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https://doi.org/10.62836/emi.v5i3.0021
Nguyen, T. K. H. (2026). Driving Mechanisms and Industrial Outcomes of Inward Chinese FDI in Vietnam’s High-Tech Sectors under RCEP: Evidence from Electronics Manufacturing and Solar-Photovoltaic Supply Chains. Economics & Management Information, 5(3), 0021. https://doi.org/10.62836/emi.v5i3.0021
Volume 5, Issue 3, September 2026
Copyright (c) 2026 Thi Khanh Huyen Nguyen
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This work is licensed under a Creative Commons Attribution 4.0 International License.

Driving Mechanisms and Industrial Outcomes of Inward Chinese FDI in Vietnam’s High-Tech Sectors under RCEP: Evidence from Electronics Manufacturing and Solar-Photovoltaic Supply Chains

Intensifying US-China trade tensions and the January 2022 entry into force of RCEP have together spurred a wave of supply-chain relocation. For many Chinese manufacturers, this has translated into a “China-Plus-One” production strategy, with Vietnam emerging as a primary destination. This paper investigates driving forces and industrial outcomes of inward Chinese FDI in Vietnam’s high-tech sectors, focusing on electronics manufacturing and solar-photovoltaic supply chains for the period 2018–2024. Drawing on secondary datasets including Vietnam General Statistics Office (GSO), UN Comtrade, and peer-reviewed working papers, this study calculates Vietnam’s Revealed Comparative Advantage (RCA) for HS 85 (electrical-electronic goods) and HS 8541 (semiconductor and photovoltaic products). Our results show RCA values of 2.88 for HS 85 and 8.44 for HS 8541 in 2022, demonstrating strong but assembly-driven export competitiveness. Firms backed by inward Chinese FDI generate roughly 75% of Vietnam’s solar-panel exports and employ half of the workforce in this sector; nevertheless, domestic localisation in electronics remains merely 5–10%. Despite strong export performance, Vietnam remains heavily dependent on imported Chinese intermediate inputs, exposing its solar exports to US trade-remedy risks. This paper offers targeted policy recommendations for Vietnamese regulators and Chinese investors, alongside limitations rooted in publicly available secondary data.

RCEP inward Chinese FDI revealed comparative advantage Vietnam electronics industry solar-photovoltaic supply chains

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Supporting Agencies

  1. Funding: This research received no specific grant from any funding agency in the public, commercial, or not-for-profit sectors.