Factors affecting energy constraints for Vietnamese enterprises

This study analyzes the factors impacting energy constraints (EC) that Vietnamese enterprises face, based on World Bank survey data from businesses during the 2009 2023 period. Using a probit regression model, the study examines factors such as firm size, firm age, industry type, ownership structure, financial and institutional constraints, along with power outage occurrences, to identify their relationship with EC. The results show that firm size, manufacturing industry, product innovation, and financial and institutional barriers significantly impact energy constraints. Large enterprises, manufacturing firms, and those engaged in product innovation experience more energy-related challenges due to high energy demands and dependency on stable energy supply. Further analysis reveals differences between small and medium enterprises and large enterprises, as well as between energy-intensive and less energy-intensive industries. Meanwhile, firm age and ownership structure show no clear influence on energy constraints. Notably, financial and institutional barriers are key factors that increase energy constraints, hindering enterprises’ ability to invest in alternative energy solutions.