Performance of Foreign Investment Enterprises in developing economies: the case of Vietnam Redux
DOI:
https://doi.org/10.14456/tresp.v6i2.249122Keywords:
Foreign investment enterprises, capital and investmen, entrepreneurship, domestic reform and economic integration, business and trade policyAbstract
The paper studies the growth and performance of foreign investment enterprises in developing countries in the context of global economic integration, financial crises and domestic reform with a focus as a case study on Vietnam with its official updated business survey data. A SUR mixed micro and macro model of enterprise performance is constructed to provide empirical findings and evidence-based policy implications on the role of capital, labour, investment, monetary and development policy, entrepreneurship, and legal reform in this important private sector’s performance. The findings show the importance of employment, global crises, entrepreneurship and especially beneficial legal reform in assisting these enterprises’ performance as measured by high profitability per capital invested and per enterprise turnover. Openness in particular helps the dominantly high performance of joint ventures.
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