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Light manufacturing in Vietnam : creating jobs and prosperity in a middle-income economy

Light Manufacturing in Vietnam makes the case that, if the country is to continue along a rapid economic growth path and create jobs, it must undertake a structural transformation that can lift workers from low-productivity agriculture and the mere assembly of imported inputs to higher-productivity activities. Vietnam needs to address fundamental issues in the manufacturing sector that, until now, have been masked by economic growth.

The book shows that there is a dichotomy between domestic enterprises and foreign-invested enterprises. The smaller domestic firms are not integrated with the dominant state-owned enterprises and foreign-invested firms through forward or backward links in the use of domestically produced inputs or intermediate products. Growth in the domestic light manufacturing sector has arisen from the sheer number of micro and small enterprises rather than from expansion in the number of medium and large firms. As a consequence, final products have little value added; technology and expertise are not shared; and the economy cannot move up the structural transformation ladder. This structure of production is one of the reasons Vietnam's rapid process of industrialization over the last three decades has not been accompanied by a favorable trade balance.

Policy measures to address problems in competitiveness in Vietnam must confront the dual structure of the light manufacturing sector, while raising the value added in the industry. To this end, measures must be taken to nurture the expansion of small informal domestic firms into medium and large enterprises while helping these firms to achieve greater productivity through trade integration. This will require improvements in labor skills and technology and in the quality and variety of products able to compete with imports.

Based on this analysis, Light Manufacturing in Vietnam proposes concrete policy measures to increase employment and spur job creation by addressing sector-specific constraints. The book presents a set of practical recommendations for policy makers to identify, prioritize, and remove the most serious constraints in each sector.

This book will be valuable for policy makers, entrepreneurs, workers, professional economists, and anyone interested in economic development, industrialization, and the structural transformation of Vietnam and developing countries more generally.

 

  • Author: Dinh,  Hinh T.
  • ISBN 13:  9781464800344
  • Publisher:  Washington, DC : The world Bank
  • Date published: 2013
  • Page: 131 p.
  • Local: 02041001485   338.476709597 DIN 2013
  • Phòng DVTT KHTN & KHXH-NV - Kho Nhân văn tham khảo