The Contribution of Total Factor Productivity in the Air Transport of Vietnam: The Case of Vietnam Airlines
International Journal of Mechanical Engineering and Applications
Volume 5, Issue 4-1, July 2017, Pages: 20-25
Received: Dec. 28, 2016;
Accepted: Jan. 5, 2017;
Published: Jan. 20, 2017
Views 3202 Downloads 104
Nguyen Hai Quang, Training Department, Vietnam Aviation Academy, Ho Chi Minh City, Vietnam
The aim of this study is to determine the contribution of Total Factor Productivity (TFP) in the air transport of Vietnam over the case of Vietnam Airlines. Based on analyzing data of Vietnam Airlines from 2005 to 2015, this study showed that fixed assets, labor and TFP are factors that affecting the output elements of Vietnam Airlines as Available of Ton- Kilometers Conversion (ATKC), Performance of Ton-Kilometers Conversion (PTKC), revenue and value added. Among these factors, the contribution of fixed assets is higher than labor, especially in generating revenue and value added. In the period from 2006 to 2010, the growth of Vietnam Airlines was due to the increase in fixed assets, labor and TFP, but in the period from 2011 to 2015, this growth was mainly due to the increase of fixed assets. The results of this study suggest Vietnam Airlines and others airline in Vietnam can increase efficiency growth by investing capital in order to increase fixed assets, increase labor, innovate technology, improve management and improve labor skills.
Nguyen Hai Quang,
The Contribution of Total Factor Productivity in the Air Transport of Vietnam: The Case of Vietnam Airlines, International Journal of Mechanical Engineering and Applications. Special Issue: Transportation Engineering Technology - Part III.
Vol. 5, No. 4-1,
2017, pp. 20-25.
Copyright © 2017 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/
) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Anton Brits, “A liberalised South African airline industry: Measuring airline total-factor productivity”, Journal of Transport and Supply Chain Management, November 2010, 2010, pp. 22-38.
Dang Hoang Thong and Vo Thanh Danh, "Analysis of factors affecting growth of Can Tho City: Approach total factor productivity", Journal of Science, No. 17b, 2011, pp. 120-129.
J Felipe and MC Combie, “How sound are the Foundation of the aggregate Production Function?”, Economics discussion Paper, No. 0116, 2001, pp. 1-33.
Jean-Claude Nachega and Thomson Fontaine, “Economic Growth and Total Factor Productivity in Niger”, IMF Working Paper, 2006, International Monetary Fund.
Latvijas Banka, “Measuring total factor productivity and variable factor utilization: Sector approach, the case of Latvia”, Working Paper, 3/2009.
Nguyen Hai Quang, “The impact of capital and labor on output value of waterway transport enterprises in Vietnam”, Journal of Science, Vol 6 (45), 2015, pp. 67-75.
Phan Nguyen Khanh Long, “Assessing the quality growth of Thua Thien Hue province in view of productivity of factors of production”, Journal of Science, Vol 72b, No. 3, pp. 173-180.
Rigas Doganis, “The airport business”, First published, 1992, London and New York.
Robert A. Powell II, “Productivity Performance of US Passenger Airlines since Deregulation”, Master of Science in Transportation, 2012, Massachusetts Institute of Technology.
Tang Van Khien, “The growth rate of total factor productivity - The method of calculation and application”, Publisher of Statistics, 2005.
Trinh Minh Tam and the author, "Developing and applying methods to measure productivity in medium and small enterprise in area of Ho Chi Minh City", Scientific research topic, 2007, Ho Chi minh city.
Yagmur OZ., Can Deniz KO, “Analyzing efficiencies and total factor productivities of Star Alliance member airlines”, The Online Journal of Science and Technology - January 2016 Volume 6, Issue 1, pp.
Vietnam Airlines, “The annual report and financial report”, Accessed from: http://finance.vietstock.vn/HVN/tai-tai-lieu.htm, in November 2016.