Foreign Direct Investments by Japanese Manufacturers in Vietnam - Domestic Management and Collaboration

This research has described and explored the collaborative relationships between foreign direct investments by Japanese manufacturers in Vietnam and domestic suppliers, how the investors manage domestic factories is also discussed. The theories of multinational enterprises, strategic alliances, and supply chain models are linked into a single structure, and a specialist questionnaire is utilized to establish a complete evaluation framework for foreign direct investments by Japanese manufacturers in Vietnam in order to examine the effect of the relationships and domestic management. The research has examined the domestic management of the employees. According to this empirical analysis, foreign direct investments by Japanese manufacturers in Vietnam plays an important place on domestic management, however, at present, implementing domestic management is difficult, especially on human resource management. The main factor is that training domestic employees, especially managers, takes time, and it is hard to integrate Japanese and Vietnamese cultures within just a few years. Moreover, firms strive to collaborate with domestic suppliers in order to gain sources of competitive advantage, but the services and technologies of domestic suppliers must be improved.