DOI:

Abstract

This research is to investigate impacts of privatization on the development of privatized state-owned enterprises (abbreviated as SOEs) as part of the private sector. Such development is measured by the pre- and post-privatization business performance of 63 HCMC-based SOEs, half of which were privatized in 2004. Results pointed out a substantial rise in profit, sale revenue, workforce, laborer's income, and performance of surveyed enterprises. The difference-in-differences (DID) estimator is employed to compare SOEs and privatized ones in terms of their performance in the same period; and findings illuminated that privatized SOEs perform more efficiently. Besides, regression analyses also show that factors affecting the performance include company size, state ownership, and type of business. The research also reaffirms that the governmental decision on privatization is rational, and simultaneously manifests the impact of ownership modes on the business performance. Eventually, the research results can be consulted by business administrators and policy-makers.

Keywords

Privatization; SOEs; Business Performance; Private Sector.