THE EFFECT OF GROWTH ON FIRM SURVIVAL IN VIETNAM

With the dataset of 7,962 firms in Vietnam and using the Cox proportional hazard model, the main findings are drawn that the relationship between the growth (both in employment and in assets) and the survival is positive and non-linearity, and as increasing the growth, the effect of growth on the firm survival is diminishing. In addition, we also find that the presence of the domestic private and the foreign firms can improve the survival chances, compared to the state firms; The firm size in assets and initial debt have positive relationships with firm survival; Earning before taxes over labour in year t-1 and the return on assets in year t-1 are important and have positive impacts on firm survival in year t, whereas the leverage in year t-1 has a negative impact on the probability of survival in year t for firms in Vietnam.