The exporting and subcontracting decisions of Viet Nam's small- and medium-sized enterprises

Abstract

The exporting and subcontracting decisions of a panel of Vietnamese private small- and medium-sized enterprises is investigated. We find that among subcontractors, subcontracting is a supplementary rather than primary activity; the propensity to export increases with managers' or owners' knowledge of customs law; and, there is some evidence that subcontractors are more likely to have made product improvements while exporters are more likely to have adopted new processes or technologies. Our study provides useful insights into SME exporting and subcontracting strategies made more relevant by the expected reductions in trade costs associated with the World Trade Organization's Trade Facilitation Agreement.