Vietnam Market Research Articles

Firm characteristics and corporate governance of state-owned enterprises: An analysis of an emerging market

This paper explores the relationship between firm-level factors and the quality of corporate governance of state-owned enterprises (SOEs) in an emerging economy, namely Vietnam. We employ a self-built corporate governance index (CGI) for SOEs and conduct an empirical analysis of data from 113 listed SOEs on the stock market of Vietnam from 2016-2020 using a fixed effect model (FEM) as suggested by the Hausman test. We find that firm-level characteristics such as firm age and tangibility of assets as well as macroeconomic factors such as the quality of the business climate and economic growth exhibit a statistically significant correlation with the corporate governance quality of SOEs. On the other hand, there is no established statistically significant relationship between other firm characteristics such as firm size, state ownership, financial leverage, growth opportunities and corporate governance. These results for an emerging economy like Vietnam are novel and provide implications for policymakers, regulators, shareholders and other stakeholders on the possibility of enhancing the quality of corporate governance of SOEs in an emerging market, a critical issue given the increasing role of SOEs in economies. Our research can be improved for future research in a couple of aspects. First, addressing the case of companies that do not disclose their governance practices in annual reports would help enhance the information for the corporate governance index. Second, extending the data to compare listed SOEs with other listed firms would provide a more comprehensive analysis.

Assessing the impact of the European Union-Vietnam free trade agreement on labor market and employment in Vietnam

PurposeThis study investigates the impact of the European Union-Vietnam Free Trade Agreement (EVFTA) on Vietnam’s labor market and employment outcomes, considering the potential distributional consequences across various groups of workers and regions.Design/methodology/approachA comprehensive quantitative framework is employed, combining the gravity model of trade to estimate the EVFTA’s effects on trade flows, the CISAF_M1 model to simulate sectoral employment impacts and econometric models to analyze the effects on wages and decent work. The analysis draws upon a rich dataset spanning the period before and after the EVFTA’s implementation.FindingsThe EVFTA has significantly boosted Vietnam’s exports to the EU, leading to substantial job creation in labor-intensive sectors such as textiles, apparel and footwear. The agreement has also contributed to wage growth and improved access to social insurance for workers in export-oriented industries. However, the impact on other aspects of job quality is less clear. The distributional analysis reveals that the EVFTA’s employment effects have been relatively balanced across gender but have favored younger and less skilled workers as well as those in rural areas.Originality/valueThis study provides a comprehensive and nuanced assessment of the EVFTA’s impact on Vietnam’s labor market, addressing a gap in the literature on the employment effects of new-generation free trade agreements in developing countries. The findings highlight the importance of considering distributional aspects when evaluating the socioeconomic implications of trade liberalization and offer valuable insights for policymakers aiming to promote inclusive growth in the context of deepening international economic integration.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-03-2024-0236

Assesment of quality of Ginkgo biloba extract and dietary supplements in Vietnam market based on flavonol glycoside content and flavonoid ratio

Ginkgo biloba is one of the oldest medicinal herbs in the world. It is commonly used as a dietary supplement to protect against blood circulation disorders, improve memory, and prevent cognitive decline. Currently, Vietnam and other countries have regulations in place to ensure the quality of Ginkgo biloba extract in their pharmacopoeia. In this study, the quality of 11 raw materials and 120 dietary supplement products containing ginkgo extract was evaluated based on flavonol glycoside content and the ratio of component flavonoids. The results revealed a significant number of unsatisfactory samples, highlighting the need for closer monitoring of quality products to protect consumer rights.

Enhancing the sustainable development of investment funds: a study of the stock market in Vietnam

Stock investment funds play an important role in the development of the stock market by creating demand for the market, while increasing the professionalism of market activities. With expertise, the ability to access and process information effectively, investment funds will bring benefits to all participants. The role of stock investment funds becomes even more important in developing countries where market information is often imperfect and the state's warning systems and control capabilities are limited. In Vietnam, the strong growth of the stock market over the past 10 years has been the foundation for the formation and development of stock investment funds. However, Vietnam's fund industry has only started to take shape in the last 5 years. Up to now, there are only 24 domestic closed-end stock investment funds operating on the Vietnamese stock market, with limited size and diversity of fund products compared to the market potential. At the same time, the stock investment funds themselves have not yet promoted their role in attracting investment capital, leading individual investors, and contributing to the stability of the stock market during their existence. Keywords: Investment Fund, Stocks, Vietnam.

The impact of working capital management to profitability of chemicals companies listed on the Vietnamese stock market

Working capital plays an important role in ensuring business continuity. Effective management of working capital will directly affect the success of the business. In contrast, poor management will lead to a lack of financial ability, difficulty in payment, reduced sales leads to reduced profits. This paper examines the impact of working capital management on the profitability of chemical companies listed on the Vietnamese stock market. Data sources used in the analysis are from the financial statements of 32 chemical companies listed on Hanoi and Hochiminh City Stock Exchange form 2019 to 2023. Through the results of SPSS 20, the authors assessed the impact of working capital management to profitability and recommendations to improve working capital management of chemical companies listed on the stock market of Vietnam.

The impact of buying external technology on employment and air quality: an empirical approach in Vietnamese manufacturing SMEs

Purpose The purpose of this paper is to evaluate the current situation of buying external technology in Vietnamese manufacturing small and medium enterprises (SMEs) from 2013 to 2018. This paper also aims to examine the effect of buying technology on employment and environmental quality in Vietnam. Design/methodology/approach External technology purchase and its impact on employment and environmental quality are taken from the Vietnam annual enterprise survey and the using technology in production survey from 2013 to 2018. The estimation is based on a feasible generalized least squares method. Findings This study finds that external technology purchase in manufacturing SMEs increases the employment rate in the industries. External technology purchase in Vietnamese manufacturing SMEs also increases the level of environmental pollution. This is a negative side of purchasing technology for production because if the technology used is old, outdated and of poor quality, it will increase environmental pollution. In addition, the growth in employment increases air pollution. This shows that purchasing advanced technology selectively helps to increase the employment rate in Vietnamese manufacturing sector, which is followed by a positive impact on environmental quality. Research limitations/implications The limitation of this study is that the research period was only investigated from 2013 to 2018 because the General Statistics Office of Vietnam no longer surveys the dataset about using technology in production surveys after 2018. This study has been conducted at the firm level, so results cannot be easily extended to the macroeconomic level, also taking into account the data limitations in terms of sector coverage. Practical implications This paper provides necessary policy recommendations for the government and manufacturing SMEs to solve negative technology issues related to the labour market and air quality in Vietnam. The results are expected to help policymakers in Vietnam propose appropriate national science and technology programmes towards sustainable development in the coming decades. Originality/value This paper focuses on assessing the effects of buying external technology by Vietnamese small and medium-sized manufacturing enterprises on employment and air quality.

Vai trò của Fintech đối với thúc đẩy thị trường trái phiếu xanh hướng tới phát triển bền vững

Developing the green bond market is one of the goals of most countries aiming to achieve sustainable development. The increasingly strong development of financial technology is suggested to have an impact on the green bond market. The article focuses on clarifying the impact of financial technology on the green bond market using qualitative and quantitative research methods. Data collected from ASEAN+3 countries, including Vietnam, from 2011 to 2021 are used for the fixed effects regression method, the random effects regression method, and GLS regression models. The regression results demonstrate that financial technology positively impacts the development of the green bond market. This is the basis for proposing several recommendations for developing financial technology and infrastructure to promote the development of the green bond market in Vietnam.

The Muslim Culinary in Ho Chi Minh City

Ḥalāl food is a common feature in Muslim lives across the world. In Muslim quarters of Ho Chi Minh City, Vietnam, locally-made food products are self-recognized as ḥalāl by the community. Ḥalāl food self-recognition is a tradition that exists within closed Muslim communities based on a process of production and consumption standardized by Muslims alone. However, the urban culinary scene has changed as the Vietnamese government issued policies for enhancing the tourism industry and exhorting Muslim enterprises to produce their typical local products. Using qualitative research methods in combination with document analysis, this article shows the sophisticated and varied culinary trade techniques of the Muslim market in Ho Chi Minh City and Southern Vietnam. Products that are not ḥalāl or that falsely claim to be ḥalāl have been introduced to the market. As a result, the involvement of the local Muslim community in the manufacturing process of these ḥalāl-standardized goods is analysed and examined to prevent the products from falsely claiming to be ḥalāl as well. Cultural aspects of the local Muslim community in food processing of ḥalāl products are often applied in creating tourist products in Muslim neighbourhoods. This research also argues that the market economy in Vietnam brings profits for the country, yet is also challenging for Muslims to produce and consume ḥalāl food.

Lottery Mindsets and the Cross Sectional Returns in the Vietnam Stock Market

Purpose: In this study, we evaluate the relationship between lottery-type stocks and future return in the Vietnam stock market from July 2010 to June 2023. Design/methodology/approach: We employ portfolio-level analysis and firm-level cross-sectional regressions fol-lowing Bali et al. (2011). Findings: We find that the minimum daily return (MINRET) is negative and statistically significant in the cross-sec-tional pricing of stocks. The minimum daily return during the previous month and anticipated stock returns are negatively and significantly correlated, according to portfolio-level analyses and firm-level cross-sectional regressions. However, the maximum daily return (MAXRET) effect is not priced in the Vietnam stock market. These findings hold up under controls for liquidity, skewness, momentum, short-term reversals, size, and book-to-market. Research limitations/implications: This study provides an understanding of the lottery phenomenon in the empiri-cal dimension, especially in the emerging stock market. Originality/value: Importantly, our empirical findings that the MINRET, not MAXRET, effect is strongly exhibited as a lottery-type stock's behavior in the Vietnam market.

Analysis of hydraulic drive circuit selection for a carrot collecting system

Compared to conventional mechanical transmissions, hydraulic transmission has the disadvantage of lower energy efficiency. However, it is widely employed in various working machines such as construction machines, off-road vehicles, forest logging machines, and especially agricultural machinery, owing to its flexibility in design, geometric arrangement, and simplicity in operation. In the development project for carrot harvesting machinery conjugate, hydraulic transmission is the optimal solution for the design and implementation of the carrot collecting roller system. This project is oriented towards achieving a practical result where the system structure is simple and effective, utilising hydraulic components available on the market in Vietnam. Given the myriad of hydraulic transmission circuits available, this paper undertakes an analysis based on numerical simulations of the functionality and energy efficiency of potential system design options and proposes a new practical speed control circuit. This suggested circuit uses a pressure-compensated flow control valve arranged parallel to the hydraulic motor. The study is carried out in the Matlab/Simulink simulation environment, where the circuit models are constructed using hydraulic components with practical parameter settings sourced from component suppliers. The analysis results indicate that the proposed circuit strikes a balance between functionality and economic efficiency.

Vietnamese consumer's perspective on green beauty care products: Exploring the impact of animal welfare concerns and skepticism toward green advertising

Green consumers increasingly consider animal welfare (AW) in their decision-making, demonstrating a growing awareness of ethical considerations beyond conventional environmental concerns. However, with an increase in greenwashing, skepticism has grown among consumers. Regardless of manufacturers' efforts to enhance consumer awareness via green advertising, consumer skepticism toward these advertisements creates doubt and consequently reduces positive attitudes and intentions to buy green products. This study investigated the variables that impact Vietnamese consumers' decision-making processes toward green beauty care products. Specifically, we focused on the role of AW concerns and skepticism toward green advertising. For this study, we adopted the timulus-response organism (SOR) framework, which is known for its ability to analyze the impact of environmental stimuli (S) on personal perceptions (O), leading to specific responses (R). We elucidated the relationship between concern for AW and green advertising skepticism (GAS) as stimulus factors, green brand trust (GBT) and attitude toward green products (ATT) as organism factors, and three sub-dimensions of behavioral intentions (BI): green purchase intention (GPI), word-of-mouth (WOM), and willingness to pay (WPP) as response factors. We explored the mediating effect of ATT on the relationship between GAS-GPI and AW-GPI. This study involved 386 Vietnamese participants surveyed using convenience sampling. Smart PLS v3.2.9 software was used to analyze the data using structural equation modeling. The hypothesis test using PLS-SEM confirmed that (a) GBT had a positive effect on BI and ATT; (b) ATT had a positive effect on BI; (c) GAS had a negative effect on GBT and WPP, but not on GPI and WOM; and (d) AW had a positive effect on GPI and WOM, but not on ATT and WPP. Surprisingly, this study found insufficient statistical evidence to support the mediating role of ATT in the relationship between GAS-GPI and AW-GPI. This study highlights the importance of integrated advertising and education campaigns in increasing customer awareness toward green products and the significance of comprehending the cultural context when developing marketing strategies, especially in emerging markets such as Vietnam, where environmental concerns are skeptical and AW issues are relatively new. The study delved into the Vietnam market and specifically examined beauty care products labeled as “not tested on animals.” Additionally, we addressed a gap in the existing research by investigating the combined influence of AW concerns and GAS on the formation of green behavioral intentions (GBI).

The growth of the real estate corporate bond market in Vietnam: the role of investor sentiment

PurposeThis paper aims to examine the effects of investor sentiment on the development of the real estate corporate bond market in Vietnam.Design/methodology/approachThe research uses an autoregressive distributed lag (ARDL) model with quarterly data. Additionally, the study employs Google Trends search data (GVSI) related to topics such as “Real Estate” and “Corporate Bond” to construct a sentiment index.FindingsThe empirical outcomes reveal that real estate market sentiment improves the growth of the real estate corporate bond market, while stock market sentiment reduces it. Also, there is evidence of a long-run negative effect of corporate bond market sentiment on the total value of real estate bond issuance. Further empirical research evidences the short-term effect of sentiment and economic factors on corporate bond development in the real estate industry.Research limitations/implicationsDue to difficulties in collecting data, this paper has the limited sample of 54 valid quarterly observations. Moreover, the sentiment index based on Google search volume data only reflects the interest level of investors, not their attitudes.Practical implicationsThese results yield important implications for policymakers in respect of strengthening the corporate bond market platform and maintaining stability in macroeconomic and monetary policies in order to promote efficient and sustainable market development.Social implicationsThe study offers some suggestions for regulators and governments to improve the real estate corporate bond market.Originality/valueThis is the first quantitative study to examine the effect of sentiment factors on real estate corporate bond development in Vietnam.

HPTLC monitoring of illegal antihypertensive and antihistamine compounds in herbal products from the Vietnam market

Given the growing craze for dietary supplements, it is essential to critically examine the safety concerns surrounding their usage. There have been several cases of contaminated food-related mishaps in spite of numerous rules and laws in existence. We thus made an effort to find the existence of five antihistamines and four hypertensive in herbal items from the Vietnamese market, given the rising severity of this issue. High-performance thin-layer chromatography (HPTLC) was used to screen 32 samples, which were typical of the many kinds of herbal products. The investigation included both intra- and inter-day precision as well as repeatability. For all analytes, the devised technique was proven to be exact, with %RSD lower than 6%. The LOD and LOQ of nine compounds were determined to be in the range of 0.15–0.30 mg/g and 0.50–1.00 mg/g, respectively (solid matrix sample); 0.075–0.150 mg/g; and 0.25–0.50 mg/g (liquid matrix sample). The intra-day variation's percentage RSD varies from 1.40 to 5.10. Nonetheless, the inter-day variation's percentage RSD fell between 3.10 and 6.60. As a result, the procedure may be used to analyze herbal dietary supplement samples that are in circulation in order to quality control the herbal products on the Vietnamese market.

Regulations on Conditions for Foreigners’ Housing Ownership in Vietnam: Inadequacies and Possible Solutions

In Vietnam, the concept of “settling down, having a good career” becomes an important goal of each individual. It means having a stable place to live can be guaranteed when you get a job. Therefore, home ownership becomes a basic human right. In the current integration trend, when the opening to trade between countries around the world is deepening, the demand for house ownership is not only limited to Vietnamese citizens, but also to foreigners. Vietnam has also recognized the problem of foreigners owning houses in Vietnam, but there are still restrictions on the number of houses, the area of houses owned and other issues. Currently, the Government is implementing a policy to attract investment in housing in order to exploit the development potential of this field in Vietnam as well as to solve the outstanding housing problem and expand the housing market. Therefore, the issue of foreigners’ home ownership becomes an important concern and is one of the research subjects to implement this policy.The article presents the provisions of Vietnamese law, international law on home ownership rights of foreign individuals and organizations in Vietnam, as well as conditions for foreign individuals and organizations to own housing in Vietnam, a guarantee of human rights. In addition, the article also points out to the shortcomings of the national legal regulation, thus making some recommendations to overcome the difficulties of the real estate market and housing development in Vietnam.

The relationship between Foreign Direct Investment, trade openness, exchange rate, and Gross Domestic Product per capita in Vietnam

Aim/purpose – This study explores the nexus between Foreign Direct Investment (FDI), trade openness, exchange rate, and Gross Domestic Product (GDP) per capita in Vietnam between 1986 and 2020. Design/methodology/approach – The Vector Error Correction Model (VECM) was used to evaluate the nexus between FDI, trade openness, exchange rate, and GDP per capita in Vietnam between 1986 and 2020. Moreover, the Johansen co-integration test examined the long-run relationship among these variables. Findings – Results address that GDP per capita, FDI, and trade openness may generate an appreciation of the Vietnamese currency in the short run. In the long run, we found that FDI inflows and trade openness support GDP per capita, but the depreciation of Vietnam Dong harms the economic growth of this country in the long run. The Johan- sen co-integration test confirmed a long-run association among GDP per capita, FDI inflows, trade openness, and exchange rate. Results also indicated a unidirectional cau- sality running from GDP per capita and trade openness to FDI and exchange rate. In addition, a bidirectional causality ran from FDI to the exchange rate. Research implications/limitations – Policies were recommended to facilitate macroe- conomic stability for Vietnam. First, fiscal and monetary policies should be carried out to achieve targets in macroeconomic stability, economic development, employment creation, and inflation control. Second, FDI inflows should continue to be encouraged since they accelerate economic growth. Still, FDI projects should concentrate on improving labor skills and technological progress and promoting sustainable development in crucial sectors such as agriculture, energy, and the environment. Third, fostering innovation in exports by shifting focus from raw materials and inputs exports towards processed and high-value-added commodities while also promoting exports from domestic enterprises to reduce reliance on exports from FDI enterprises. Lastly, improving flexible and active exchange rate regimes consistent with real conditions in both domestic and international markets is necessary to stabilize the exchange rate and foreign currency market in Vietnam. Originality/value/contribution – This paper contributes to the field by providing spe- cific policy recommendations for Vietnam. These recommendations aim to stabilize the economy, attract FDI, renovate exports, and implement flexible and active exchange rate regimes. Keywords: Foreign Direct Investment (FDI), trade openness, exchange rate, Gross Domestic Product (GDP) per capita. JEL Classification: E60, O11, O24.

Factors Influencing the Supply Chain in the Export-Import Food Market in Vietnam

This study examines the key factors affecting supply chains in Vietnam's food export-import market. Using a mixed-methods approach, including expert interviews, focus groups, and a survey of 400 managers from food export-import companies, the research identifies seven critical factors: food quality and safety, traceability, logistics and transportation management, relationships between supply chain members, enterprise factors, ability to meet market demands, and government policies. Quantitative analysis reveals that food quality and safety has the strongest impact, with a standardized regression coefficient of 0.327. The proposed model explains 56.6% of the variance in supply chain performance. Based on these findings, the study recommends strategies for businesses to enhance their supply chain efficiency, including investing in quality control, implementing traceability technologies, optimizing logistics, building sustainable partnerships, strengthening management capabilities, improving market responsiveness, and leveraging government support. The research contributes to both theoretical understanding and practical management of food export-import supply chains in Vietnam.

The Gold Market in Vietnam: Current Situation and Solutions

The article analyzes the gold market, including supply and demand, price fluctuations, and current gold market management policies in Vietnam. The Vietnamese gold market is dominated by strict state regulations, especially the allowance for only physical gold trading and restrictions on gold imports; the monopoly of Saigon Jewelry Company (SJC) in producing gold bars further complicates the situation, creating unfair competition and limiting market development. This leads to domestic gold price fluctuations and a significant disparity between domestic and international gold prices, causing negative economic and social impacts. Based on the analysis of the current situation, the article proposes two groups of solutions for sustainable and effective market development in the future: (i) Policy and legal improvements, and (ii) Strengthening market management and supervision.

Factors influencing the supply chain in the export-import food market in Vietnam

This study explores the factors affecting the supply chain in the Vietnamese food import-export market using qualitative research methods. Through in-depth interviews and group discussions with key stakeholders, the study identifies seven critical factors: regulatory environment and policy challenges, quality control and food safety standards, logistics and infrastructure, market dynamics and consumer preferences, technology adoption and innovation, collaboration and integration across the supply chain, and environmental and sustainability concerns. The results show that a comprehensive approach is needed to improve the industry's competitiveness, including policy reform, infrastructure investment, application of advanced technology and increased cooperation between stakeholders observe and adapt to new market trends and environments. The study proposes specific recommendations to improve supply chain efficiency and proposes future research directions to gain a deeper understanding of the dynamics of Vietnam's food import and export market.

Enhancing ¬nancial well-being by -ntech: Assessing mediator - moderator impacts

Purpose - This study explores the factors shaping the relationship between the intention to use and the actual using behavior of Fintech services in the context of economic fluctuation. The main aim is to shed light on the intricacies of this relationship and contribute valuable insights to the field. Design/Methodology/Approach - We selected SmartPLS 4.0 software to process the collected data and applied the Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess hypotheses and relationships between potential variables. Findings - We found that the intention to use Fintech positively affects Using Fintech Behavior, which subsequently influences Financial Well-Being (FWB). Additionally, we also found the moderation effect of Financial Literacy (FL) and Resistance to Change (RC) on these relationships through Using Fintech Behavior (UFB), Financial Socialization (FS), and Intention to use Fintech (IT) impact FWB. Surprisingly, UFB does not function as a mediator in relationships involving FL, Financial Stress (FSt), and FWB. Practical implications - The findings’ results indicate that the Fintech service market in Vietnam is not yet diverse, not completely separated from communication services, and the habit of using cash still exists. In addition, despite having financial socialization, financial literacy, and intention to use Fintech, users are still not ready for innovation and the adoption of financial technology. This study suggests that Fintech service developers need to strengthen incentive policies and develop services towards geographic segmentation. Originality - The study could be considered one of the first studies in Vietnam to discuss how to enhance financial well-being at the individual level, especially in evaluating how using Fintech could affect financial well-being. It concludes that Financial Literacy and Financial Socialization are two noticeable factors that might impact Financial Well-being, and Using Fintech is a key to thriving Financial Well-being. Keywords Financial literacy, financial socialization, financial stress, financial well-being.

Investor sentiments and Fama-French five-factor in Vietnam market

Investor sentiments and Fama-French five-factor in Vietnam market