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
• A long term investment by a non-resident entity
• Exerts substantial management control
• 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
• 2 databases
World Investment Report, 2013 (UNCTAD)
fDi Markets
• Period under study (2003-12)
• FDI– Mergers & Acquisitions (Purchase/sale of
existing equity)
&
Greenfield Investments (New investments)
18. GFDI IN VIET NAM
(MANUFACTURING VS. TEXTILES)
JOBS CREATED – 583, 520
19. POLICY RECOMMENDATIONS
• Garment and Textiles – High employment
generating sector
• FDI will add to the capital of the countries
• Required for investment, new technology,
research and best practices
• Supportive policies required – reduce regulation,
bureaucracy, improve absorptive capacity
• Border Area Promotion – Complementary Factor
Endowment
• Reduce Service Link Costs