Political ties and performance of multinational corporations in Vietnamese emerging market

Local governments play a key role in attracting foreign investment and the operations of multinational corporations (MNCs) in Vietnam, yet limited research has focused on the emerging issues in this context. This study adopted a mixed-methods approach. Representatives of MNCs in Ho Chi Minh City and four provinces participated in this research. Partial least squares structural equation modelling was used to analyze the data and test the model. The results reveal both direct and indirect relationships between political ties, institutional support, opportunity recognition and firm performance. Recommendations for the local governments are discussed in detail.