An Analysis of Vietnamese Footwear Manufacturers’ Participation in the Global Value Chain Where They Are and Where They Should Proceed?
Main Article Content
Abstract
Recently, Global Value Chain (GVC) is considered as a key factor impacting on strategies of international firms of all sizes. As firms are considering international trade as an opportunity to increase their sales abroad, some companies actually participate in a GVC in order to gain more added value. In the state of world top 3 footwear manufacturers, Vietnamese footwear producers still face difficulties in capturing more value from GVCs. This paper analyzes the competitiveness of these firms and the ability to capture more added-values from GVCs. The paper reveals that the comparative advantage of low-cost labor is not sustainable. Thus, for sustain growth and prosperity, Vietnamese footwear manufacturers should find other advantages in manufacturing.
Keywords:
Global value chain, upgrading, value added, comparative advantage.
References
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[2] ADB, Asian Development Outlook 2014 update Asia in Global Value Chains, ADB, 2014.
[3] UNCTAD (2002), “Trade and Development Report, 2002”, United Nation NewYork
[4] Dinh Truong Hinh, Light manufacturing in Vietnam, World Bank, 2013.
[5] APICCAPS, World Footwear 2012, APICCAPS, 2012.
[6] Schmitz Hubert, “Learning and Earning in Global Garment and Footwear Chains”, The European Journal of Development Research, 18 (2006) 4.
[7] Schmitz Hubert, “Responding to global competitive pressure: Local co-operation and upgrading in the Sinos Valley, Brazil”, IDS Working Paper 82, 1998.
[8] Nguyen Thi Tue Anh, “Impact of foreign investment to Vietnam’s economic development”, CIEM and SIDA, 2006.
[9] Tran Dinh Thien, “Vietnamese Economy 2014: The effort for escaping from the bottom line”, Social Sciences Publishing House, 2015.
[10] Kernaghan Charles, A race to the bottom - Trans-Pacific Partnership and Nike in Vietnam - A race to the bottom - TPP & the Quintessential case of Nike in Vietnam, Institute for Global Labour and Human Rights, USA, 2015.
[11] Rao J Raghava, “High End Leather Processing”, CSIR - CLRI Initiatives in the Twelfth Five year Plan, 2010.
[12] Henrik Isakson, Adding value to the European Economy, Kommerskollegium National Board of Trade, Stockholm, 2007.
[13] Daria Taglioni, Deborah Winkler, Making global value chains work for development, World Bank, 2014.
[14] GDS, The Value Chain and Feasibility Analysis; Domestic Resource Cost Analysis. Vol. 2 of Light Manufacturing in Africa: Targeted Policies to Enhance Private Investment and Create Jobs, World Bank Washington, DC., 2011.
[15] Gary Gereffi, John Humphrey and Timothy Sturgeon, “The governance of global value chains”, Review of International Political Economy, 12 (2005) 1.
[16] San Ngoc, “The pie of 5 billion US dollar domestic market: Footwear enterprises are neglecting”, CafeF http://cafef.vn/vi-mo-dau-tu/mieng-banh-5-ty-usd-noi-dia-doanh-nghiep-da-giay-dang-bo-quen-20150724170733177.chn, accessed at 15/7/2016
[17] Giang Tu, “Struggling with input sources”, VCCI - Vietnam Business Forum Magazine http://vccinews.com/news_detail.asp?news_id=33671, accessed at 15/7/2016
[18] VIRAC, Vietnam Leather and Footwear Comprehensive Report, Q2/2016, Vietnam Industry Research and Consultant JSC, 2016.
[19] Randelli Filippo, “The role of leading firms in the evolution of SMEs clusters: evidence from the leather products cluster in Florence”, University of Florence, Department of Economics, Italy, 2013.
[20] Ari Van Assche, Global Value Chains and the Rise of a Supply Chain Mindset, HEC Montreal, 2015.
[21] ITC, Trade Competitiveness Map http://tradecompetitivenessmap.intracen.org/TP_TP_CI.aspx?RP=004&YR=2015, accessed at 12/5/2016.
[22] OECD-WTO: Trade in Value Added http://stats.oecd.org/BrandedView.aspx?oecd_bv_id=tiva-data-en&doi=data-00648-en, accessed at 12/5/2016.
[23] UN Comtrade Data https://comtrade.un.org/pb/CommodityPagesNew.aspx?y=2014, accessed at 12/5/2016.
[24] UNCTAD, Tracing the value-added in global value chains: Product-level case studies in China, United Nation NewYork and Geneva, 2015.
[25] World’s Richest Countries http://www.worldsrichestcountries.com/top_footwear_exporters.html, accessed at 15/7/2016.