Vietnam has been a popular place for Taiwanese businesses to invest in lately. Vietnam¡¦s economy has been growing since implementing a reform policy called ¡§Doi Moi¡¨ (renovation) in 1986. Vietnam is an emerging market and attracts more and more Taiwanese multinational enterprises (MNEs) to engage in foreign direct investment (FDI). Taiwan plays an important role in FDI in Vietnam and is the third biggest investing country there, only behind South Korea and Singapore.
The purpose for this research is to investigate what determinants would influence Taiwanese MNEs¡¦ when deciding between joint ventures (JVs) and wholly owned subsidiaries (WOS) when they enter the Vietnamese market. According to the literature review of the resource based view, the eclectic theory, transaction cost theory and institution theory, the framework is developed by two dimensions, parent company¡¦s advantages and environment in the host country. The independent variables under this framework are R&D intensity, firm size, international experiences, debt ratio, ROA, Vietnamese government¡¦s restriction and Vietnamese economy. Through secondhand data, Taiwanese MNEs investing Vietnam were sampled for this research. By the Pearson¡¦s correlation coefficient and the binary logistic regression, hypotheses were tested by which independent variables had significant correlation to the dependent variable, the investment decision (JVs or WOS).
The findings of this study reveal that when a Taiwanese parent firm has a lower debt ratio it would be more likely to invest in Vietnam by WOS. Also, Taiwanese MNEs would tend to invest there by WOS when the economy in Vietnam becomes better. But the rest of the variables do not have significant correlations with the investment decision in this research. The result of this study can offer a reference for companies wanting to enter the Vietnamese market in the future.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0730108-104803 |
| Date | 30 July 2008 |
| Creators | Wu, Chia-hui |
| Contributors | none, none, Cher-Min Fong |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | English |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0730108-104803 |
| Rights | not_available, Copyright information available at source archive |
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