Author(s): Nguyen Thi Thuy Vinh, Pham Thu Huong , Phan The Cong
The paper investigates the impact of characteristics of FDI firms on building a relationship with domestic suppliers in Vietnam, especially, differences between Japanese FDI firms and other FDI firms in Vietnam. Using General Statistics Office’s (GSO) survey on FDI manufacturing sector in three years, from 2015 to 2017, the authors found that: (1) Domestic suppliers are less likely to be selected by FDI firms if they are wholly-foreign firms or export-oriented firms; (2) Domestic suppliers are inclined to be chosen by other foreign investors rather than Japanese FDI firms; (3) However, on the other hand, when being selected by Japanese FDI enterprises as their suppliers, Japanese FDI enterprises tend to establish long-term relationships compared to other foreign investors.