Technical Efficiency of Industrial State-Owned Enterprises in Vietnam

Author: Vu, Quoc Ngu

Source: Asian Economic Journal, Volume 17, Number 1, March 2003 , pp. 87-101(15)

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Abstract:

Measured among themselves, industrial state-owned enterprises (SOE) in Vietnam have recorded a rather high level of technical efficiency, as well as a moderate improvement in technical efficiency between the 1997 and 1998. Of the possible factors, the share of skilled workers, location in Ho Chi Minh City (formerly Saigon) and engagement in export activities were considered the most important in determining the technical efficiency level. Between 1997 and 1998 there was no evidence of technological progress. For the ongoing SOE reform process in Vietnam, attention should be given to improving the skills of the work force and to encouraging the export-led development strategy. Creating a competitive envir-onment and a fully developed system of market-supporting institutions is also highly needed. In addition, it is necessary to invest in new technology for industrial SOE in Vietnam.

Keywords: economic reform; industrial state-owned enterprises; stochastic frontier; technical efficiency; Vietnam

Document Type: Research article

DOI: http://dx.doi.org/10.1111/1351-3958.00163

Affiliations: 1: National Centre for Development Studies, The Australian National University

Publication date: 2003-03-01