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Informality, business outcomes and heterogeneity among rural non-farm household enterprises in Vietnam: an application of multivariate analysis

Author

Listed:
  • Chi Nguyen Huu

    (The National Economic University, Vietnam)

  • Thu Tran Kim

    (The National Economic University, Vietnam)

  • Bich Tran Thi

    (The National Economic University, Vietnam)

Abstract

This paper highlights some features in terms of informality and heterogeneity of the rural non-farm household enterprises in Vietnam. Multivariate data analysis is applied to the data set of Vietnam Household Living Standard Survey in 2004. The results show that informality is largely explained by firm size, initial capital, and economic outcomes. Cluster analysis is, then, used to identify economic typology of rural non-farm household enterprises. Five distinct groups are identified from the analysis, showing big differentials from one another in terms of economic activities and outcomes, linkages to social networks, and heads of enterprise characteristics. The results are the first-ever empirical evidence on informality and heterogeneity of the rural non-farm household enterprises in Vietnam, which are valuable for policy responses.

Suggested Citation

  • Chi Nguyen Huu & Thu Tran Kim & Bich Tran Thi, 2011. "Informality, business outcomes and heterogeneity among rural non-farm household enterprises in Vietnam: an application of multivariate analysis," Working Papers 18, Development and Policies Research Center (DEPOCEN), Vietnam.
    • Handle: RePEc:dpc:wpaper:1811
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