Volume 29, Issue 3
DOI: 10.24205/03276716.2020.739
Market Development and Performance of Vietnamese Subsidiaries in China
Abstract
Foreign direct investment has always played an important role in China's economic development, but what is lacking is its uneven distribution among Chinese provinces. In addition, a series of national policy implementations and program improvements have effectively promoted the development of different regions, making China's economic market development more diversified. Then these evidences provide a good theoretical basis for this article to analyze how market development contributes to foreign subsidiaries in emerging markets. The empirical results in this article are based on data from Vietnamese subsidiaries in China. A Chinese manufacturing company suggested that emerging markets should abandon obscure and inefficient intervention systems to attract foreign investment in China. In addition, protecting intellectual property rights is an effective strategy to send signals to multinational enterprises, which can properly safeguard their core benefits in emerging markets.
Keywords
emerging markets, foreign subsidiaries, market developments, performance.