By Tetsushi Sonobe, Keijiro Otsuka
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They often have relatives working as traders overseas. Despite the fact that unregistered workshops cannot by law directly import material and export products, they tend to sell their products directly to these traders, with some help from registered companies, which are responsible for paperwork such as dealing with customs offices and payment through companies’ foreign bank accounts. The smaller workshops export their products only through traders located in Hanoi. The relationship between these smaller workshops and traders is one of arm’s length transactions.
7, may indicate that the ability to export largely determines the enterprise size. In other words, we believe that, as the quality of the products is improved, the propensity to export becomes an important determinant of the enterprise size. 6 Sweater a Average per enterprise, and prices are deflated by price index of garment products from the General Statistics Office of Vietnam, base year 1995. indd 27 9/30/2010 12:18:32 PM 28 Cluster-Based Industrial Development Thus, it seems reasonable to postulate the following hypothesis: Hypothesis 2-2: In an export-oriented village industry, managerial human capital of the managers and their personal ties with overseas Vietnamese traders, Vietkieu, contribute to upgrading and increased exports of products.
Subcontractors are households who specialize in either knitting or fabricating. According to a local government official, there are about 60 subcontractors specializing in fabricating, and all of them are located in the village. They have only five to ten fabricating machines on average and hire workers from surrounding villages. These subcontractors receive putting-out orders from unregistered workshops. Sometimes they receive orders directly from registered companies in the busy season from March to September.