Foreign Business Assessment 21 (2012) 508–517
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Worldwide Business Review
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Equity-based entry modes of the Greater Chinese Economical Area's overseas direct investments in Vietnam
Bih-Lian Shieh a, *, Tzong-Chen Wu b, 1
Graduate student Institute of Management, National Taiwan School of Science and Technology, 18 Farrenheit., No . some, Sec. one particular, Chung Hsiao W. Street, Taipei 90, Taiwan, ECUEIL Department of Information Management, National Taiwan University or college of Research and Technology, No . 43, Sec. 4, Keelung Road, Taipei 106, Taiwan, ROC
Received 21 August 2010
Received in revised form 23 May 2011
Accepted 2 June 2011
In January 2007, Vietnam became the 150th member of the World Operate Organization (WTO). Vietnam is situated in the cardiovascular system of Asia and has a resource-rich overall economy, which offers it a signiﬁcant advantage in attracting foreign direct purchases (FDIs). The investigation focuses on equity-based entry mode choices used by multinational corporations (MNCs) in the Better Chinese Financial Area (GCEA) for going into Vietnam. The statistical effects indicate that equity-based entry modes are signiﬁcant when FDI ﬁrms entering Vietnam originate from the GCEA, consisting of Mainland China and tiawan, Hong Kong, Taiwan, and Singapore. However , the interaction outcomes show that industry does not have a moderating effect on the relationship among location and entry function, whereas it is far from found that industrial group is speciﬁc to any 1 location. The generalized style has implications for the theoretical and managerial points of views of the two host plus the home countries.
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1 . Introduction
Ethnic Oriental communities have already been increasingly expressing interest in the multinational businesses (MNCs) in the world economy (Ahlstrom, Chen, & Yeh, 2010; Zeng & Williamson, 2007). Most existing researches in international business literatures describe the entry-mode decisions of MNCs in developed countries, from the point of view of the two home countries of parent or guardian ﬁrms and host countries, with respect to overseas direct purchases (FDIs). In this instance, both the house and the number countries consist of developing countries. Our research concerns FDIs from the Increased Chinese Financial Area (GCEA) in Vietnam, which signiﬁcantly contributes to the overall literature in FDI. The GCEA consists both the physical and social clusters from the Chinese traditions, which include Mainland China, Hk, Macau, Taiwan, and Singapore. China ﬁrst resolved to convert their centrally prepared socialist economy into a market-driven one in 1978. The web host country, Vietnam, has been initiating a series of economical reforms since 1986; it has been rather good in attracting FDI. According to a statistics report unveiled by the Thai government, Vietnam's State Banking companies provided approximately $19 billion dollars in financial loans to the economy in 2009, which is equivalent to around oneﬁfth from the country's annual gross household product (GDP). Vietnam gives a subsidized interest rate to financial institutions for endorsing enterprises and export businesses.
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0969-5931/$ – see front side matter ß 2011 Elsevier Ltd. All rights appropriated. doi: 12. 1016/j. ibusrev. 2011. 06. 001
M. -L. Shieh, T. -C. Wu as well as International Organization Review twenty one (2012) 508–517
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