Capital diversion in Vietnamese state-owned enterprises

Phu Nguyen-Van, Ngoc Minh Nguyen and Ngoc Anh Nguyen

No 2023-29, EconomiX Working Papers from University of Paris Nanterre, EconomiX

Abstract: We consider the capital productivity of a panel data set of 10,200 Vietnam state-owned enterprises over the period 2010-2018, using a stochastic frontier production modelling. We discover there exists an overutilization of the physical capital and more importantly, diversion of the capital stock. This diversion may be due to a waste of capital stocks or to a special form of bribery we call "hidden overhead". The very high diversion rate, 69% on average, calls for a profound reform of the sector.

Keywords: Productivity; stochastic production frontier; hidden overhead (search for similar items in EconPapers)
JEL-codes: E20 O53 P20 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2023
New Economics Papers: this item is included in nep-eff, nep-sea and nep-tra
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Related works:
Working Paper: Capital diversion in Vietnamese state-owned enterprises (2023)
Working Paper: Capital diversion in Vietnamese state-owned enterprises (2023)
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