Business environment and labor productivity: The case of the Vietnamese firms
Authors: Thi Thu Cuc Nguyen, Huu Trinh Nguyen, Thi Kim Oanh Thai, Thi Dieu Anh Ho, Nguyen Van Tuyen, Thi Minh Thy Le, Thanh Cuong Nguyen and Cong Binh Ngo
Accounting
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Publishing year: 4/2020
This paper examines the effects of the business environment on the labor productivity of Vietnamese
manufacturing firms in the period of 2010-2018 using enterprise-level panel data drawn from
Vietnamese Annual Enterprise Censuses and province-level surveys of the Provincial
Competitiveness Index. Results show that in addition to traditional determinants, variables related to
ease of business are found to contribute significantly to the labor productivity throughout the sample.
The results support the arguments that Vietnam’s government policy in building a good business
environment plays a crucial role in stimulating the economic growth, especially in terms of a broaden
base for the economic development. Empirical studies about the in-depth effects of institutional
changes on the labor productivity in the manufacturing industries will be fruitful research agenda.