Hitoshi Sato, Senior Research Fellow, Institute of Developing Economies, JETRO
Production fragmentation has become a global trend in recent decades. Observers now claim that participating in a global value chain (GVC) is crucial for a country's economic development. However, local firms in developing countries still tend to find it difficult to participate in global production networks, and it may not be clear how local workers benefit from these networks.
This session explores the mechanism of the GVC participation of firms from the perspective of firms' management practices, using the results from a survey of Vietnamese firms. Special attention will be given to human resource management (HRM) practices, such as compensation, recruitment, and job training, to capture the effect of globalization on workers at the firm level. In addition, the effectiveness of government support for firms' activities to improve their employees' skills will be discussed.