Productivity Spillover from FDI to Domestic Firms across Six Regions in Vietnam

The article uses the latest firm-level data in Vietnam, from 2011 to 2015, to find fresh evidence on productivity spillovers from foreign direct investment across six regions in Vietnam. The finding indicates negative horizontal spillover as the most dominant channel in all regions. The positive backward spillover is compensated for by the large magnitude of negative horizontal and forward spillovers. Besides, absorptive capability really matters in productivity spillovers. Furthermore, total factor productivity growth at domestic firms within 100 sq. km. of foreign capital-intensive and administrative centers is similar to that of external firms under the effects of productivity spillover.