Performance of the Vietnamese Automobile Industry: A Measurement using DEA
Keywords:automobile industry, Vietnam, data envelopment analysis, performance
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.
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