Abstract
International technology transfer can be implemented through various channels such as transfer agreement, technology and equipment import, foreign direct investment, etc., in which foreign direct investment is considered the most important strategic channel. Technology transfer through foreign direct investment is a cost-effective solution and appropriate with countries that have limited resources like Vietnam. The purpose of the research is to examine the overall picture of international technology transfer through foreign direct investment in Vietnam and a more in-depth investigation into the successful Taiwanese story of Sanyang Industry Co., Ltd investment in Vietnam. The ultimate research goal is to find out a model of successful international technology transfer (ITT) in the manufacture sector, its impacts on the technology levels and business activities of the recipients as well as identify issues and challenges in the international technology transfer process. The research has taken an insightful analysis of technology transfer between Sanyang Industry Co., Ltd and its Vietnamese partner, Vietnam Manufacturing and Export Processing Co., Ltd (VMEP), to see technology transfer channels, process and its impacts on the businesses as well as on technology learning capability in foreign owned company. The results indicates that international technology transfer advances the technology learning in VMEP in terms of production technology level, advanced technology and equipment acquisition, quality products and services, management practices. The case study also revealed some policy and managerial implications for supporting international technology transfer in Vietnam. This research study may be of importance in drawing out experience and lessons for other technology transfer in the future. Recommendations for future studies are to expand the scale and depth of the research.