Abstract
Abstract The study purpose is to measure the performance of the Vietnamese garment and textiles industry by means of the Negative Malmquist model using the data envelopment analysis (DEA) method. The empirical results presented the efficient, inefficient cases, and average efficiency for all garment and textile companies in Vietnam during from 2016 to 2020. The main findings determined that five companies, including HTG, TET, MSH, M10, and BDG possessed efficiency scores in whole terms. An overall picture of the garment and textiles industry in Vietnam is used to evaluate the operational process. The research recommends a feasible alternative method to deal with inefficient cases.
Highlights
Significant improvements in regional economy and social development are fundamental strengths necessary to boost the growth rate of the garment and textiles industry
The minimum value of current assets (CA), noncurrent assets (NA), owner's equity (OE), RE, and net profit after tax (NP) during the period from 2016 to 2020 was 17459; 40355; 68452; 22683; and -32216, respectively. These values indicated that all input and output values were suitable for inclusion into the negative Malmquist model in the data envelopment analysis (DEA) method
The Vietnamese garment and textiles industry presents a marked variation in its operational performance from 2016 to 2020, as conducted by the negative Malmquist model
Summary
Significant improvements in regional economy and social development are fundamental strengths necessary to boost the growth rate of the garment and textiles industry. This is as true worldwide as it is in Vietnam. The negative Malmquist model is proposed to calculate the efficiency of the Vietnamese garment and textiles companies because this model can deal with the presence of negative data. It can present the unlimited efficiency score with effective terms of decision-making units (DMU) in which determines separate efficiency in every term of each DMU.
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