Globalization and Vulnerability: The Effects of the Global Recession on Income and Female-Headed Households in Vietnam

Scott R. Sanders, Brigham Young University
Alex Currit, Brigham Young University

Over the past 20 years, Vietnam’s economic growth centered on foreign direct investments (FDI) and an export-led growth model. The massive expansion of FDI related industries resulted in the rapid development of the national economy, as well as a significant increased in household income throughout Vietnam. However, with the onset of the global recession, risk adverse investors withdrew substantial amounts of FDI from Vietnam. This loss of FDI negatively affected the national economy, and caused the growth household income to stall and in some cases decline, with female-headed households particularly harmed. Thus while reliance on FDI provides an economic boon, it also greatly increases the vulnerability of the same populations who rely on it as they are more fully exposed to the fluctuations of the global market. This research seeks to understand how this connection to the global market through FDI fueled growth effects household income across the global recession.