We found that pure technical efficiency gained by Vietnam’s seafood processing companies is still low (around 40%-60% on average). This  indicated a huge gap within the industry. We also analyzed factorial effects resulted from regions, external cost ratios, capital-labor ratios, wages, and company sizes. Three remarkable findings are: (i) ownership seems not to affect technical efficiency; (ii) Northern companies operate less efficiently than Southern ones and; (iii) larger-scale companies perform better than smaller ones.

Answering the question about the efficient level gained in Vietnam’s seafood processing industry has been the goal of both empirical economists and policy makers. Such a question is then simplified into two steps: (i) the way to measure efficiency and (ii) specific characteristics of Vietnam’s processing industry.

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