Position of Vietnam in global value chains: an empirical approach Online publication date: Mon, 19-Dec-2022
by Nguyen Viet Khoi; Shashi Kant Prasad Chaudhary
International Journal of Value Chain Management (IJVCM), Vol. 13, No. 4, 2022
Abstract: The participation of Vietnam in global value chains has increased significantly in recent decades. This paper aims to analyse the ways in which Vietnam has connected to the international production network and how such connectivity has affected the position of its industries in global value chains (GVCs). The methodology used in this paper has three components: the measure of the GVC participation index, the measure of the GVC position index, and the estimation of the positions of industries on a smile curve. In addition, we use the 'distance to final demand' approach by Fally (2012) to define the 'GVC position index'. Our analysis indicates that Vietnam specialises in middle-stream activities, including the assembly of computers and electronics, textiles and footwear, food and beverages, electrical machinery, and other processed products. We also discuss how Vietnam is participating in global value chains and how it can perform better in the future.
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