The Stochastic Frontier Production Function (SFPF) Approach for the Analysis of Ownership Structure and Technical Efficiency of Construction Enterprises

This paper analyzes the impact of ownership structure on the technical efficiency of construction enterprises in Vietnam with enterprises survey data in Vietnam for 2012-2017 by the method of Stochastic Frontier Production Function (SFPF). The results show that private construction enterprises are more efficient than state-owned construction enterprises (SOEs), while FDI enterprises are less efficient than state-owned construction enterprises. In addition, the research also indicates that the use of financial leverage helps enterprises operate more effectively. Especially, in this stage, small and micro enterprises are more efficient than medium and large enterprises. In addition, the research also find that compared to construction enterprises in other regions of the country, enterprises in the Red River Delta are less efficient. The state needs to be equal in policy mechanism between private enterprises and SOEs and FDI enterprises. Besides, construction enterprises need to pay attention to the management and the effective use of machinery and equipment, which contributes to improve the technical efficiency.