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http://dx.doi.org/10.13106/jafeb.2020.vol7.no11.1033

Analysing Productivity Change in Vietnamese Garment Industry Using Global Malmquist Index  

MAI, Thanh Khac (Faculty of Management and Finance, Vietnam Maritime University)
NGUYEN, Van (Faculty of Fundamental Science, Vietnam Maritime University)
VU, Trang Huyen Thi (Department of Mathematics, Thuongmai University)
Publication Information
The Journal of Asian Finance, Economics and Business / v.7, no.11, 2020 , pp. 1033-1039 More about this Journal
Abstract
Vietnam is conducting an export-led growth model and labour-intensive industries contributing majorly to the total export value. In the context of Industry 4.0, the labour-based industries are significantly affected; hence, enhancing productivity is the key measure to maintain these industries. The garment industry contributes significantly to the total export value of Vietnam. Based on meta-frontier framework, the approach of data envelopment analysis is used to measure technical efficiency of Vietnamese garment firms and the global Malmquist TFP index is utilised to identify productivity change and its components including efficiency, technology and technical gaps between different groups of firms. The data of Vietnamese garment firms from 2013 to 2018 collected from the Vietnam General Statistic Office is used in this study. The results show that: (i) The total factor productivity of Vietnamese garment firms growth, technical progress is the main contributor; (ii) The private garment sector is the leading group; (iii) There is a large technological gap among Vietnamese garment sectors. The private and FDI garment firms have experienced a growth in all components of total factor productivity change. Meanwhile, technological progress change is the main reason to constrain the productivity growth of state-owned garment firms.
Keywords
Data Envelopment Analysis; Global Malmquist Total Factor Productivity Index; Meta-Frontier; Technical Efficiency;
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