Technical Efficiency of Vietnamese Manufacturing Firms and Its Determinants A Preliminary Analysis

• Main Author: Vu, Thi Bich Lien
• Other Authors: 2012 JSPS Asian CORE Program, Nagoya University and VNU University of Economics and Business
• Format: Article
• Language: English
• Published: Đại học Kinh tế 2016
• Subjects: technical efficiency; production frontier; Vietnamese manufacturing industries; spillover effects
• Online Access: http://repository.vnu.edu.vn/handle/VNU_123/14262
• Institution: Vietnam National University, Hanoi

This paper estimates stochastic production frontiers separately for foreign-invested, state-owned and private firms of the Vietnamese manufacturing industries during the period 2000-2009. The result shows that private firms' technical efficiency is, on average, the highest of the three groups of firms in most years. If we look at determinants of their technical efficiency, private firms are found to benefit from production activities of foreign-invested firms until 2008, while state-owned firms are not. This implies that those private manufacturing firms in Vietnam have been able to imitate/absorb new production technologies from foreign firms. In 2009, however, the private firms also start losing their market power to the foreign firms as the state-owned firms have experienced. Moreover, there is environmental spillover effect on technical efficiency of the domestic private firms in most of years, and of the foreign firms and state-owned firms in some certain years.