Regional Approach to Developing Industrial Clusters and Poverty Reduction - A Case Study of Vietnam

Abstract

This paper aims to develop a framework for a regional approach identifying the connections from rural areas to urban areas and growth centres, and impact of clusters on poverty reduction. We identify cluster development opportunities in different regions of Vietnam to create a pro-poor impact, in rural areas that otherwise have been marginalised from economic growth. This could include key pro-poor commodities and job generating industries and services. By regional approach, the paper maps growth centres and connect poor rural areas that can benefit from cluster development. Using three case-studies of Vietnam, we recommend a number of regional policies that would promote pro-poor growth and achieve poverty reduction from spill-over effects from urban centres as well as identify investment types for linking rural development with urbanisation and towns, based on cluster initiatives.