Author(s)

Le Nu Minh Phuong

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The paper aims at analyzing general characteristics of the plastic sub-sector in Ho Chi Minh City (HCMC), in-depth quality assurance (QA) implication in the sub-sector, how plastic manufacturers use business development services to improve QA and which QA variables are strongly affected export involvement. Author’s survey had assessed to plastic manufacturers and service suppliers to determine the position of demand and supply, then find the potential improvement in BDS market for both demand and supply size. To recognize the attitude of plastic manufacturers in terms of QA awareness and identify the difficulties and weakness of service suppliers are formulated the general picture of QA in plastic sub-sector. The binominal logit model is used to assess the influence of explanatory variables, which are mainly concerned QA variables, on the probability that firm involve in international market. Our econometric analysis indicates that quality assurance level, automatic level, source of machine and ratio of quality assurance personnel are positively significant for the likelihood of international business. Interestingly, non-export group are likely to use quality assurance business development services rather than export group. QA business development services attract more concern for donors and government due to low value added for plastic exporters’ use.

Quality Assurance, Business Development Services, Small and Medium Enterprise, Export Orientation, Plastic Sub-Sector

L. Phuong, "Effect of Quality Assurance (QA) BDS on The Export Activities of SME in The Plastic Sub-Sector," iBusiness, Vol. 3 No. 4, 2011, pp. 345-352. doi: 10.4236/ib.2011.34046.