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Difference in the role of public governance for enterprises performance of ownership types in Vietnam
Ist Teil von
Applied economics, 2023-02, Vol.55 (7), p.750-763
Ort / Verlag
London: Routledge
Erscheinungsjahr
2023
Link zum Volltext
Quelle
Taylor & Francis
Beschreibungen/Notizen
This paper aims to examine the difference in role of public governance on the performance of each business ownership type in Vietnam. Using FGLS regression and Blinder - Oaxaca decomposition methods, the study finds out gaps of enterprises performance among state-owned enterprises, non-state enterprises and FDI enterprises in Vietnam in the period 2016-2019. The variation is due to business characteristics and distinction between ownership types. Besides, the decomposition results show that public governance is a factor of the enterprises performance's differentiation in Vietnam, and state-owned enterprises are often more favoured than FDI enterprises and non-state enterprises. Incentives for state-owned enterprises are mainly presented in policies, such as information public and transparency, reducing time-cost, reducing informal charges and local fair competition promotion. Meanwhile, incentives for FDI enterprises are mainly presented in policies, such as land policy, information public and transparency, reducing time-cost, fair competition promotion, business support services, local legal frame and security. Specifically, the study implies that improving public governance in Vietnam in the period 2016-2019 has resulted in positively effect on state-owned enterprises' performance and fairly low effect on those of FDI enterprises and non-state enterprises.