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

Vu Nam (), Tetsushi Sonobe () and Keijiro Otsuka ()

Journal of Development Studies, 2010, vol. 46, issue 2, 312-330

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.

Date: 2010
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DOI: 10.1080/00220380902952373

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