Vietnam's state‐owned enterprise reform: An empirical assessment in the international multimodal transport sector from the Williamson's TCE perspective

Abstract

Purpose

Under the pressure of competition from non‐state‐owned enterprises (non‐SOEs) since the Renovation in 1986, the Government of Vietnam has sought to reform state‐owned enterprises (SOEs) in order to improve their productivity and efficiency. Whilst the theoretical efficiency benefits from the SOE reform have interested many, this study seeks to add empirical insights to this debate using Williamson's transaction cost economics (TCE).

Design/methodology/approach

Organizational integration and transaction costs – two dimensions of firm efficiency – were compared between SOEs and non‐SOEs using multivariate analyses of variance (MANOVA). The analysis was conducted in the context of the within‐firm logistics processes of international multimodal transport (IMT) in Vietnam.

Findings

SOEs were as efficient as non‐SOEs along organizational integration and transaction costs dimensions.

Research limitations/implications

Results of the study contribute to the ongoing research on SOEs reform in Vietnam. They add tentative support to the reform process, although the study also highlights the need for further research incorporating the wider motivation for the SOE reform and/or the broader influence of competition and private ownership.

Originality/value

This study assesses the efficiency of the SOE reform in Vietnam from a perspective that has never been done before, Williamson's TCE.

Citation

Nguyen, P. and Crase, L. (2011), "Vietnam's state‐owned enterprise reform: An empirical assessment in the international multimodal transport sector from the Williamson's TCE perspective", Asia Pacific Journal of Marketing and Logistics, Vol. 23 No. 3, pp. 411-422. https://doi.org/10.1108/13555851111143286