Munich Personal RePEc Archive

Government Support and Firm Performance in Vietnam

Nguyen, Hoai Thu Thi and Vu, Huong Van and Bartolacci, Francesca and Quang Tran, Tuyen (2018): Government Support and Firm Performance in Vietnam. Published in: Asian Academy of Management Jourrnal , Vol. 2, No. 23 (15 December 2018): pp. 101-123.

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Abstract

Using a sample of private manufacturing SMEs (small and medium-sized enterprises) in the period 2007-15, we analyze the effect of government support on firms’ financial performance in Vietnam. Contrary to many previous studies, we find that government support affects firms’ financial performance after controlling for heterogeneity, unobservable factors and dynamic endogeneity. The finding supports the viewpoint of institutional theory. Also, the study reveals that assistance measures, such as tax exemptions, soft loans and investment incentives to promote financial performance, are vital for the development of Vietnamese private SMEs.

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