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Review of Economic Perspectives

Národohospodárský obzor; The Journal of Masaryk University

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Volume 16, Issue 3


Technical efficiency of FDI firms in the Vietnamese manufacturing sector

Hoang Duong Vu
  • Student at Faculty of Management and Economics, Tomas Bata University in Zlin Viet Nam
  • Researcher at Vietnam Institute of Economics, Vietnam Academy of Social Sciences, Viet Nam
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Published Online: 2016-10-13 | DOI: https://doi.org/10.1515/revecp-2016-0013


The study examines technical efficiency of Foreign Direct Investment (FDI) firms in the Vietnamese manufacturing sector by applying stochastic production frontier model and making use of cross-sectional data in the period 2009-2013. The average level of technical efficiency of FDI firms is about 60% and it is higher than that of domestic firms (including private firms and state-owned firms). In addition, the study also analyses correlation between technical efficiency of FDI firms and other factors. It finds that there are positive correlations between FDI technical efficiency and net revenue per labour, firm’s age or export activities in 2013. However, the study is unable to find evidence of a relationship between FDI technical efficiency and infrastructure or firm’s investment activities.

Keywords: FDI; Stochastic production frontier; Technical efficiency; Vietnam


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About the article

Received: 2016-02-26

Accepted: 2016-07-29

Published Online: 2016-10-13

Published in Print: 2016-09-01

Citation Information: Review of Economic Perspectives, Volume 16, Issue 3, Pages 205–230, ISSN (Online) 1804-1663, DOI: https://doi.org/10.1515/revecp-2016-0013.

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© by Hoang Duong Vu. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License. BY-NC-ND 4.0

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