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An Inquiry into the Development Process of Village Industries: The Case of a Knitwear Cluster in Northern Vietnam

Author

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  • Vu Hoang Nam
  • Tetsushi Sonobe
  • Keijiro Otsuka

Abstract

While village industries are known to have high potential to grow, their growth process has seldom been analysed. This study explores the development process of a rapidly growing village-based garment cluster in northern Vietnam. We found that both the human capital and social capital (measured by the kinship ties with overseas Vietnamese traders) of the proprietors facilitated their innovative entry into new export markets. Furthermore, general human capital acquired by schooling and specific human capital acquired by management experience are found to have contributed to the adoption of a vertically integrated production system, which, in turn, contributed to enhanced enterprise performance.

Suggested Citation

  • Vu Hoang Nam & Tetsushi Sonobe & Keijiro Otsuka, 2010. "An Inquiry into the Development Process of Village Industries: The Case of a Knitwear Cluster in Northern Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 46(2), pages 312-330.
  • Handle: RePEc:taf:jdevst:v:46:y:2010:i:2:p:312-330
    DOI: 10.1080/00220380902952373
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    Citations

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    Cited by:

    1. repec:jic:wpaper:241 is not listed on IDEAS
    2. Amit Basole, 2014. "Informality and Flexible Specialization: Labour Supply, Wages, and Knowledge Flows in an Indian Artisanal Cluster," Working Papers 2014_07, University of Massachusetts Boston, Economics Department.
    3. Khondoker Abdul Mottaleb & Tetsushi Sonobe, 2011. "An Inquiry into the Rapid Growth of the Garment Industry in Bangladesh," Economic Development and Cultural Change, University of Chicago Press, vol. 60(1), pages 67-89.
    4. Shimada, Go, 2014. "A Quantitative Study of Social Capital in the Tertiary Sector of Kobe : Has Social Capital Promoted Economic Reconstruction Since the Great Hanshin Awaji Earthquake?," Working Papers 68, JICA Research Institute.
    5. Babur Wasim Arif & Tetsushi Sonobe, 2012. "Virtual Incubation in Industrial Clusters: A Case Study in Pakistan," Journal of Development Studies, Taylor & Francis Journals, vol. 48(3), pages 377-392, March.
    6. Sonobe, Tetsushi & Higuchi, Yuki & Otsuka, Keijiro, 2012. "Productivity growth and job creation in the development process of industrial clusters," Policy Research Working Paper Series 6280, The World Bank.
    7. Khondoker Abdul Mottaleb & Kaliappa P. Kalirajan, 2014. "Determinants Of Labor-Intensive Exports By The Developing Countries: A Cross Country Analysis," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 59(05), pages 1-22.
    8. Yu Ri KIM & TODO Yasuyuki & SHIMAMOTO Daichi & Petr MATOUS, 2016. "Are Seminars on Export Promotion Effective? Evidence from a randomized controlled trial," Discussion papers 16078, Research Institute of Economy, Trade and Industry (RIETI).
    9. Suzuki, Aya & Vu, Hoang Nam & Sonobe, Tetsushi, 2014. "Willingness to pay for managerial training: A case from the knitwear industry in Northern Vietnam," Journal of Comparative Economics, Elsevier, vol. 42(3), pages 693-707.
    10. repec:kap:asiapa:v:35:y:2018:i:1:d:10.1007_s10490-017-9522-3 is not listed on IDEAS
    11. 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.
    12. Girum Abebe, 2012. "Ownership, Management Practices, Upgrading, and Productivity in the Metalworking sector: Evidence from Ethiopia," Working Papers 009, Ethiopian Development Research Institute.
    13. Fahd Rehman, 2012. "Human Capital and MultifacetedInnovation: Evidence from the Lahore Knitwear Cluster in Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 17(2), pages 63-86, July-Dec.
    14. Khondoker, Abdul Mottaleb & Sonobe, Tetsushi, 2011. "Determinants of Small Enterprises’ Performance in Developing Countries: A Bangladesh Case," MPRA Paper 44006, University Library of Munich, Germany.
    15. repec:bla:rdevec:v:21:y:2017:i:4:p:1401-1424 is not listed on IDEAS
    16. Masaki Nakabayashi, 2017. "Honesty, Diligence and Skill: Risk Sharing and Specialization in the Kiryu Silk Weaving Cluster, Japan," Review of Development Economics, Wiley Blackwell, vol. 21(4), pages 1401-1424, November.
    17. Vu, Hoang Nam & Doan, Quang Hung, 2015. "Innovation and Performance of Enterprises: The Case of SMEs in Vietnam," MPRA Paper 70589, University Library of Munich, Germany.

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