Backward and forward linkages for vietnam economy

Backward linkage (BL) and forward linkage (FL) in Input-Output analysis has been widely used in many countries to measure the importance and level of influence of an industry on others and the whole economy. The objective of this paper is to examine the production structure of Vietnam economy by using the result of input-output table for 2012 based on two methods developed by Rasmussen and Ghosh. The results show that oils and fats processing, dairy, meat processing and fish processing sectors are those with the largest BL that need to be selected to implement demand stimulus policies. Dairy, basic metals, other chemicals, oils and fats processing sectors are those with the largest FL that need to be selected to implement investment policies.Oils and fats processing, yarn and other fibers, textiles, paper products, petroleum products, other chemicals, basic metals, metal products, machinery are key sectors in Vietnam.