TECHNICAL EFFICIENCY IN VIETNAMESE BEVERAGE INDUSTRY: A STOCHASTIC META FRONTIER PRODUCTION FUNTION APPROACH

Abstract

This study aims to analyze technical efficiency and technology gap ratio of Vietnamese beverage firms. The research uses the stochasticmeta-frontier production function model and the enterprise census data of the beverage industry collected by the Vietnam General Statistics Office. The estimated results show that beverage firms have modern production technology, in which domestic firms have approached and applied technology better than FDI firms. However, FDI firms have maximized the available production resources, so the meta technical efficiency of these firmsis better than that of domestic firms.