The impact of public governance on firm performance in Vietnam

Abstract

This paper examines the impact of public governance on enterprise performance in Vietnam. Using data from the Vietnamese enterprises white book and Provincial Competitiveness Index (PCI) in the period 2016 - 2019, applied Feasible Generalized Least Squares (FGLS) estimators, the study finds out that the public governance affects positively the enterprise’s performance. Specifically, the study shows that easy access to land and stable land using rights; time for inspections and quickly bureaucratic procedures, as well as equally competitive environment among ownerships; good labor training policies are factors to make increase the enterprise’s performance. These findings are empirical evidence to suggest policy implications of improving the quality of public governance to create favorable conditions for enterprises to operate and develop.