology manufacturing especially in Information and Communication Technology (ICT) industries. The core question posed in this study is: Why did the Vietnam government actively pursue dramatic increases in inward FDI from the late 1990s? My central argument is that the Vietnam state has used FDI as a means to rapidly increase the technological capabilities of the private sector. In this sense, Vietnam is similar to the examples of successful East Asian countries mentioned above. However, Vietnam’s approach is also driven by domestic political rationales involving the need to weaken the link between the party state and inefficient state-owned enterprises. At the same time, the state is promoting the development of the private sector through creating policy space for technology transfer from multinational corporations. By examining the motivations and mechanisms utilised by the Vietnam state in bringing about a dramatic increase in technology-intensive FDI, I seek to contribute to two debates: (1) the opportunities for developing countries to employ industry policies under conditions of globalisation, and (2) the transferability of the developmental state model to today’s developing countries. en
dc.publisher ResearchSpace@Auckland en
dc.relation.ispartof Masters Thesis - University of Auckland en
dc.relation.isreferencedby UoA99264933413302091 en
dc.rights Items in ResearchSpace are protected by copyright, with all rights reserved, unless otherwise indicated. Previously published items are made available in accordance with the copyright policy of the publisher. en
dc.rights Restricted Item. Available to authenticated members of The University of Auckland. en
dc.rights.uri en
dc.rights.uri en
dc.title Creating Policy Space For Development: Explaining Vietnam’s Dramatic Shift in Foreign Direct Investment Strategy en
dc.type Thesis en Public Policy en The University of Auckland en Masters en
dc.rights.holder Copyright: The author en
pubs.elements-id 634149 en
pubs.record-created-at-source-date 2017-07-03 en

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