COMPLETION REPORTThe effect of technological equipment from Japan on the performance of Vietnamese manufacturing
enterprises
Ms. Nguyen Thi Hoang Oanh （+1）
Lecturer
School of Economics
University of Economics Ho Chi Minh City
This research focuses on examining the effect of technological equipment from Japan on theperformance of Vietnamese enterprises by using the yearly conducted data of the Vietnam Technologyand Competitiveness Survey from 2010 to 2013 in combination with the data of Vietnam Enterprises
Survey with Propensity Score Matching (PSM) method. Particularly, this method makes an appropriatecomparison in firm performance of two enterprises group. One group applied imported technology fromJapan (herein as treatment group). The other group only applied domestic technological equipment but
their properties including size, type and sector are relatively similar to those of treatment group (herein ascounterfactual group).
Table 1. Impact evaluation of Japanese technological equipment in comparison to Vietnamese
technological equipment on Vietnamese corporate performance by PSM method
Performance1
SATT

Performance2
SATT

In respect to time of using technology

Coefficient(Standard Error)

Coefficient(Standard Error)

From 1 to 5 years (from 2006 to 2009)

0.266*

0.355**(0.192)
0.217
(0.2)
0.433
(0.74)(0.162)
0.134
(0.2)
0.002
(0.7)

Coefficient(Standard Error)

Coefficient(Standard Error)

0.358**

0.414**(0.17)(0.183)0.198(0.183)
0.77
(0.5)

0.197
(0.186)0.69(0.46)

From 5 to 10 years (from 2000 to 2006)
More than 10 years ( before 2000)
In respect to age of technology
From 1 to 5 years (from 2006 to 2009)
From 5 to 10 years (from 2000 to 2006)
More than 10 years ( before 2000)

Note: Calculated from Vietnamese enterprises data in the year of 2010

Performance 1: Logarithm of total profit from product and service supply
Performance 2: Logarithm of net sales of product and service supply
Time of using technology: the time length from the year of starting to utilize the technology to the surveyedyear (2010)
Age of technology: the time length from the production year of the technology to the surveyed year (2010)
Coefficient: expresses the percentage difference in performance between treatment group and counterfactual group*: significant level at 10%, **: significant level at 5%, ***: significant level at 1%
The Table 1 presents the difference in performance between enterprises which utilize technologicalequipment of Japan and similar enterprises which only utilize Vietnamese technological equipment. The
herein technological equipment is the most important and most frequently-used equipment that mainly
determines the corporate performance. The origin of technology is determined by the main producer of
the technological equipment. The industry of selected enterprises herein is manufacturing sector and thenumber of these enterprises is 4,382 enterprises. In regarding to total profit from product and service
supply, it seems that the result has only statistical significance when the time of using technology or theage of technology is from 1 to 5 years. In this case, in comparison to the enterprises which only utilize
Vietnamese technological equipment, the similar enterprises which utilize Japanese technologicalequipment shall have higher total profit from product and service supply by 26.6 percentages at 10%
significant level when the time of using technology is from 1 to 5 years and by 35.8 percentages at 5%
significant level when the age of technology is from 1 to 5 years. In regarding to net sales of product andservice supply, it also appears that the result has only statistical significance when the time of using
technology or the age of technology is from 1 to 5 years. In this case, in comparison to the enterprises
which only utilize Vietnamese technological equipment, at 5 % significant level, the similar enterprises
which utilize Japanese technological equipment shall have higher net sales of product and service supply
by 35.5 percentages when the time using of technology is from 1 to 5 years and by 41.4 percentages when
the age of technology is from 1 to 5 years.
In sum, the Japanese technological equipment seems to have better impact on corporate performancein comparison to Vietnamese technological equipment in the case that the time of using technology or theage of technology is from 1 to 5 years. The impact on sales appears to be higher than on total profit ofproduct and services supply.
Publication of the Results of Research Project:Verbal Presentation (Date, Venue, Name of Conference, Title of Presentation, Presenter, etc.)
Planning: September 2015, Small talk big ideals_ Conference in School of Economics, University ofEconomics Ho Chi Minh City. Impact evaluation of Japanese technological equipment on theperformance of Vietnamese enterprises.
Thesis (Name of Journal and its Date, Title and Author of Thesis, etc.)
Book (Publisher and Date of the Book, Title and Author of the Book, etc.)