The East Asian Industrial Policy Experiences: Implications for Vietnam

Hong Duc Pham ,Kenichi Ohno ,Manh Dung Tran

doi:10.7176/ejbm/11-33-08

Abstract

This paper offers an overview of East Asian industrial policies with special focus on small and medium enterprises (SME) development and linkage policy in an attempt to assess the relevance of their experiences for the contemporary Vietnam. At first, economic performance and policy quality of selected countries are reviewed. Following that, international policy comparison and key issues relevant to Vietnam’s SMEs development and linkage policy are discussed and policy implications for Vietnam are made. Among them are capacity building with a reasonable scope and patience, scaling up by national ownership and selective industrial policy. Keywords: Industrial policy, Small and medium enterprises, Linkage, Asia, Vietnam DOI : 10.7176/EJBM/11-33-08 Publication date: November 30 th 2019

Highlights

A number of East Asian countries like Japan, Taiwan, and Singapore are regarded as primary examples of countries that have derived great benefits from increasing integration with the international economy, without surrendering national autonomy in the economic or cultural spheres, by pursuing decidedly policies with respect to the industrial development (Noland and Howard, 2005)
Thai effort is continuing and even producing some good results, but impact could have been greater if more resources were mobilized and greater policy attention was paid. In advanced economies such as Japan, Taiwan and Singapore, linkage policy is no longer a key component of industrial policy because business networking is the responsibility of private firms which are sufficiently global and competitive
Learning from foreign experiences should not mean copying policies adopted in some East Asian country at some point in time to Vietnam without considering the Vietnamese local context

Summary

Introduction

A number of East Asian countries like Japan, Taiwan, and Singapore are regarded as primary examples of countries that have derived great benefits from increasing integration with the international economy, without surrendering national autonomy in the economic or cultural spheres, by pursuing decidedly policies with respect to the industrial development (Noland and Howard, 2005). Indonesia, a lower middle income country, has many shortcomings in FDI, SMEs, linkage, technical and vocational education and training (TVET), supporting industry, industrial zone, and other industrial policy components which are continuously criticized by domestic and foreign investors.

Results

Conclusion