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Performance Evaluation of Vietnamese Apparel Enterprises: An Application of DEA Approach
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NSTL
A continued robust growth of Vietnamese apparel enterprises has showed that they do not play the auxiliary but the main role in the national industry. However, in general, the apparel industry in Vietnam has not met the practical requirements. In order to provide overall performance evaluation and how to achieve efficiency systematically, this study utilizes DEA approach to determine the performance levels of 15 Vietnamese apparel industry enterprises and assess their efficiency. Specifically, we have applied output oriented model, which aims to maximize outputs while the inputs proportions remain unchanged to realize DEA efficiency analysis. CCR-based and BCC-based models are utilized to get overall technical and pure technical efficiencies. The findings show that having business transactions with foreign partners, good labor cost management and effective inventory management are the most prominent factors in distinguishing between efficient and inefficient enterprises in Vietnam's apparel industry. The study may be a useful tool for managers to improve their performances and effectively allocate resources.
NSTL
