Geographic Agglomeration and Colocalization of Two -Digits Manufacturing in Vietnam Using Discrete-Space Models

The paper aims to investigate the geographic employment distribution and the industrial concentration of two-digit manufacturing industries in 2010 among provinces and the main five municipalities in Vietnam using discrete and continuous-space statistics. The evidence shows that Vietnam was characterized by high inequality in terms of employment concentration where the strength flows of dwellers’ migration towards more developed areas reinforced the disparity. It is notable that few locations led the country’s economic growth such as Hanoi, Ho Chi Minh, Dang Nang, Long An, Binh Duong and Dong Nai. Besides this imbalance, an agglomeration bell emerged around Ho Chi Minh favouring a regional integration. Furthermore, the research shows a relative high concentration of low technology intensity industries, whereas medium-high and high technology intensity industries have a relative low employment concentration in Vietnam in 2010. This could be explained as the difficulties of those industries to recruit suitable skilled workers as low trained labour forces characterized the country, which does not favour business localization and start-up.