What are Key Determinants of Productivities and Business Efficiency? The Case Study on Food Industry of Vietnam

This study employs the Quantile Regression model to examine the factors that contribute to Total Factor Productivity (TFP) in the food industry of Vietnam. The analysis is based on a survey conducted by the General Statistics Office of Vietnam (GSO) from 2011 to 2018, encompassing 14,515 observations from firms operating in the food industry. The empirical findings reveal the following: (i) Changes in scale efficiency and technological progress have a significant impact on the growth of TFP in the food industry; (ii) The business environment plays a favorable and influential role in TFP growth in this sector; (iii) Of the three types, the private sector has the greatest influence on all quartiles. Consequently, it is recommended that promoting international investment, adopting technology, and fostering a fair business environment are essential factors for strengthening competitiveness and improving productivity, as indicated by its decomposition. © 2023, Tamkang University. All rights reserved.