Entry Mode Choice of FDI Firms in Emerging Markets: An Evidence from Vietnam

The purpose of this article is to analyze and explain the entry mode choice of foreign investors when entering Vietnam. One reason for the difficulties of previous research in entry mode topics is the lack of data since data regarding FDI firms are rather difficult to collect. Using a unique data of...

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Bibliographic Details
Published in:Emerging markets finance & trade 2021, Vol.57 (1), p.76-84
Main Authors: Nguyen, Minh Ha, Binh, Quan Minh Quoc
Format: Article
Language:English
Subjects:
Emerging markets
entry model
joint venture
type of market entry
Vietnam
wholly owned subsidiary
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Summary:The purpose of this article is to analyze and explain the entry mode choice of foreign investors when entering Vietnam. One reason for the difficulties of previous research in entry mode topics is the lack of data since data regarding FDI firms are rather difficult to collect. Using a unique data of 5236 foreign firms who made investments in Vietnam during the period from 2005 to 2016, this study contributes to the overall understanding of entry mode choice in emerging markets at firm level. The statistical results indicate that type of ownership, industry sector, and investment capital are positively associated with Equity Joint Ventures (EJV) and negatively with its Wholly Owned Subsidiaries (WOS) choices. In addition, project orientation, project duration, adjustment of project scale, investors from Africa and Latin America, and year of project establishment variable influence positively the MNE's WOS choice and negatively its EJV choice.
ISSN:1540-496X
1558-0938
DOI:10.1080/1540496X.2018.1496423