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Technical Efficiency of Industrial State‐Owned Enterprises in Vietnam
Author(s) -
Vu Quoc Ngu
Publication year - 2003
Publication title -
asian economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.345
H-Index - 28
eISSN - 1467-8381
pISSN - 1351-3958
DOI - 10.1111/1351-3958.00163
Subject(s) - ho chi minh , state owned , work (physics) , business , industrial organization , process (computing) , state (computer science) , technical progress , economics , economic system , market economy , engineering , macroeconomics , mechanical engineering , algorithm , socioeconomics , low income , computer science , operating system
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.