This paper analyzes the competitiveness of these firms and the ability to capture more added-values from GVCs. The paper reveals that the comparative advantage of low-cost labor is not sustainable. Thus, for sustain growth and prosperity, Vietnamese footwear manufacturers should find other advantages in manufacturing. | VNU Journal of Science: Education Research, Vol. 32, No. 5E (2016) 55-65 An Analysis of Vietnamese Footwear Manufacturers’ Participation in the Global Value Chain Where They Are and Where They Should Proceed? Hoang Thi Phuong Lan1, Pham Thi Thanh Hong2,* 1 Faculty of International Finance - Academy of Finance, Duc Thang, Tu Liem Dist., Hanoi, Vietnam 2 School of Economics and Management, Hanoi University of Science and Technology, 1 Dai Co Viet, Hai Ba Trung Dist., Hanoi, Vietnam Received 22 November 2016 Revised 05 December 2016, Accepted 22 December 2016 Abstract: Recently, Global Value Chain (GVC) is considered as a key factor impacting on strategies of international firms of all sizes. As firms are considering international trade as an opportunity to increase their sales abroad, some companies actually participate in a GVC in order to gain more added value. In the state of world top 3 footwear manufacturers, Vietnamese footwear producers still face difficulties in capturing more value from GVCs. This paper analyzes the competitiveness of these firms and the ability to capture more added-values from GVCs. The paper reveals that the comparative advantage of low-cost labor is not sustainable. Thus, for sustain growth and prosperity, Vietnamese footwear manufacturers should find other advantages in manufacturing. Keywords: Global value chain, upgrading, value added, comparative advantage. 1. Introduction * fragmentation. Instead of producing a product in a single factory, a company establishes a network of suppliers and contributors in different locations. Each supplier or contributor is in charge of a specific manufacturing phase. In other words, GVCs allow countries to specialize on specific segments of the value chain, instead of having to build a complete value chain locally. Resources can therefore be assigned more effectively to tasks in which the country has a comparative advantage. Technology advances and trade facilitation have allowed companies to .
