Determinants of Firm Survival: The Case of the Manufacturing Industry in Vietnam

This research aims at investigating determinants of manufacturing firms' survival in a developing economy, the case of Vietnam, for the period 2000-2007 - the strongest globalization period. The research employs the semi-parametric Cox proportional hazard model for a comprehensive specification of firm attributes, industrial and macroeconomic factors. Findings imply that the firms' hazard rate depends on ownership, but the effect level depends on economic contexts. Labour productivity is the most important determinant of the manufacturing firms' survival. The higher profit per employee will support firms to have higher survival likelihood. High market share and small size are considered obstacles only for survival of state-owned enterprises. The firm survival is affected by macroeconomic and geographical factors.