Managing Technological Development: A Study of Vietnam’s Telecommunication Goods Industry

Abstract

ABSTRACT This paper examines Vietnam's international trade competitiveness in the telecommunication goods industry. Comparing Vietnam's performance to those of its more advanced ASEAN-3 rivals (Indonesia, Malaysia, and Thailand), the paper argues that Vietnam has overcome its initial technological backwardness. Nevertheless, Vietnam's continued ability to climb the technological ladder depends on the efficacy of its industrial policy as well as the vitality of its overall science and technological base. To this end, Vietnam should implement a more robust industrial policy to fully realize its current advantage in the telecommunication goods industry. It should “push” its cohort of state-owned enterprises to climb the technological ladder by tying state support to their export performances. In addition, Vietnam needs to strengthen its overall science and technological base. It would do well by investing in research and development activities, and cultivating a larger share of tertiary graduates in engineering and other technological fields.