By Tetsushi Sonobe, Keijiro Otsuka

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It is extremely important to recognize that family production units can become workshops and that informal workshops can become formal sector companies in the process of cluster development. 1 that a greater number of new enterprises were set up before 2000 than after 2000. The entry of new subcontractors was particularly active in the early period, but it then gradually declined and was followed by the entry of new unregistered workshops, and more recently by registered companies. Since 2001, eight new registered companies, whose managers are all returned overseas Vietnamese, have entered the industry.

7, there was a sharp decline in the production of trousers over time, while the production of sweaters increased rapidly. indd 26 9/30/2010 12:18:32 PM Overseas Vietnamese Traders 27 than doubled since 2000. A similar shift in product composition also occurred in the domestic market. This shift reflects the trend towards producing higher-quality products in Laphu. In addition, the average real price of sweaters has increased from 2000 to 2005. The rate of increase in the domestic price has been greater than that in the export price.

Findings in columns (1)–(4) support Hypothesis 2-1. Specifically, the coefficients of manager’s years of schooling are positive and highly significant at the 1 percent level. Moreover, these coefficients become larger over time. 19 billion VND in 2005. 43 in 2005. 59) 136 (8) 2005 Sweater revenue (Tobit) Numbers in parentheses are t-statistics calculated on heteroskedasticity-robust standard errors for regressions of value added and total revenue and z-statistics for regressions of export revenue and sweater revenue.

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