ABSTRACT
In this chapter, we wish to draw a picture of Vietnam within the global transnational corporations ʼ(TNCs) value chain. TNCs; activities have increased substantially over the past few decades, and integration of Vietnam within these activities has deepened, together with the flows of foreign direct investment (FDI) going into the country. Rapid changes occur in the geographical location of production. For many developing countries, hosting FDI may be a powerful engine for development. Countries are therefore increasingly concerned about their competitive position within the world production map. It is essential to understand where firms locate particular activities and why they choose one site over another. Host countries also need to understand how firms ʼglobal and regional production strategies impact upon their national economies. Because Vietnam is located in the Association of Southeast Asian Nations (ASEAN) region, one key additional aspect to be considered is therefore the role played by the region in the firmʼs strategic location decision. This chapter was written to analyse TNCs ʼactivities and how Vietnam is integrated into these global, regional and national strategies. South-East Asia has now become a major manufacturing site for many TNCs in numerous industries. Vietnam can benefit from the experience of its neighbour countries. In line with global trends, Vietnam has recently reduced barriers to trade and investment, and is part of the AFTA agreements. This will continue to help the country being part of the internationalisation of production.
