The Impact of Macroeconomic Instability on Businesses Performance of Furniture Industry Enterprises in Vietnam

Abstract

Vietnam has made remarkable development progress in the furniture industry. However, the macroeconomic instability, such as the US-China trade war and the outbreak of the Covid-19 pandemic, have had a significant impact on Vietnam's furniture enterprises. Using a system generalized method of moments (SGMM) and data from 13 furniture enterprises listed on the Vietnamese stock market between 2011 and 2021, the model estimation results revealed that Vietnamese furniture enterprises had benefited significantly from the US-China trade war in recent years. However, the findings indicate that the Covid-19 pandemic has harmed the return on equity (ROE) of Vietnamese furniture enterprises. We propose some policy implications based on the research findings to improve the future business performance of Vietnamese furniture enterprises.