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The Contribution of Total Factor Productivity in the Air Transport of Vietnam: The Case of Vietnam Airlines

Received: 28 December 2016     Accepted: 5 January 2017     Published: 20 January 2017
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Abstract

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.

Published in International Journal of Mechanical Engineering and Applications (Volume 5, Issue 4-1)

This article belongs to the Special Issue Transportation Engineering Technology - Part III

DOI 10.11648/j.ijmea.s.2017050401.14
Page(s) 20-25
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2017. Published by Science Publishing Group

Keywords

Total Factor Productivity, Air Transport, Vietnam Airlines

References
[1] 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.
[2] 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.
[3] J Felipe and MC Combie, “How sound are the Foundation of the aggregate Production Function?”, Economics discussion Paper, No. 0116, 2001, pp. 1-33.
[4] Jean-Claude Nachega and Thomson Fontaine, “Economic Growth and Total Factor Productivity in Niger”, IMF Working Paper, 2006, International Monetary Fund.
[5] Latvijas Banka, “Measuring total factor productivity and variable factor utilization: Sector approach, the case of Latvia”, Working Paper, 3/2009.
[6] 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.
[7] 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.
[8] Rigas Doganis, “The airport business”, First published, 1992, London and New York.
[9] Robert A. Powell II, “Productivity Performance of US Passenger Airlines since Deregulation”, Master of Science in Transportation, 2012, Massachusetts Institute of Technology.
[10] Tang Van Khien, “The growth rate of total factor productivity - The method of calculation and application”, Publisher of Statistics, 2005.
[11] 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.
[12] 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.
[13] Vietnam Airlines, “The annual report and financial report”, Accessed from: http://finance.vietstock.vn/HVN/tai-tai-lieu.htm, in November 2016.
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  • APA Style

    Nguyen Hai Quang. (2017). The Contribution of Total Factor Productivity in the Air Transport of Vietnam: The Case of Vietnam Airlines. International Journal of Mechanical Engineering and Applications, 5(4-1), 20-25. https://doi.org/10.11648/j.ijmea.s.2017050401.14

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    ACS Style

    Nguyen Hai Quang. The Contribution of Total Factor Productivity in the Air Transport of Vietnam: The Case of Vietnam Airlines. Int. J. Mech. Eng. Appl. 2017, 5(4-1), 20-25. doi: 10.11648/j.ijmea.s.2017050401.14

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    AMA Style

    Nguyen Hai Quang. The Contribution of Total Factor Productivity in the Air Transport of Vietnam: The Case of Vietnam Airlines. Int J Mech Eng Appl. 2017;5(4-1):20-25. doi: 10.11648/j.ijmea.s.2017050401.14

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  • @article{10.11648/j.ijmea.s.2017050401.14,
      author = {Nguyen Hai Quang},
      title = {The Contribution of Total Factor Productivity in the Air Transport of Vietnam: The Case of Vietnam Airlines},
      journal = {International Journal of Mechanical Engineering and Applications},
      volume = {5},
      number = {4-1},
      pages = {20-25},
      doi = {10.11648/j.ijmea.s.2017050401.14},
      url = {https://doi.org/10.11648/j.ijmea.s.2017050401.14},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijmea.s.2017050401.14},
      abstract = {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.},
     year = {2017}
    }
    

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    AB  - 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.
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Author Information
  • Training Department, Vietnam Aviation Academy, Ho Chi Minh City, Vietnam

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