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Technical progress, technical efficiency, and environmental change: New insights into Vietnam’s productivity growth

Author

Listed:
  • Thanh Viet Nguyen

    (University of Akureyri)

  • Michel Simioni

    (UMR MoISA - Montpellier Interdisciplinary center on Sustainable Agri-food systems (Social and nutritional sciences) - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement, TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - Comue de Toulouse - Communauté d'universités et établissements de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

Vietnam has experienced remarkable economic growth over last three decades, but the country's development fundamentals remain fragile. This growth has been primarily driven by an expanding labor force and capital deepening, with less emphasis on productivity growth. In this article, we aim to provide insights into technical progress, environmental change, and technical efficiency at the provincial level in Vietnam from 2010 to 2019 using stochastic production frontier analysis with endogenous inputs and external factors. We analyze differences in productivity and efficiency during the study period to determine the impact of the production environment, technology, and management at the provincial level in Vietnam. Our findings reveal a notable increase in productivity, averaging 3.6 percent per year across all provinces. Assessing technical efficiency, we identify a positive impact of the provincial competitiveness index and a negative influence of foreign direct investment. The implications underscore the need for Vietnam to strengthen provincial institutions and enhance financial, educational, and technological policies to improve productivity. This article offers valuable insights for policymakers and stakeholders engaged in sustainable economic development in Vietnam and beyond.

Suggested Citation

  • Thanh Viet Nguyen & Michel Simioni, 2025. "Technical progress, technical efficiency, and environmental change: New insights into Vietnam’s productivity growth," Post-Print hal-05338206, HAL.
    • Handle: RePEc:hal:journl:hal-05338206
    DOI: 10.1016/j.eap.2025.10.016
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