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This study investigates the optimum size for manufacturing firms and the impact of subcontracting on firms' likelihood of achieving their optimal scale in Vietnam.

Using data from the enterprise census in 2017 and 2021, the paper first estimates the production function to identify the optimum firm size for manufacturing firms and then, applies the logit model to investigate factors associated with the optimal firm size.

The study reveals that medium-sized firms exhibit the highest level of productivity. Nevertheless, a consistent trend emerges, indicating that nearly 90% of manufacturing firms in Vietnam operated below their optimal scale in both 2017 and 2021. An analysis of the impact of subcontracting on firms' likelihood to achieve their optimal scale emphasizes its crucial role, especially for foreign firms, exerting an influence nearly five times greater than that of the judiciary system.

The paper's findings offer crucial policy implications, suggesting that initiatives aimed at enhancing the overall productivity of the manufacturing sector should prioritise facilitating contract arrangements to encourage firms to reach their optimal size. These insights are also valuable for other countries with comparable firm size distributions.

This paper provides the first empirical evidence on the relationship between firm size and productivity as well as the role of subcontracting in firms' ability to reach their optimal scale in a country with a right-skewed distribution of firm sizes.

This paper aims to explore how the three components of intellectual capital (IC) (human, structural and relational) are related to corporate innovation and how effective knowledge management can improve business performance, innovation and environmental compliance. Additionally, the study investigates the influence of environmental compliance on overall business performance.

The organizational resource-based view was used to develop a theoretical model and accompanying hypotheses. A survey design approach was used to collect data and evaluate the model. The predicted relationships were tested by structural equation modeling using data acquired from members of management teams in the Vietnamese manufacturing sector.

The three components of IC have significant positive effects on business performance. In addition, corporate innovation, knowledge management success (KMS) and environmental compliance all significantly increase business performance. Moreover, KMS indirectly enhances business performance through innovation and environmental compliance.

This study provides useful insights into knowledge management, innovation and environmental compliance for administrators, practitioners and scholars. The results support practical advice for how firms can integrate KMS strategies into their operations, improve environmental compliance and increase business success.

The links between IC, knowledge management, innovation and environmental compliance are of ongoing interest to organizational scholars. However, empirical research on the relationships of these factors with business performance has been limited. This study investigates these links and offers factual evidence for them.

The purpose of this paper is to analyse the relationship between foreign direct investment (FDI) inflows and economic growth with a special focus on the institutional environment at the state level. FDI-led economic growth and economic growth-led FDI have two dominant theoretical foundations, but empirical research supports contradictory findings. These perspectives largely ignore the institutional environment, assuming institutions to be background information.

To examine the causal relationship between FDI, the Granger causality method has been used. The impact of FDI inflows and other institutional factors on economic growth has been examined using the panel data regression method. The principal component analysis (PCA) method has also been used to develop indexes for some variables.

Results indicate a two-way Granger causality between FDI inflows and economic growth at the state level. Infrastructures, education expenses, labour availability and gross fixed-capital formation (GFCF) are positive and significant determinants, whilst corruption and FDI inflows are leaving negative impact on state-wise economic growth.

This study contributes to the body of the literature in four different ways: first, it empirically examines the trends and patterns of subnational FDI inflow and economic growth disparity in India; second, it examines the causality between FDI and economic growth. Third, with the institution-based paradigm in international business, it investigates how institutional variables affect the expansion of the economy. Fourth, it extends prior research by examining the link at the state level using a large panel data set made up of 29 states and 7 union territories (UTs) over the years 2000–2019.

This study examines the evidence of the impact of climate change on the financial performance of basic materials companies in Vietnam.

The research sample includes eighty-two basic materials companies listed on the Vietnamese stock market from 2003 to 2022. This study used one-way and two-way fixed-effects feasible generalized least squares (FGLS) estimation methods.

Climate change, measured through variables including changes in temperature, average rainfall, greenhouse gas emissions and rising sea levels, has a negative impact on the financial performance of companies in this industry. The study also found that, with rising temperatures, the financial performance of steel manufacturing companies decreased less than that of coal mining and forestry companies, but increasing greenhouse gases and rising sea levels reduced the financial performance of steel companies. We did not find evidence of any difference in the impact of climate change on the financial performance of basic materials companies before and after the UN Climate Change Conference (COP 21). This is a new finding, which is consistent with empirical studies in Vietnam and different from previous studies in that it provides new evidence on the impact of climate change on the financial performance of basic materials companies in the Vietnamese market and cross-checks the impact of climate change by sector and over time.

To the best of our knowledge, this is one of the first articles on climate change and the financial performance of basic materials companies.

This paper aims to examine spillover effects of heterogenous foreign direct investment (FDI) enterprises (domestic vs. export-oriented) through horizontal and vertical linkages and absorptive capacity effect on domestic firms' total factor productivity (TFP). It clarifies the spillover effect on domestic firms in accordance with industrial zones, business size, technology sector and geographical agglomeration, respectively.

The dataset used is based on Vietnamese manufacturing firms during 2011–2014, input–output (I–O) Table 2012. This paper is conducted in two steps: (1) TFP is estimated by using a semi-parametric approach developed by Levinsohn and Petrin (2003); (2) Regression with panel data for domestic firms, applying the fixed effect method.

In terms of domestic-oriented FDI (DFDI) enterprise group: TFP spillover through horizontal linkages is found negative for domestic firms but positive for those participating in export. Additionally, backward linkages have a negative impact on TFP for most domestic enterprises, except for those operating in the high-tech sector. In terms of export-oriented FDI (EFDI) enterprise group, horizontal linkages have a negative impact on domestic firms' TFP including domestic ones participating in export whereas backward linkage is an important channel with positive effects. Absorptive capacity enables firms to improve productivity through linkages with EFDI and DFDI enterprises. Exporters located in industrial zones or regions with numerous exporters can receive better impacts through backward linkages EFDI.

Comprehensively, this is the first paper to detect FDI heterogeneity in their behavior when entering a developing country like Vietnam. The added value in this study comes from the export ability of local firms which is in line with Melitz (2003) theory that they can excel in absorping the TFP spillover from competing with DFDI competitors or from supplying to EFDI enterprises. Moreover, the role of small and medium-sized enterprises (SMEs), low technology, high technology and learning by regions affecting the impact through both horizontal and vertical linkages are included for analysis.

This study aims to examine the export competitiveness of Vietnam’s apparel sector by identifying the precise product categories that create its comparative advantage.

Revealed comparative advantage (RCA) and normalized revealed comparative advantage (NRCA) form the research methodology, and the RCA/NRCA values are calculated for the 2011–2020 period.

In total, 29 out of 34 product categories at four-digit levels and 65 out of 217 subcategories at six-digit levels elicited a consistent export comparative advantage throughout the 10-year study timeframe. The study also identified 13 subcategories at six-digit levels, which indicated 10 consecutive years of relative disadvantages.

The study’s findings have far-reaching implications for economic policy, development strategies and global economic integration. By providing a nuanced understanding of a country’s export strengths in the international apparel trade, this study offers valuable guidance for informed decision-making at various levels. The findings will serve as a significant source of information for policymakers and help them formulate novel policies aiming to diversify Vietnam’s apparel product offerings and export destinations. The results will also inform the government regarding the industry’s potential and attract necessary support, enabling it to grow further. This study reveals patterns in Vietnam’s apparel trade but does not provide insights into the underlying causes of comparative advantage.

The study provides an in-depth overview of Vietnam’s comparative advantages and disadvantages at two-, four- and six-digit harmonized system levels and helps understand Vietnam’s apparel export competitiveness.

This study aims to present the results of a comparative study on the most key reasons for the failure of sustaining activities of operational improvement (OI) methodologies from the different types of manufacturing enterprises that located in Vietnam.

This study presents survey results from 30 local manufacturing enterprises and 21 foreign direct investment (FDI) enterprises located in Vietnam – a developing country. The authors utilize a combination method to collect data, including online and direct survey. The targeted interviewees selected to answer the questionnaire are manufacturing managers and top managers working in productivity, quality, engineering and other departments in respective firms. The developed questionnaire is verified by five experts to ensure the validity and soundness.

The study uncover that 21 local enterprises (70%) have not issued standard forms for OI deployment and supervision, while 17 foreign enterprises (81%) have adopted a systematic management and clearly indicators for evaluation of OI outputs. In addition, the top three reasons for OI failure are differences between local and foreign enterprises. In term of OI methodologies, most of participated enterprises implemented Lean tools and principles while only 7.8% of the participated enterprises applied Six Sigma. Three vital findings are uncovered, including, first, 30% of local enterprises standardize and supervise forms of OI.

There is a limitation in sample size, with the number of participants of 51 enterprises. Among the participants, 27% of local enterprises are small and medium-sized enterprises (SMEs) while 60% of FDI enterprises from large-sized group. This was limited to making a generated conclusion in the comparison of failure factors between two types of enterprises. This partly affects the radical comparison of failure factors between local and FDI enterprises.

To the best of the authors' view, this is the first empirical study that compares the reasons for the failure for sustaining OI between local and foreign enterprises in a developing country. The result from this study will make contributions for further research in considering OI failure factors and then enhance effectiveness of OI methodologies in manufacturing companies.

The purpose of the article is to contribute to the body of research on digital transformation among members of the supply chain operating in an emerging economy. This paper researches the digital transformation trends happening across Vietnamese supply chains, by investigating the current adoption rates, predicted impact levels and financial investments being made in key Industry 4.0 technologies.

By using a semi-structured online survey, the experiences of 281 supply chain professionals in Vietnam were captured. Subsequently, statistical techniques examining variances in means, regression analysis and Monte Carlo simulation were applied.

The findings of this study offer a comprehensive understanding of Industry 4.0 technology in Vietnam, highlighting the prevalent technologies being prioritized. Big data analytics and the Internet of things are expected to have the most substantial impact on businesses over the next 5–10 years and have received the most financial investment. Conversely, Blockchain is perceived as having less potential for future investment. The study further identifies several technological synergies, such as combining advanced robotics, artificial intelligence and the Internet of things to build effective and flexible factories, that can lead to more comprehensive solutions. It also extends diffusion of innovation theory, encompassing investment and impact considerations.

This study offers valuable insights into the impact and financial investment in Industry 4.0 technologies by Vietnamese supply chain firms. It provides a theoretical contribution via an extension of the diffusion of innovation theory and contributes toward a better understanding of the current Industry 4.0 landscape in developing economies. The findings have significant implications for future managerial decision-making, on the impact, viability and resourcing needs when undertaking digital transformation.

The coronavirus disease (COVID-19) pandemic has been negatively affecting international trade between countries; however, there is a lack of empirical studies on developing countries such as Vietnam. This article aims to investigate how the COVID-19 cases and related deaths and policy response by Vietnam and trading partners to the pandemic affect Vietnam's export activities.

The authors use the monthly trade data from the General Department of Vietnam Customs and employ the Poisson pseudo-maximum-likelihood (PPML) estimator to empirically investigate the effects of COVID-19 and policy response to the pandemic on Vietnam's exports at aggregate and sectoral levels over a 33-month period.

In the first year of the pandemic (January–December 2020) as well as the whole study period (January 2019–September 2021), trading partners' COVID-19 burden adversely affected Vietnam's aggregate exports, and the effect of COVID-19 deaths is significantly larger than that of COVID-19 cases. In the first year of the pandemic, estimates show a negative effect of Vietnam's COVID-19 cases on its exports, while no evidence reveals the impact of Vietnam's COVID-19 deaths. However, during the entire study period, there are remarkable adverse effects of Vietnam's COVID-19 deaths on its exports. The effect of the COVID-19 burden in Vietnam and in its trading partners differs significantly across major subsectors. In the first year, there is a positive role of government response to the pandemic by Vietnam and its trading partners in Vietnam's aggregate exports, while in the whole study period, only a positive effect of Vietnam's government response is found. Economic support and free trade agreements (FTAs) have a positive effect on Vietnam's exports. In the first year of the pandemic, Vietnam's export losses due to COVID-19 outweighed its export gains from the pandemic. However, Vietnam's exports have significantly improved over the nine months of 2021.

Efforts should aim to reduce the number of COVID-19 deaths rather than focus on reducing the number of COVID-19 cases. The application of stringency measures by both exporters and importers should be minimized, or at least those measures need to be combined with health methods, such as testing policy and contact tracing, short-term investment in healthcare and especially investments in vaccines. In addition, economic support, particularly debt relief, needs to be widely applied to assist firms, especially those involved in international trade. The expansion of FTA networks and diversifying export destinations may be helpful in maintaining production networks and export activities.

In the long-term period, the application of stringency measures by both exporters and importers should be minimized, or at least those measures need to be combined with health methods such as testing policy and contact tracing, short-term investment in healthcare and especially investments in vaccines. In addition, economic assistance, particularly debt relief, needs to be widely applied to assist firms, especially those involved in international trade activities.

To the best of the authors’ knowledge, the paper is among the first studies empirically investigating the impacts of COVID-19 and policy response to the pandemic on aggregate and sectoral exports from Vietnam. The paper also measures the absolute value of export gain and export loss due to the pandemic between Vietnam and trading countries.

This study addresses the empirical results of the spillover effect with export as the primary economic activity that enhances local businesses' total factor productivity (TFP). A learning mechanism is expected to be generated and used as the basis for the policy implication.

This study adopted the Cobb–Douglas function and multiple estimation approaches, including the generalized method of moments, the Olley–Pakes and the Levinsohn–Petrin estimation techniques. The findings were estimated based on the panel data of a Vietnamese local businesses survey conducted by the General Statistics Office of Vietnam (GSO) from 2010 to 2019.

The results showed that the highest TFP belongs to the businesses in the Southeast region, the Mekong Delta region, the mining industry and the foreign-invested enterprises. The lowest impacted TFP are businesses in the Northwest region and agricultural, forestry and fishery sectors. In addition, the estimated results also show that the positive spillover effect on TFP is shown through forward and backward linkage. The negative spillover effect is expressed through the backward and horizontal channels.

This study offers original empirical evidence on the learning mechanisms via which exports contribute to productivity improvement in a developing Asian economy, so making a valuable contribution to the existing academic literature in this domain. The findings of this research make a valuable contribution to the advancement of understanding on the many ways via which spillover effects manifest such as horizontal, forward, backward and supplied-backward linkage.

The study's findings indicate that it is advisable for governments to give priority to the development and improvement of forward and supply chain linkages between exporters and local suppliers. This approach is recommended in order to optimize the advantages derived from export spillovers. At the organizational level, it is imperative for enterprises to strengthen their technological and managerial skills in order to efficiently incorporate knowledge spillovers that originate from overseas partners and trade counterparts.

This study sheds new evidence on the export spillover effect on productivity in emerging economies, with Vietnam as the case study. The paper contributes to the research's originality by adopting novel methodological aspects to estimate local businesses' impact on total factor productivity.

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-05-2023-0373