Impact of economic growth, public investment, and private investment on firm performance in some economic sectors in Vietnam: An SGMM approach

Abstract

This paper aims to propose policy implications to improve firm performance across various economic sectors in Vietnam by assessing the impact of economic growth, public investment, and private investment on firm performance in several sectors. To achieve this, the study employs the System Generalized Method of Moments (SGMM) with panel data from the General Statistics Office of Vietnam, covering 14 sectors from 2011 to 2022. Data analysis was conducted using Stata software, version 17. Empirical findings indicate that economic growth and public investment negatively affect firm performance in some sectors, whereas private investment has a positive impact in certain sectors. These findings have practical significance for Vietnamese state management agencies aiming to enhance firm performance. Specifically, Vietnam should focus on maintaining stable and sustainable economic growth across sectors. Additionally, improving the efficiency of public investment by addressing delays in project progress and capital pooling, as well as tackling inefficiencies in state-owned enterprises, is essential. Furthermore, the government should promote and facilitate private investment to support sector development.