[New book] Light Manufacturing in Vietnam

The current growth model of Vietnam is grounded in the state-owned sector and in an emphasis on quantity rather than quality to drive economic progress based on low-cost labor and the assembly of products for export. Economic growth has been slowing since the global financial crisis of 2008–2009, and macroeconomic vulnerabilities are evident. The old model has run its course.

 

In this context, a book entitled "Light Manufacturing in Vietnam" has been published by the World Bank. The book has been prepared by a team led by Mr. Hinh T. Dinh. Economists and researchers from Economica Vietnam also contributed significantly in the preparation of the book.

"Light Manufacturing in Vietnam" argues that to return the economy to a path of rapid economic growth and to create quality jobs will require a structural transformation that can lift workers from low-productivity agriculture and the mere assembly of imported inputs to higher-productivity activities.

Based on a wide array of quantitative and qualitative techniques, "Light Manufacturing in Vietnam" identifies key constraints on manufacturing growth in Vietnam and evaluates differences in firm performance between China and Vietnam.

 

The book relies on detailed value chain analyses that were carried out in five industries at the core of the Vietnamese light manufacturing sector: agribusiness, leather, wood processing and wood products, metal products, and apparel. Based on these analyses, "Light Manufacturing in Vietnam" proposes concrete policy measures to help policy makers identify, prioritize, and resolve the most serious constraints in these specific light manufacturing industries.

Please click here to download the book. It can also be downloadable from the WorldBank’s Open Knowledge Repository and the Resource Centre of Economica Vietnam website.

Economica Vietnam is looking forward to receiving comments relating to this book so that we can further improve our work in the future.  If you have any question for us, do not hesitate to get in touch by contacting our email: contact@economica.vn.

 

Thank you very much.

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[Paper] An overview of the non-farm household business sector

 Khái quát về kinh tế hộ cá thể phi nông nghiệp tại Việt Nam

Businesses in Vietnam take the form of State-owned Enterprises (SOEs), Private Sector Enterprises, Foreign Invested Enterprises (FIEs), Cooperatives (often generally translated as collectives), and non-farm Household Business (HHB). Having never been taken to the spotlight but non-farm Household Businesses have proven to be one of the mainstays of the Vietnamese Economy. In the last few years when economic difficulties have hit hard the country, non-farm HHBs have again proven its strong vitality.

In difficult time, it is this business sector that has played the role as the mainstay for the economy, especially in terms of job creation and providing the much-needed income for the people of lower quintiles. Non-farm HHB is a typical feature of Vietnam’s economy and has a longer history of development than any other types of formal enterprises. Non-farm HHB sector continues to provide million of jobs and contribute greatly to economic growth and poverty reduction in Vietnam. However, unlike SOEs or bigger private sector enterprises (especially those in property and financial and banking sectors), these tiny business entities are not benefiting from any bailout measures from the Government. They even do not have an association to clamor for one.

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