SPATIAL CLUSTERING OF MANUFACTURING FIRMS IN VIETNAM

Abstract

Recently, effective cluster growth has become a critical component of industrial development, requiring the attention of emerging academics. Thus, the study aims to identify industrial clusters that have occurred due to the expansion of manufacturing industries at the industrial district level in Vietnam. The work is theoretical and guided by experimental indicators and spatial regression models. The current page has compiled secondary data spanning the years 2011 through 2020. The research findings indicate that the industrial development process is highly spatially connected at the local level, clearly producing industrial clusters or poles in Vietnam's manufacturing industry development. Additionally, the degree of spillover in industrial development is high, as evidenced by the indicators and testing the magnitude of the linkage, demonstrating the expansion and spillover in industrial development in Vietnam. The authors propose several recommendations based on the analysis's findings to boost both the links and the industrial development process in Vietnam.