Vietnam's state‐owned enterprise reform

Purpose – Under the pressure of competition from non‐state‐owned enterprises (non‐SOEs) since the Renovation in 1986, the Government of Vietnam has sought to reform state‐owned enterprises (SOEs) in order to improve their productivity and efficiency. Whilst the theoretical efficiency benefits from the SOE reform have interested many, this study seeks to add empirical insights to this debate using Williamson's transaction cost economics (TCE). Design/methodology/approach – Organizational integration and transaction costs – two dimensions of firm efficiency – were compared between SOEs and non‐SOEs using multivariate analyses of variance (MANOVA). The analysis was conducted in the context of the within‐firm logistics processes of international multimodal transport (IMT) in Vietnam. Findings – SOEs were as efficient as non‐SOEs along organizational integration and transaction costs dimensions. Research limitations/implications – Results of the study contribute to the ongoing research on SOEs reform in Vietnam. They add tentative support to the reform process, although the study also highlights the need for further research incorporating the wider motivation for the SOE reform and/or the broader influence of competition and private ownership. Originality/value – This study assesses the efficiency of the SOE reform in Vietnam from a perspective that has never been done before, Williamson's TCE.