4. GLOBAL VALUE CHAIN
The value chain describes the full range of activities that firms and
workers perform to bring a product from its conception to end use
and beyond.
R&D
RAW
MATERIAL
COMPONENT
NETWORK
PRODUCTION
NETWORK
EXPORT MARKETING
5. FOREIGN DIRECT INVESTMENT
โข A long term investment by a non-resident entity
โข Exerts substantial management control
โข By either setting up a subsidiary company, acquiring
shares (usually 10% or more as specified by OECD) or
through the formation of a joint venture or
undergoing a merger.
(www.investopedia.com)
6. METHODOLOGY
โข 2 databases
๏ฑ World Investment Report, 2013 (UNCTAD)
๏ฑ fDi Markets
โข Period under study (2003-12)
โข FDIโ Mergers & Acquisitions (Purchase/sale of
existing equity)
&
Greenfield Investments (New investments)
18. GFDI IN VIET NAM
(MANUFACTURING VS. TEXTILES)
JOBS CREATED โ 583, 520
19. POLICY RECOMMENDATIONS
โข Garment and Textiles โ High employment
generating sector
โข FDI will add to the capital of the countries
โข Required for investment, new technology,
research and best practices
โข Supportive policies required โ reduce regulation,
bureaucracy, improve absorptive capacity
โข Border Area Promotion โ Complementary Factor
Endowment
โข Reduce Service Link Costs