Academic journal article Academy of Accounting and Financial Studies Journal

Main Policies Affecting Corporate Performance of Agri-Food Companies in Vietnam

Academic journal article Academy of Accounting and Financial Studies Journal

Main Policies Affecting Corporate Performance of Agri-Food Companies in Vietnam

Article excerpt

INTRODUCTION

Topic statement

Vietnam is now one of the leading producers and exporters of many agricultural commodities such as rice, coffee, natural rubber, cashews, cassava, and black pepper and some aquaculture products like catfish and shrimps. Efforts of producers and business in the sector combined with opportunities from economic integration have helped the country to have more influence in the regional food security and trade.

Vietnam is attracting more and more investors and business around the world by its legal framework reform (World Bank, 2008). Since the Renovation in 1986, a long series of policy changes have moved the agricultural sector, in the direction of open markets, private ownership of land use rights, the acceptance of private firms, and measures to attract foreign trade and investment. But in parallel with positive effects, the implementation of commitments to open the domestic market has led to greater competitive pressure on agriculture, requiring a system of trade liberalization countermeasures, which must be consistent with international rules but helps Vietnam to really benefit from free trade agreements (FTAs). A various factors affecting corporate performance are discussed in several studies. The performance of firms should be compared over a period of time and be sensitive to contextual factors, such as sectoral and operational differences. Known factors stated in many research include ownership structure, firm size, firm age, and tangible assets (Alfredo Koltar, Campopiano and Cassia, 2013) or emerging determinants including leader and top management team; strategic focus; trust in the future; and resources support (Fernando Ribeiro Serra, Manuel Portugal Ferreira, 2010). These findings motivated us to study the characteristics and Vietnam's legal framework and policies affecting determinants of agri-food corporate performance such as the ownership structure, firm size, sectoral and operational differences, rust in the future, resources support.

Purpose of the study

The study aims to examine the current situation of agri-food companies' performance in Vietnam, their main difficulties and problems. It reviews and examines also main policies affecting corporate performance of agri-food companies in Vietnam and gives the legal reform in order to support agri-food companies to improve their corporate performance.

METHODOLOGIES

In addition to a review on corporate performance of agri-food companies in Vietnam, an analysis of legal framework and policies affecting corporate performance of agri-food companies in Vietnam will provide a panorama on the business environment of agri-food companies in the process of economic integration and trade liberalization. The policy matrix is built to assess the policy main content, objectives, measures and the implementation process. It identifies also the pros and cons of these policies in term of support agri-food companies, which is necessary to the legal reform in order to support agri-food companies to improve their corporate performance.

Main policies affecting corporate performance of agri-food companies in Vietnam data has been studied observing primary and secondary data as available from record of annual report.

Corporate Performance and Main Problems of Agri-Food Companies in Vietnam

Corporate performance: A brief literature review

There has been a long debate on corporate performance, its measurements and how these measurements should be combined to reflect performance of different firms' operation in different sectors. In 1980s, traditional performance measurements are based mainly on tangible financial indicators. Then, from the year of 1990, people recognized limitations of traditional measurements and added intangible measures including public image, reputation, customer satisfaction, employee satisfaction and attrition, skills levels, innovations in products, etc. (Maskell, 1991, Ahire et al. …

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