FDI spillover effects on Vietnam textile enterprises

Textile industry is evaluated as potential production and development to bring major benefits to the economy as well as long term ahead. Thus, attracting FDI in the textile sector is a necessity, and especially to take advantage of the positive spillover effects brought by FDI requires Government agencies and ministries of the direction our country should have the appropriate policies. The fact that over time, companies in Vietnam in general and in particular textile companies have been strong promotion activities to attract FDI to boost export export products to the world market. Attracting FDI in the textile mills, fiber, clothing apparel is increasing, particularly from investors in Asia such as Hong Kong, China, Taiwan. and investors from EU and U.S. Thus, it can be stated that the study, assess the status of the spillover effect of FDI in the textile sector, Vietnam as well as providing solutions and appropriate policies to eliminate the inadequacies and shortcomings in investment market, while encouraging FDI in Textile sector is really very important and urgent, help with a more intuitive view on this issue, since it can implement the objectives and strategies set out. Thesis address the following issues: 1) Verify the location, the important role of the textile sector and the urgency of attracting FDI into Vietnam Textile enterprises; 2) The system of reasoning about the spillover effects of FDI on domestic firms, differentiate and deepen the 8-channel transmission spillover effects of FDI on domestic firms in general and for the Textile Enterprise particular. These include: Six channels of FDI spillover effects resulting horizontal (spillover effects of FDI in the sector) and two transmission channels of FDI spillover effects of vertical (inter-industry spillover effects of FDI). The thesis also shows the impact of the competitive effects of FDI on domestic firms. 3) Analyze and assess the status of the spillover effect of FDI to Vietnam Textile enterprises. At the same time, by applying the econometric model, the two methods: (i) sale of parameters, (ii) the estimated effect and random effect estimates, the thesis shows experimental evidence for that have negative spillover effects of the presence of FDI firms in the sample of firms. This is reflected in the negative coefficients and statistical significance of each variable in the Horizontal DN. This result implies that the presence of FDI firms have reduced productivity growth of domestic firms Textile due to competitive effects . However, for each group of enterprises of all sizes will have different effects. Specifically: (i) For the group of micro-scale enterprises are strongly influenced by the effect of competition; (ii) The group companies are small and medium scale, the spillover effect is positive vertically down dimensional and have a negative spillover effect horizontally; (iii) as for large-scale enterprise group, there is no horizontal spillovers and no vertical spillover effects, are not affected downsize business by FDI enterprises, can simultaneously be active materials, not to cooperate with companies that may Textile FDI direct cooperation with overseas parent companies to buy raw materials.