Performance of the Vietnamese Automobile Industry: A Measurement Using DEA

Asian Journal of Business and Management, Volume 2, Issue 3, June 2014

8 Pages Posted: 6 Sep 2014 Last revised: 26 Sep 2014

See all articles by Thanh Ngo

Thanh Ngo

Massey University - School of Aviation

Duc-Hiep Tran

Vietnam National University (VNU) - VNU University of Economics and Business

Date Written: June 1, 2014

Abstract

In Vietnam, the automobile industry was seen as a very important sector of the economy. This paper studies the efficiency and productivity change of the Vietnamese automobile industry during the 2004-2007 periods, employing the Malmquist - Data Envelopment Analysis approach. For the best of our knowledge, this is the first study to do so. Our findings showed that efficiency of the Vietnamese automobile firms were low, with the highest average score of 0.500 in 2007. Major issues concerning inefficiency in the industry related to a big waste in using capital resources and thus, the actual turnovers were far less than its capability. By utilizing their production capacity, automobile firms in Vietnam could increase their productivity; however, its speed was decreased. Since technology could affect capacity utilization, it could be better for Vietnam to focus on this issue with preference.

Keywords: automobile industry, Vietnam, data envelopment analysis, performance

Suggested Citation

Ngo, Thanh and Tran, Duc-Hiep, Performance of the Vietnamese Automobile Industry: A Measurement Using DEA (June 1, 2014). Asian Journal of Business and Management, Volume 2, Issue 3, June 2014, Available at SSRN: https://ssrn.com/abstract=2491970

Thanh Ngo (Contact Author)

Massey University - School of Aviation ( email )

United States

Duc-Hiep Tran

Vietnam National University (VNU) - VNU University of Economics and Business

E4 Building
144 Xuan Thuy - Cau Giay - Hanoi
Hanoi
Vietnam

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