Internal linkage in Vietnam’s business groups

Abstract

Internal linkage within a business group has been playing an important role in the performance of each business group itself in particular as well as the development of the economy in general. In Vietnam, the internal linkage within business groups developed in the mid of 1990s. After one decade, this linkage has greatly improved via applying market-based principles to linkage of mechanism and manner. This has brought remarkable results, especially the performance efficiency of the whole business groups. However, the internal linkage of Vietnam’s business groups still has many limitations compared with that of business groups in developed and ermerging economies. In this article, some key aspects of internal linkage in business groups (including state and private business groups) in Vietnam will be examined. After that, some recommendations will be raised to help take advantages of internal linkage within business groups.