Impact of transport infrastructure on firm performance: case study of Cuu long delta area, Vietnam

Abstract

Transport infrastructure plays an important role in promoting the socio-economic development in most countries. In particular, the development of road infrastructure is the basis for promoting enterprises development through expanding market access, lowering logistics cost and inputs cost, etc. The focal point of this paper is to estimate the impact of road infrastructure on firm performance through an empirical research in Cuu Long delta area, Vietnam. By applying the econometric models, the results from this study show that the positive relationship between road infrastructure and firm performance in Cuu Long delta area, and that the level of impact is different across business sectors.

On the interplay between the entrepreneurs' challenges and the business performance: empirical study and evidence from emerging economies

“…In this regard, Wagdi and Hasaneen (2019) showed that a lack of accounting and management can impede entrepreneurs to achieve their goals. Tuong et al (2019) studied the impact of infrastructure on firm performance. They displayed that improving the quality of road infrastructure leads to high firm performance.…”

“…Iimi (2008) found that the elimination of water supply suspensions for one hour will save 4.4% of business operating costs, while the elimination of electricity irregular supply for one hour will save 1.5% of the operating costs, which will improve business performance and lead to total reduction from 4 to 7% in its operating costs. Tuong et al (2019) discussed the effect of infrastructure on firm performance. It indicates that improved road infrastructure positively affects a firm performance by increasing its efficiency and decreasing its cost (fuel cost, vehicle depreciation, etc.).…”