Factors affecting TFP productivity: a survey in six industries in Ho Chi Minh city

Abstract

A number of studies have shown that long-term economic growth and sustainable economic developments are mainly due to the productivity growth. This study employs data covering more than 15,000 manufacturing companies in Ho Chi Minh City during the period 2000-2009 to calculate the Total Factor Productivity of 48 3-digit VSIC industries belonging to the six major industries including Foods and Beverage, Garment, Chemical, Electronics and Communication, Building materials, and Mechanical industries. It is found that the concerns for environment protection and the industry size have positive impacts on the TFP growth while tax burden and capital intensity have negative impacts. The degree of foreign firms’ involvement and the industry concentration are found not to have any impacts on the TFP growth.