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Abstract:
In the process of globalization and international integration, foreign direct investment (FDI) is becoming a crucial part of the social-economic development of Vietnam. This study applied constant returns to scale data envelopment analysis (DEA) and Malmquist Productivity Index (MPI) model to investigate the change in the efficiency of FDI enterprises in Vietnam. The panel data to analysis were collected in the period 2011-2016. The findings showed that there was an increasing trend in total factor productivity (TFP) of FDI firms in 5 studied regions in Vietnam. The Malmquist TFP index of FDI enterprises in industry sector found to be higher than that of agricultural and service firms. This study provides useful evidence for policy designers to create a mechanism to attract FDI flows in Vietnam, especially in the agricultural sector and essential regions.
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