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Local Business Environment and Enterprise Development in Vietnam: The Role of Macroeconomics

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  • Nguyen Hai Quang

Abstract

This study examines the impact of the local business environment and macroeconomic factors on enterprise development in Vietnam during the period 2006–2022. Based on provincial panel data and the Cross‐Sectionally Augmented Autoregressive Distributed Lag model, the research evaluates the effects across three dimensions: the number of enterprises, capital scale, and revenue. The local business environment factors include the provincial competitiveness index, labor availability, and trade development, while the gross domestic product scale is used to represent macroeconomic growth. The results reveal that local business environment factors exert a positive influence on all three dimensions of enterprise development; macroeconomic growth also contributes to the expansion of the enterprise sector, with evidence of spatial spillover effects among provinces. Accordingly, the study proposes several policy implications to promote enterprise development.

Suggested Citation

  • Nguyen Hai Quang, 2026. "Local Business Environment and Enterprise Development in Vietnam: The Role of Macroeconomics," Review of Development Economics, Wiley Blackwell, vol. 30(4), pages 2288-2301, November.
    • Handle: RePEc:bla:rdevec:v:30:y:2026:i:4:p:2288-2301
    DOI: 10.1111/rode.70113
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