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The Rise of Local Assemblers in the Vietnamese Motorcycle Industry: The Dynamics and Diversity of Industrial Organization

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Vietnam’s Economic Entities in Transition

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Abstract

In the late 1990s, the Vietnamese motorcycle industry faced the typical problems of an import-substituting industry. A limited number of foreign manufacturers producing high-priced, sophisticated products virtually monopolized a small market behind high tariff walls. In less than a decade, however, the industry emerged as the fourth largest in the world only after China, India, and Indonesia (Fujita 2011). The industry has been known as the only import-substituting industry in Vietnam that has successfully achieved high levels of product quality and international competitiveness (Ohno 2005: 47). It is also a success in the sense that some motorcycle manufacturers achieved local content ratios as high as 90% (The Motorbike Joint Working Group 2007: 49–50).

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Fujita, M. (2013). The Rise of Local Assemblers in the Vietnamese Motorcycle Industry: The Dynamics and Diversity of Industrial Organization. In: Sakata, S. (eds) Vietnam’s Economic Entities in Transition. IDE-JETRO Series. Palgrave Macmillan, London. https://doi.org/10.1057/9781137297143_6

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