State-Owned Enterprises In Vietnam Research Articles

The relationship between enterprise characteristics and the board of directors of state-owned enterprises in Vietnam

The relationship between enterprise characteristics and the board of directors of state-owned enterprises in Vietnam

Corporate governance for sustainable development in Vietnam: Criteria for SOEs based on MCDM approach.

This research explores the nexus between corporate governance and sustainable development, focusing on State-Owned Enterprises (SOEs) in Vietnam. Recognizing the pivotal role of SOEs in the national economy, this study employs a Multi-Criteria Decision-Making approach (MCDM) to assess and enhance the corporate governance frameworks of these entities. First, the Data Envelopment Analysis (DEA) model is employed to identify the most qualified prospective SOEs firms based on several quantitative criteria. Then, the spherical fuzzy analytic hierarchy process (SF-AHP) model is used to identify priority weights for a given set of qualitative criteria, the Evaluation based on distance from average solution (EDAS) model is implemented to rank enterprises in the SOEs sector. To validate the proposed models, a case study conducted within the Vietnamese electric power industry is utilized. The MCDM methodology integrates diverse factors such as business management, corporate social responsibility, and corporate governance shareholder to construct a comprehensive evaluation framework. By applying this approach, the study aims to identify the key drivers and barriers influencing corporate governance practices within Vietnamese SOEs. The study's findings illustrate the efficacy of the suggested approach in evaluating corporate governance performance, providing valuable insights for policymakers, corporate leaders, and stakeholders involved in shaping the governance landscape of SOEs in Vietnam. By aligning corporate governance with sustainable development principles, the research aims to contribute to the ongoing discourse on responsible business practices, offering practical recommendations to enhance the performance and resilience of SOEs in the pursuit of long-term socio-economic and environmental sustainability.

Relationships between human resource management practices, employees’ job satisfaction, and business performance in state-owned enterprises: A case study of enterprises in Vietnam posts and telecommunications group

The study aims to explore and measure the relationships between human resource management practices, employees’ job satisfaction, and business performance in state-owned enterprises in Vietnam – A case study of enterprises in Vietnam Posts and Telecommunications Group (VNPT). The study adopts qualitative research, combined with quantitative research by CB-SEM The research data were collected from August 2021 to December 2021 by email and online survey with 621 staff currently working at VNPT in 18 provinces and cities representing 6 telecommunications service regions in nationwide Vietnam. The research results show that the human resource management practice at VNPT enterprises includes 7 components (job identification, recruitment, training and progression, performance appraisal, compensation, empowerment, and labor relations). They all have a strong influence on the employees’ job satisfaction and the business performance of VNPT enterprises. However, the influence of the employee’s job satisfaction on the business performance of these enterprises has not been found

Potential market-stealing effect of FDI on state-owned enterprises: an empirical examination of the case of Vietnam

Despite significant contributions of foreign direct investment to the economies of host countries, market-stealing effect on the domestic enterprises could appear as international capital flow rises. Market-stealing effect could be negative to the domestic firms, including the state-owned enterprises (SOEs). For Vietnam, both foreign invested firms and SOEs are of interest to the government. Hence, the question whether the market-stealing effect on SOEs appears as FDI increases needs to be answered. This study provides insights into the market-stealing effect from the market share and labor productivity perspectives with the application of the random effects methods utilizing panel data of more than 4,000 observations of SOEs in Vietnam. The market-stealing effect on SOEs in Vietnam in both perspectives of market share and labor productivity is not found as FDI increases. The market-stealing effect from the aspect of market share is revealed in two important industries, which are agriculture, forestry and fishing, and manufacturing. From the aspect of labor productivity, there is no evidence of this effect for all five industries. As the types of SOEs are taken into consideration, the market-stealing effect regarding market size is higher for the SOEs with 100% of state capital than those with less state capital. From the labor productivity perspective, that effect does not exist.

Transforming state-owned enterprises in Vietnam until 2030: orientations and solutions

In recent years of renovation, Vietnam has consistently implemented the policy of developing a multi-sector economy based on market mechanism and managed by the State. Vietnam has built a relatively complete system of policies and legislation on the transformation of state-owned enterprises (SOEs). With the equitization process, although the number of SOEs is gradually decreasing, accounting for a low proportion in terms of quantity in the entire enterprise sector, it still holds a large amount of resources in terms of capital and assets, generates revenue and has a significant contribution to the state budget. However, the results of the transformation of SOEs are still limited, including: The progress of equitization and divestment is still slow, development strategies of many SOEs are not clear, the choice of investment structure, resource mobilization is still confusing, financial capacity is limited, management efficiency, investment efficiency, production and business efficiency are still low... These inadequacies may originate from the content of the policy or in the organization of business activities of SOEs with low efficiency. The article focuses on assessing the overall process of SOEs transformation in the transition to a market economy, especially from 2011 to now. The article points out the successes and limitations, identifies the causes of the limitations in order to overcome and adjust the SOE transformation process in the coming period.

Using IPA model to evaluate management criteria for State-owned enterprises

In modern society, State management plays an important role. Therein, State-owned enterprises in Vietnam played a pivotal role in post-war economic development. Therefore, the main objective of the study is to analyze the evaluation criteria of State management for SOEs. The article identifies criteria and analyzes SOE management based on the Importance - Performance Analysis model to measure the gap between the level of importance and level of performance of the criteria. This research uses both qualitative and quantitative data obtained from interviewing experts and surveying 425 managers. The Cronbach’s Alpha test, Exploratory Factor Analysis, Paired Samples T-Test, and IPA model are employed to analyze the data collected. The research results pointed out that the indicators of the evaluation criteria are scattered in four quadrants of the IPA model. Especially, the first quadrant has up to ten indicators that are evaluated at a low level of performance, focusing on efficiency and effectiveness criteria. It means the efficiency and effectiveness of State management have not been appreciated. The second quadrant which keeps up the good work has six indicators. The third quadrant (lower priority) has six indicators. And the fourth quadrant (possible overkill) has eleven indicators. The results brought practical implications for the managers of the State management agencies to understand the actual situation of State management for SOEs in recent years. From the analysis of the Importance and Performance in the IPA model, two criteria that need to be focused on improving are efficiency and effectiveness. The article also presents discussions and recommends solutions to improve the management of the State. In addition, matrix IPA is also being analyzed to provide a basis for managerial implications to improve the State management for SOEs in the future.

Labor and Its Efficiency in Equitized State-owned Enterprises in Vietnam

This study is conducted for evaluating changes in labor efficiency of state-owned enterprises after equitization. Data were collected from audited financial statements and reports of labor and average income in 138 state owned enterprises after equitization. After calculating labor efficiency according to revenue and earnings of enterprises in the sample, we apply the comparative method for labor, average income and labor efficiency before and after equitization. Then, we use the Wilcoxon Signed-Rank Test to compare the fluctuation in the ratios between two years after equitization with one year prior to equitization. The results show that after equitization, enterprises achieve an increase in average number of labor, improved average labor income and enhanced labor efficiency. Keywords: Equitization, state-owned firm, labor efficiency, Vietnam. DOI : 10.7176/RJFA/10-5-10 Publication date :March 31 st 2019

The Determinants of Equitization Success of State-Owned Enterprises in Vietnam

This study aims to investigate the factors that affect the success of Vietnam’s State-owned enterprises’ (SOEs) equitization. Using a unique sample of equitization of unregulated SOEs in Vietnam from January 2010 to April 2016, we find that age, valuation, and gross margin of the SOEs are significant determinants of the success of the equitization. Specifically, in contrast with prior literature, age is found to have a negative impact on the success of the equitization. On the other hand, valuation and gross margin have a positive impact on the success of the equitization.

Reforming State-Owned Enterprises in Vietnam: The Contrasting Cases of Vinashin and Viettel

State-owned enterprise (SOE) reform was introduced into Vietnam as a component of the Doi Moi economic reforms that began in 1986 and aimed to replace central planning with a more market-oriented economy. SOEs had performed poorly and were a drain on government resources. In this article we use a political economy framework to trace SOE reform through the various stages of policymaking and implementation. While the number of SOEs has been reduced, privatization (“equitization” in Vietnam) of large enterprises has proved more difficult as it has threatened the interests of powerful stakeholders. We use two case studies of large Vietnamese SOEs to demonstrate and explain both success and failure in SOE reform.

Strategic Management in Vietnam State-Owned Enterprises (SOE)

This paper analyzes the strategic management in SOEs on the basis of a survey of 73 SOEs in Vietnam. The findings have shown that very few SOEs have a section in charge of strategic planning; they are more likely to make decisions based on the subjective experiences of leaders. Though numerous innovations have been recorded in activities of studying business philosophy, mission, objectives of Vietnam’s SOEs, these have still not totally escaped from a habit of falling into the old ways of thinking; there have still been many limitations in activities of forecasting external environment and external forecasting. The personnel system, despite the reforming, restructuring steps being under way, is still very completed at present. Activities of testing, assessing, correcting still largely for form’s sake, without clear objectives. From the research findings, the paper proposes several solutions in order to improve the performance of strategic management in Vietnam’s SOEs.

Problems and Issues in Corporate Restructuring in the State-Owned Construction Sector in Vietnam: The Case of VINACONEX

The study of corporate restructuring in state-owned enterprises has been a hot topic in the academic world. However, little study has been done in investigating the corporate restructuring in state-owned enterprises in Vietnam. This study is devoted to exploring the problems and issues of corporate restructuring in a specific construction company in Vietnam. This study aims to investigate what problems and issues arise in the corporate restructuring of a construction company. A typical five-level Likert item questionnaire was designed for the data collection. Data from 398 respondents show that the company’s restructuring decision was determined by the company’s internal and external factors. VINACONEX needs to pay more attention to management training for managers and to carrying out technological innovation. From the findings, we propose some solutions to deal with problems arising from the restructuring of VINACONEX. The results of the study provide more evidence for the theories about corporate restructuring and contribute to the growing knowledge in strategic management by using a specific Vietnamese case. In this study, we also draw some limitations and recommendations for future research.

State-owned enterprises in Vietnam: are they ‘crowding out’ the private sector?

This article assesses, on a province-by-province basis, whether state-owned enterprises (SOEs) are constraining the development of private firms in Vietnam. The analysis suggests the greater the density of SOEs present in a province, the more they enjoy favouritism, the lower is the proportion of bank loans that go to private companies, and the longer it takes for private firms to get access to land. There is also a negative correlation between SOE growth and private sector growth. But most importantly, the greater the density of SOEs in a particular province, the lower the GDP (and GDP per capita) growth recorded by that province. This evidence suggests that SOEs are indeed ‘crowding out’ private companies in Vietnam.

Profitability and Cost Management in Former State Owned Enterprises in Vietnam

By the mid 1980s, Vietnam's economic system had deteriorated to the point of crisis. Chronic shortages of key staples had fanned hyperinflation and localised outbreaks of commercial activities contrary to central regulations had become endemic. In the face of these forces, a vigorous reform program known as was embraced by the Communist Party of Vietnam, the holder of exclusive political power. Privatisation and the creation of capital markets in which equity interests in privately owned enterprises could be traded represented key planks of the Doi Moi reform platform. This paper provides evidence on the impact of privatisation and listing of former state owned enterprises (SOEs) in Vietnam, by examining changes in the profitability and cost management practices of a sample of listed former SOEs. This evidence contributes to the literature by examining profit makeup at a component level, rather than on the aggregate basis which has been adopted in prior studies. This allows the development of richer insights than have previously been possible into the factors contributing to observed changes in post privatisation profitability.

The traditional ideology of senior management: obstacles to entrepreneurship and innovation in the reform of state-owned enterprises in Vietnam

The radical economic reforms sweeping through former socialist countries over the 10–15 years have created the need to transform state-owned enterprises (SOEs) into market-oriented companies. In the specific case of Vietnam, this is a challenging process, as a number of managers and workers still unconsciously subscribe to a traditional management ideology. Based on interview data from seven SOEs' top managers, this paper argues that SOEs' traditional management ideology needs to be changed if economic reforms are to be effective. As the ideology tends to be unconsciously held, rational learning has little impact. Thus, company privatisation and management re-education – the most common approaches in SOE reform – cannot by themselves create entrepreneurial and innovative managers. Instead, there is a need to create opportunities for a new generation of managers to be in a position of corporate power and lead the change.

Diffusing the Marketing Concept in a Transforming Economy: Class Consultancies for State-Owned Enterprises in Vietnam

ABSTRACT Modern business education in transitional economies such as Vietnam must provide students with a strong conceptual base, but also give them practical experience in application of concepts. Local companies, used to central planning, likewise badly need marketing know-how to become more competitive. However, relying on new hires from among recent graduates is not going to help companies upgrade very quickly. Building marketing research (MR) courses around consulting projects for local companies helps bring real world marketing into the classroom, upgrading experience for both students and teachers.

Technical Efficiency of Industrial State‐Owned Enterprises in Vietnam

Measured among themselves, industrial state‐owned enterprises (SOE) in Vietnam have recorded a rather high level of technical efficiency, as well as a moderate improvement in technical efficiency between the 1997 and 1998. Of the possible factors, the share of skilled workers, location in Ho Chi Minh City (formerly Saigon) and engagement in export activities were considered the most important in determining the technical efficiency level. Between 1997 and 1998 there was no evidence of technological progress. For the ongoing SOE reform process in Vietnam, attention should be given to improving the skills of the work force and to encouraging the export‐led development strategy. Creating a competitive envir‐onment and a fully developed system of market‐supporting institutions is also highly needed. In addition, it is necessary to invest in new technology for industrial SOE in Vietnam.

Economic Reform and Behaviour of State-Owned Enterprises in Vietnam

Economic Reform and Behaviour of State-Owned Enterprises in Vietnam