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The Changing Role of Non-Farm Household Enterprises in Vietnam

Author

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  • Oostendorp, Remco H.
  • Trung, Tran Quoc
  • Tung, Nguyen Thanh

Abstract

Summary In this paper we study the importance of the non-farm household enterprise (NFHE) sector in Vietnam. We do find that NFHEs increase income and reduce between-household inequality. However, the role of the NFHE sector has been diminishing, especially in urban areas, and the NFHEs have been affected by trade liberalization in the period 1993-2002. In terms of policy, this suggests that there is increasing scope for targeting NFHE sector policies at those NFHEs that are in the best position to benefit from the new opportunities in the liberalizing environment.

Suggested Citation

  • Oostendorp, Remco H. & Trung, Tran Quoc & Tung, Nguyen Thanh, 2009. "The Changing Role of Non-Farm Household Enterprises in Vietnam," World Development, Elsevier, vol. 37(3), pages 632-644, March.
  • Handle: RePEc:eee:wdevel:v:37:y:2009:i:3:p:632-644
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    References listed on IDEAS

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    1. Dominique van de Walle & Dorothyjean Cratty, 2004. "Is the emerging non-farm market economy the route out of poverty in Vietnam?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 12(2), pages 237-274, June.
    2. Kokko, Ari & Sjöholm, Fredrik, 2004. "The Internationalization of Vietnamese SMEs," EIJS Working Paper Series 193, Stockholm School of Economics, The European Institute of Japanese Studies, revised 14 Oct 2004.
    3. Elbers, Chris & Lanjouw, Peter, 2001. "Intersectoral Transfer, Growth, and Inequality in Rural Ecuador," World Development, Elsevier, vol. 29(3), pages 481-496, March.
    4. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119.
    5. Vijverberg, WimP. M. & Haughton, Jonathan, 2002. "Household enterprises in Vietnam : survival, growth, and living standards," Policy Research Working Paper Series 2773, The World Bank.
    6. Lanjouw, Jean O. & Lanjouw, Peter, 2001. "The rural non-farm sector: issues and evidence from developing countries," Agricultural Economics, Blackwell, vol. 26(1), pages 1-23, October.
    7. Steer, Liesbet & Taussig, Markus, 2002. "A little engine that could: domestic private companies and Vietnam?s pressing need for wage employment," Policy Research Working Paper Series 2873, The World Bank.
    8. Cameron,A. Colin & Trivedi,Pravin K., 2008. "Microeconometrics," Cambridge Books, Cambridge University Press, number 9787111235767, March.
    9. Thomas Reardon & J. Edward Taylor & Kostas Stamoulis & Peter Lanjouw & Arsenio Balisacan, 2000. "Effects of Non-Farm Employment on Rural Income Inequality in Developing Countries: An Investment Perspective," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 266-288.
    10. Henrik Hansen & John Rand & Finn Tarp, 2004. "SME Growth and Survival in Vietnam: Did Direct Government Support Matter?," Discussion Papers 04-13, University of Copenhagen. Department of Economics.
    11. Stoyan Tenev & Amanda Carlier & Omar Chaudry & Quynh-Trang Nguyen, 2003. "Informality and the Playing Field in Vietnam's Business Sector," World Bank Publications, The World Bank, number 15084.
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    Citations

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    Cited by:

    1. Voeten, Jaap & Haan, Job de & Groot, Gerard de, 2009. "Is that Innovation? Assessing Examples of Revitalized Economic Dynamics among Clusters of Small Producers in Northern Vietnam," MERIT Working Papers 055, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Huu Chi Nguyen & Christophe Nordman, 2014. "Household entrepreneurship and social networks:panel data evidence from Vietnam," Working Papers DT/2014/22, DIAL (Développement, Institutions et Mondialisation).
    3. Nguyen, Duy Loi & Nguyen, Binh Giang & Tran, Thi Ha & Vo, Thi Minh Le & Nguyen, Dinh Ngan, 2014. "Employment, Earnings and Social Protection for Female Workers in Vietnam’s Informal Sector," MPRA Paper 61989, University Library of Munich, Germany.
    4. Singhal Saurabh & Beck Ulrik, 2015. "Ethnic disadvantage in Vietnam: Evidence using panel data," WIDER Working Paper Series 097, World Institute for Development Economic Research (UNU-WIDER).
    5. Ayal Kimhi, 2010. "Entrepreneurship and income inequality in southern Ethiopia," Small Business Economics, Springer, vol. 34(1), pages 81-91, January.
    6. Tran Quoc Trung & Nguyen Thanh Tung & Tran Duy Dong & Phan Hoai Duong, 2008. "Performance of export-oriented small and medium-sized manufacturing enterprises in Viet Nam," Working Papers 5408, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
    7. repec:dau:papers:123456789/11191 is not listed on IDEAS
    8. Higuchi, Yuki & Nam, Vu Hoang & Sonobe, Tetsushi, 2015. "Sustained impacts of Kaizen training," Journal of Economic Behavior & Organization, Elsevier, vol. 120(C), pages 189-206.
    9. Trung, Le Dang & Oostendorp, Remco H., 2017. "Regional Labor Market Integration, Shadow Wages and Poverty in Vietnam," World Development, Elsevier, vol. 89(C), pages 34-56.
    10. Benedikter, Simon & Waibel, Gabi & Birtel, Serge & Bui, Cuong The & Tran, Be Thanh, 2013. "Local Entrepreneurship in Vietnam’s Rural Transformation. A Case Study from the Mekong Delta," MPRA Paper 49866, University Library of Munich, Germany.
    11. Newman Carol & Kinghan Christina, 2015. "Economic transformation and the diversification of livelihoods in rural Viet Nam," WIDER Working Paper Series 064, World Institute for Development Economic Research (UNU-WIDER).
    12. repec:dau:papers:123456789/14463 is not listed on IDEAS

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