Factors influencing the participation of Vietnamese enterprises in global value chains: insights from automobile production and assembly, electronics and textile industries

Abstract

This study aims to examine factors influencing global value chain position of enterprises from main industry sectors of Vietnam. In order to attain such objectives, the panel data analysis was conducted based on 208 observations from 52 enterprises in the automobile production and assembly, electronics and textile industries during the 2016 to 2020 period. The multiple linear regression model is utilized to analyse the factors influencing the participation of such industry sectors in the global value chain. The results indicate that technological capability has the most significant positive influence on the participation of Vietnamese enterprises in the global value chain, followed by FDI and business size. In contrast, the factor of business age does not seem to have a discernible effect. These findings bring some policy implications on the improvement of the country's position in the global value chain, focusing on selected industries including automotive, electronics and textile.