1.
REPUBLIC OF THE PHILIPPINES
BULACAN STATE UNIVERSITY
DOCTOR OF PHILOSOPHY IN BUSINESS ADMINISTRATION DISSERTATION
DEVELOPMENT OF AN INDUSTRIAL CITY
THE TANDUC URBAN INDUSTRIAL ZONE MODEL:
Transforming Industrial City to Industrial Zone in Vietnam
Submitted by
Nguyen Tuan Minh
ID: BCC 12250
- March Year 2013 -

2.
ii
ACKNOWLEDGEMENTS
Firstly I would like to thank the Institute Academy of Accounting and Business
Management (IABM) management team, Dr. Tran Van Rung- President, Ms Nguyen Thi
Thu Thuy -International Cooperation Center, the professoriate, all of whom provided me
with tremendous support and assistance. I am extremely thankful for the enormous effort
and learning experience.
I would like to thanks Dr. Andy Ng who helps me improving new idea about Industrial
City controlling and management .
And I would like to thank my chairwomen – Madam Yen Dang who has idea to bring
new city from US to Viet nam .
I would like to thank all interviewers, all expert, staff and seniors of Government, all my
colleague, TANTAO, TANDUC, PHUONGNAM, TASERCO…all people I have met to
complete my dissertation
I would like to express with my heart full of gratitude members of my small family,
wife,son and daughter, special to two sisters - Ms. Minh Tam, Ms. Minh Phuong and my
mother with their love of me, agreed to share the difficulties of time, finance as well as
assisting me in all aspects during the implementation of this dissertation.
Nguyen Tuan Minh

3.
iii
ABSTRACT
In over the last three decades, the industrialization and urbanization have developed
rapidly making East Asia become the most dynamic area in the map of global economy.
In this process, the accumulation of capital and knowledge, on one hand, has resulted in
the appearance of highly centralized industrial cities such as Tokyo, Seoul, Shanghai,
Bangkok, Manila, Kuala Lumpur, or Jakarta, and, on the other hand, the shifting of
investment and industrial activities from these centers to surrounding areas creating a
viral effect promoting the establishment of industrial satellite centers. The lesson learned
from East Asian countries has shown the importance of this relation with respect to the
position of local and national industrialization trend of viral or centralized nature. From
the experience of East Asian countries, valuable lesson can be implied for Vietnam in
general and its Key Economic Regions in particular.
VIRAL INDUSTRIALIZATION IN THE EAST ASIA
Within only a decade, 90% of industrial production activities in Hong Kong shifted to
Guangzhou Province setting up an industrial belt and establishing a number of satellite
cities known as the industrial zone of Zhu Jiang River Delta. In the 80s and 90s,
industries of Taiwan crossed the strait into the Mainland and rapidly turned Xiamen City
of Fijian Province into an industrial center becoming an incentive for growth of Eastern
offshore belt zones. These trends in China also happened in other East Asian cities such
as Tokyo, Seoul, Shanghai, Bangkok, Manila, or Jakarta.... It is forecast that in the next
25 years, Asia surrounding zones will see an increase of 200 million urban citizens, 40%
of the increase of urban citizens in the whole region. Estimatedly, in the next 20 years,

4.
iv
suburban areas of Bangkok shall contribute 53% of urban citizen increases of this city
and, similarly, the rate for Jakarta will be 70%1
.
Urbanization is growing strongly in Asia both in the past and in the futureChâuÁ
MỹLaTinh-
Caribe
BắcMỹ
ChâuPhi
0
5
10
15
20
25
30
35
40
Số lượng các thành phố trên 5 triệu
dân (1975-2000-2015)
1975
2000
2015
Source: UN. World Urbanization Prospects: The 2001 Revision.
The fact in East Asia has indicated that suburban areas with the advantages of lowest cost
of labor and largest of land compared to urban cities will easily become the selected
destination for domestic and international investors. So, there will be two flows of
foreign investment and investment from urban cities to suburban areas resulting in a viral
industrialization, promoting the shifting of economic structure of these regions toward
industry-focus. It should be started with attracting capital, shifting industrial structure,
setting up industrial cluster, moving people, developing supporting services for industrial
zones, and changing small towns into satellite cities.

5.
v
TABLE OF CONTENTS
Chapter Content Page
ACKNOWLEDGEMENTS ii
ABSTRACT iii
TABLE OF CONTENTS iv
LIST OF ABBREVIATIONS vii
LIST OF TABLE ix
LIST OF FIGURES xii
1. THE PROBLEMS AND ITS BACKGROUND
1.1 Research introduction 1
1.2 Problem statement 2
1.3. Objectives of the Research 4
1.4. Significant of the Research 4
1.5 Scope and Delimitation 4
2. THEORETICAL FRAMEWORK
2.1 Relevant Theories 6
2.2. Review of Related Literatures 12
2.3. Review of Related Studies 36
2.4. Conceptual Framework 51

6.
vi
3 METHODS OF RESEARCH AND TECHNIQUES OF
STUDIES
3.1. Research Methods 54
3.2. Research Design 55
3.3. Population and Samples 55
3.4. Research Instruments 56
3.5. Data Collection 56
3.6. Data Analysis and Statistical Treatment 57
4 PRESENTATION, ANALYSIS AND INTERPRETATION OF
DATA
62
5 SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1. Summary 200
5.2. Conclusion 201
5.3. Recommendations 204
BIBLIOGRAPHIES 210
APPENDIX

7.
vii
LIST OF ABBREVIATIONS
- A&M (ACQUISITION AND MERGER )
- ADB (ASIAN DEVELOPMENT BANKS)
- AFTA (ASEAN FREE TRADE AREA)
- APEC (ASIA-PACIFIC ECONOMIC COOPERATION)
- ASEAN (ASSOCIATION OF SOUTHEAST ASIAN NATIONS)
- ASEM (ASIA-EUROPE MEETING)
- BY BOT (BUILD OPERATION AND TRANSFER)
- EU (EUROPEAN UNION)
- FDI (FOREIGN DIRECT INVESTMENT)
- FPI (FOREIGN PORTFOLIO INVESTMENT)
- GDP (GROSS DOMESTIC PRODUCT)
- ICOR (INCREMENTAL CAPITAL - OUTPUT RATE)
- IMF (INTERNATIONAL MONETARY FUND)
- IT (INFORMATION TECHNOLOGY)
- K & L (CAPITA & LABOR)
- ODA (OFFICIAL DEVELOPMENT ASSISTANCE)
- PPP (PURCHASING POWER PARITY)
- PVC (POLYVINYL CLORUA)
- R&D (RESEARCH AND DEVELOPMENT)

8.
viii
- TNCS (TRANSNATIONAL CORPORATIONS)
- UNDP (UNITED NATIONS DEVELOPMENT PROGRAMME)
- USD (UNITED STATE DOLLAR)
- VAT (VALUE ADDED TAX)
- VND (VIETNAM DONG)
- WB, (WORLD BANKS)
- WCED (WORLD COMMITTEE FOR ENVIRONMENT DEVELOPMENT)
- WTO (WORLD TRADE ORGANIZATION)
- UMRT ( URBANT MASS RAPID TRAFFIC )
- BRT ( BUS RAPID TRAFFIC )
- LRT ( LIGHT RAPID TRAFFIC )
- IP ( INDUSTRIAL PARK )
- HTP ( HIGH TECHNOLOGY PARK )
- EIZ (ECOLOGICAL INDUSTRIAL ZONE)

9.
ix
LIST OF TABLE
Table 3.1. Characteristic of Ethnographic, Phenomenological, Elite and
Focus group interviewing
58
Table 4.1. Development of managements 79
Table 4.2. SWOT Analysis 82
Table 4.3. Comparing Tan Duc Vs Related Industrial Park 85
Table 4.4. Price and occupation Ratio 90
Table 4.5 Performance to state 101
Box 4.1 VTEC is a Japanese company 109
Box 4.2. An interview with FOSRAL consulting firm 111
Box 4.3 Quyen Auto Interview 116
Box 4.4. An interview with FOSRAL consulting firm regarding the
possibility to develop auxiliary industry in Tan Duc
119
Box 4.5. An interview with Nguyen Thanh Phong (Master) - Director of
Southern Consulting Firm
136
Table 4.6. Development of industrial sectors strategy 154
Table 4.7. Services- trading-tourist development Strategy 158
Table 4.8. Social Development strategy 162
Table 4.9. Environment development strategy 168

10.
x
Table
4.10.
Traffic development strategy 180
Table
4.11.
Human resource development orientations 186
Table
4.12.
Summary of investment promotion orientations 191
Table 5.1. List of projects recommendation 197

11.
xi
LIST OF FIGURES
Figure 2.1 Silicon Valley - U.S 36
figure 2.2. Phu my hung downtown 42
Figure 2.3. International Finance and Trade Center 46
Figure 2.4. My Phuoc Industrial Urban Zone 49
Figure 2.5. Conceptual Framework from Industrial Park to Industrial City 53
Figure 4.1. CPI Viet nam year 2012 62
Figure 4.2 Vietnam trade deflect 63
Figure 4.3 Economics indicate year 2011-2016- Resource : ADB 64
Figure 4.4 Long an location 67
Figure 4.5. Allocation Industrial Park in DUCHOA District 69
Figure 4.6 Income growth rate in Duchoa 70
Figure 4.7. Rentals of some industrial Park in Duc hoa District 71
Figure 4.8. Company financial Highlights 2007-2011 73
Figure 4.9. Company structure 75
Figure 4.10 Tan Duc Master Plan 78
Figure 4.11 Business Model 80
Figure 4.12 Projects in TAN DUC Industrial Park 89

12.
xii
Figure 4.13 Sustainable growth strategy 147
Figure 4.14 Belt Road HoChiMinh City 171
Figure 4.15 TAN DUC integrated with BRT 173
Figure 5.1. Industrial City Model 195

13.
CHAPTER 1
THE PROBLEMS AND ITS BACKGROUND
1.1 Introduction
After many decades of developing industrial zones, export processing zones, and hi-tech
zones ("industrial zones") in various models that are being applied by many countries
(especially the slower developing ones) in the world, the gap between the rich and the
developed countries has narrowed. This has created the incentive for integration process
to occur as an effective means of mobilizing domestic and foreign resources thereby
promoting economic growth.
As a slowly developing country, Vietnam is also under such a development route and
trend. After 25 years of opening the economy with many positive achievements and
successes of the economy, the impression of establishing and developing industrial zones
is very clear. Today there are 260 industrial zones in the country with 3 Key Economic
Regions in the North, Middle, and South, attracting over 8,500 projects, total capital of
70 billion USD (FDI: 40%), creating over 1.6 million jobs and contributing over 30% of
GDP of the whole country, contribution of 20,000 billion VND per annual to government
budget, etc. A new generation of laborers is coming from industrial zones and becomes
valuable assets to assure the success of industrialization and modernization process in
integration context.
However, there are still many problems, especially from Vietnam's joining in WTO, these
problems have become more severe and significant.

14.
2
In macro aspect, there is currently a huge gap between the roles and functions of
industrial zones and the requirements of industrialization and modernization process and
shifting of economic structure.
Competitiveness, integration and interaction among industrial zones together with the
coordination and support of local provinces to promote advantages and grow have also
shown problems and limitations.
In meantime Vietnam still lacks a strategic vision in development planning, policy
planning and macro-administration, etc.
The consequences of such problems and limitations have caused industrial zone
development strategy scattered, segmented, and lack of focus on key sectors in each
region, resulting in spreading development, wasteful and ineffective investments in
developing industrial zones. Such a situation weakens competitiveness of the economy,
unreasonable use and allocation of resources, land in particular, unattractive investment
climate, and under-developed inner capacities of the economy. Serious environmental
pollution, lack of high-quality human resource, low competitiveness, etc. are the
consequences of such a weak vision and management ability.
1.2 Statement of Problem
Purposes:
- To clarify theoretical background and practice of the development of sustainable
urban industrial zones in Vietnam in general and Tan Duc Industry - Residence -
Service Park in particular.
Tasks:
- Systematize the theories of urban industrial zone development;

15.
3
- Propose solutions and orientations to attract and increase the effectiveness of
investment in industrial zones;
- From changing the quantity of enterprises, change the quality, shift from simply
industrial zone model to phase 2 - modern industrial zone with full services,
commercial activities, and recreation facilities as the foundation to develop a firm and
sustainable business park model;
- Coordinate to the development of other industrial zones to make the pre-condition for
developing an Industrial City.
Research Question
The general problem of the study is How may an industrial city be developed for the
industrial zone in Long An Vietnam?
The following are the specific problems:
1. How may the local economy be developed through the promotion of industrialization
and modernization of industry sectors?
2. How may control and management of urbanization be sustained in an effective
manner?
3. What measures may be adopted to strengthen the environment control and
management in order to preserve and maintain environmental quality and landscape of
industrial zones?
4. How may the technical infrastructure and socio economic facilities to external
services be strengthened?

16.
4
5. What directions may be adopted to manage the growth and development of industrial
industries toward a sustainable development?
1.3. Objectives of the Research
The model of Tan Duc is Industrial - Residence - Service - "Business Park", a typical
urban industrial model in the South of Vietnam, to assess the attributes of an industrial
zone, the relation among human resource, environment and industry, to create a green
and fresh space for people to work and relax in. The research is also intended to find the
factors of success and limitations of this Business Model in constructing, developing and
operating the projects.
1.4. Significant of the Research
Completing theoretical background and practice of developing an industrial zone
in a province in a Mekong River Delta in particular and in Vietnam in general;
Clarifying current situation and limitations of investment activities in industrial
zones in Long An;
Proposing solutions to improve the effectiveness of developing industrial zones in
Long An;
Changing the model of industrial zone into the model of industrial city.
1.5. Scope and Delimitation
In spite of its contributions as mentioned above, this research still contains certain
limitations.

17.
5
- Firstly, regarding the evaluation of Industrial City, due to time limitation, the research
only focuses on Tan Duc Urban Industrial Zone and cannot reflect a majority of
beneficiaries in TAN DUC.
- Secondly, the research focuses only on researching each component in the most
general manner. There are possibly other factors that must be considered in
developing an industrial city.
- Thirdly, as analyzed above, developing an industrial city depends largely on
economic cycle and health condition of investors. In the context of global and
Vietnamese economies still having many difficulties, the applicability of this topic in
developing industrial cities is very challenging.
- Fourthly, this is just a topic of academic scientific research. It is just a measurement
instrument showing relationships and initial, general evaluation of beneficiaries'
opinion toward the development of an industrial city.

18.
6
CHAPTER 2
THEORETICAL FRAMEWORK
2.1 Relevant Theories
The Concept of Government
Williamson (1996; 2003), who agrees with John R. Commons that transaction costs are the
basic unit of analysis in explaining economy, emphasises the importance of relating
economic performance to governance structure. Williamson (1999), emphasises the
importance of understanding public bureaucracy in the analysis. This indicates that the
concept of government deserves much attention. For that reason, this sub-section will review
the concept of government. The discussion is divided into three topics:
(a) Definitions of government;
(b) Functions of government and motives underlying government actions; and
(c) Government and bureaucracy.
Definitions of Government
In the Encyclopædia Britannica, ‘government’ is defined as ‘the political system by which a
nation or community is administered and regulated’3
. Rose (1976) defines the basic functions
of government as foreign policy, weapons, justice, police and revenue. For Brynard (1995),
government functions as a vehicle for political leaders in power to discharge their
responsibilities or to enforce their legitimate powers, and is an extension of the political
structure of the nation state.
James Buchanan, Gordon Tullock and Mancur Olson, who all subscribe to public choice
theory, define government as ‘modes of analysis of collective choice and democratic

19.
7
decision-making’ (Pennington 2000, p.3). Ostrom (1986), who draws
conclusions from Buchanan (1962) and Buchanan and Tullock (1985), suggests that a
democratic government’s decisions reflect the will of the electorate. In other words,
government decisions are the collective choice of the electorate (Pennington, 2000) or, as
Buchanan and Tullock (1962) put it:
“collective action is nothing more than, ‘the actions of individuals when they choose to accomplish
purposes collectively rather than individually’. Institutions such as the state, therefore, are ‘nothing
more than the set of process, the machine, which allow collective action to take place…” (quoted in
Pennington [2000, p.3]).
Functions of Government and Motives Underlying Government Actions
Those associated with public choice theory, such as Olson (1965), Buchanan and
Tullock (1962), believe that government is a medium for individuals to accomplish their
purposes collectively. Olson (1965) defines organisations as “…groups of individuals
with common interest… ”(p.1). He understands organisational behaviour as “…groups act to
serve their interests presumably is based upon the assumption that the individuals in groups
act out of self-interest… ”(Ibid). Thus, public choice theorists assume that bureaucratic actors
(i.e. politicians and government officials) are self-interested agents. Based on this theory,
where desire for power is politicians’ main incentive, government officials continually strive
for budget appropriations (Pennington, 2000). Stoker (1991) argues that budget
appropriation is not the only factor that motivates bureaucrats. He suggests that government
officials are also mission-orientated with a desire to serve the public. Purely self-interested
bureaucrats, on the other hand might concentrate on individual career advancement or
workload reduction. Pennington (2000), whose case study focussed on British government
departments involved in spatial planning by applying public choice theory and adapting

20.
8
Dunleavy’s (1991) model, provides evidence to support public choice theory. His findings
suggest that bureaucrats have interests of their own. They tend to seek various forms of
satisfaction, both material and non-material, including mission accomplishment.
Government and Bureaucracy
Before further discussion, it will be beneficial to consider the general concept of bureaucracy.
Albrow (1970) and Warwick (1974) suggest that it is difficult to give one definition which
encompasses the overall meaning of bureaucracy. Warwick (1974) summarises Albrow’
(1970) findings as,
“After examining a vast amount of writings in the social and political sciences where the
term was used, he concludes that there is ‘no element common to them all which could form
part of a useful definition” (p.1).
In his ‘Dictionary of Politics’, Robertson (1984) explains that Max Weber (Maximilian
Carl Emil Weber 1864 - 1920) was the first to emphasise the theory of bureaucracy in
modern society. Most subsequent research on and theories about bureaucracy have discussed
Weber’s theory of bureaucracy, which is based on basic organizational principles. Robertson
suggests further:
“The most important (principles) are: (1) that office-holders in an institution are placed in a
clear hierarchy representing a chain of command; (2) that they are salaried officials whose
only reward comes from the salary and not directly from their office;(3) that their authority
stems entirely from their role and not from some private status, and that the authority exists
only in, and as far as it is needed to carry out, that role;(4) that appointments to bureaucratic
positions are determined by tests of professional skill and competence and not for

21.
9
considerations of status or patronage; (5) that strict rules exist on the basis of which
bureaucrats make their decisions, so that personal discretion is minimised; and (6) that such
institutions collect and collate detailed records and operate on the basis of technical expertise
(Robertson, 1984, p.44, emphasis added).
Warwick (1974) tries to distil the meaning of bureaucracy from various opinions and
suggests that the term:
(a) is used to capture the notion of a social structure which confronts most members of
an organisation and possibly prevents them from feeling able to be any more than
subordinates, without any real control over the social processes that are going on within the
organisation;
(b) evokes the process whereby members have their position and degree of subordinacy
defined, their jobs categorised, separated and changed, and the manner in which they relate to
other members of the organisation regulated;
(c) points directly to the nexus of control in an organisation, the members who make the
decisions and are responsible for initiating activity, and the source of moves to retain
centralised power and rigid rules. Bureaucracy in this third sense is fundamentally supported
and sanctioned by a legal structure (with its apparatus of law enforcement) which is an
element of the wider society in which the organisation is placed. Bureaucracy as such may,
however, to some extent be able to control this legal structure, and use it as a means of
negotiating with subordinated about changes in the process.
A discussion of bureaucracy is incomplete without explaining what is colloquially called ‘red
tape’. ‘Red tape’ is a fuzzy concept which has different meaning for different people. Its
French equivalent is la paperasserie or an unsatisfactory routine. Red tape is also commonly

22.
10
conceived as (a) delay, indecisiveness, any action that contributes to inactivity, (b) strict
routine and paper work leading to ineffectiveness, rigid application of rules, (c) bureaucratic
mean-spiritedness, and (d) laws, rules, regulations, procedures and forms that are seen to be
cumbersome and excessively complex. In short, ‘red tape’ is usually defined in the idiom of
inefficiency (Brynard, 1995). Page (2003) and Butterworth and Horne (2003) suggest that
almost every single word in the bills of statutes of laws and draft of policy decisions is
prepared by government official. Thus, bureaucracy, can also include the communication
systems between politicians, who are the decision makers, and the electorates (Kelly, 2004;
Gajduschek, 2003).
Bureaucracy is also linked to accountability. Every public office is responsible for ensuring
that its operation is financially and managerially accountable. Generally speaking,
accountability means a person, or group of people, can be held to account for their conduct.
There are at least four types of accountability, applicable to public administration: (a) public
accountability that requires those who are responsible to draft and/or carry out policy and
obliges them to give an explanation of their actions to the electorate, (b) financial
accountability that requires them to abide by the regulations with which resources are
entrusted to them, (c) legal accountability, which is accountability to a court of law, or the
equivalent, for the powers entrusted to them, and (d) managerial accountability, by which
officials are obliged to achieve defined managerial targets and meet their resource utilization
objectives (Glynn and Murphy, 1996). As a result of accountability, all matters at
government offices, including even the simplest service cannot be rendered without
procedure being followed. This practice is related to the idiom of red tape, use of forms and
observation of rigid procedures (Brynard, 1995; Cheung, 1996). Bureaucracy is then defined
as a system to protect public interest.

23.
11
In explaining government bureaucracy, Williamson (2000) puts it that“…(it) remains a
poorly understood condition…” (p.611). Pennington (2000) explains bureaucracy as a
means of division of power or government administration setup, referring to the British
planning system, suggesting that government functions are divided into several agencies
operating at both the national and local scale. Claver et al. (1999), who see bureaucracy as
the whole public administration system, suggest that the governmental hierarchical
administrative system and agencies are divided into local, provincial or regional, national and
even trans-national agencies. In some cases some agencies are autonomous (Cheshire and
Gordon, 1998). Thus, an important government task is to co-ordinate functions split between
local or regional authorities (Cheshire and Gordon, 1998; van der Krabben and Lambooy,
1993; van der Krabben, 1995), coordinate policy and implementation (Vigar and Healey, 1999;
Cheshire and Gordon, 1998), and to coordinate between departments (McHugh, 1997) or
simply between individuals in administration (Cheung, 1996).
The above issues are associated with what North (1990) terms a ‘problem of co-ordination’.
In understanding the problem of public administration, it is essential to appreciate that
government administration can be divided into hundreds of departments, employing a
significant number of employees. As the number of departments, divisions and personnel
grows, co-ordination becomes highly problematic (Brynard, 1995). Indeed, co-ordination has
become more complicated with ever-expanding state responsibilities (Glynn and Murphy,
1996).
There are differing opinions as to how to explain the problem of co-ordination within the
government administrative system. Cheung (1996) sees it merely as competition between
the different interests of individuals. Ismail (1994) and van der Krabben (1995) see it as
competition of interests between agencies. Glynn and Michael (1996) look at it in an entirely

24.
12
different way. They argue that every government department has a different role to play in the
administrative system. Each department has different rules and standards. In an effort to
provide the best service possible the differences between rules, regulations and standards in
different government departments may result in decisions and actions that conflict with each
other.
Niskanen (1971) notes that the term ‘bureaucracy’ is sometimes used in reference to the
organisational structure, methods and behavioural characteristics of the bureau. However, he
argues that the term soon became used to identify a form of government ruled by officials.
However, judging from his writings, Oliver Williamson inclines more towards defining
bureaucracy as a form of organising economic activity.
2.2 Review of Related Literatures
2.2.1. Cluster
World economy has stepped into a new era with the application of revolutionary results
of information technology. Global market is gradually expanding at a more rapid rate
more than ever. Companies can easily take advantages of lower labour costs and resource
allocation comparing with other regions to compete in term of cost of good sold. People
no longer have to focus on regions with abundant resource allocation and lower labor
costs in developing their businesses. Perhaps, is the new economy gradually erasing
geographic role in strategic decision making? In fact, regional competitive advantages are
shifting toward another orientation. It is the establishment of centralized industrial zones
(autonomy) which is called as clusters by Michael E. Porter, an Economic Professor
of Harvard University.

25.
13
Definition of Industrial Cluster
The notion of integrated centralized industrial development (agglomeration) by many
industrial entities in a certain geographic area has been introduced over a century ago by
the theory of Marshall (1) (1890). Through many stages of evolution over time, this
theory has been promoted to a new level by the organization of cluster-based industrial
development (2). Today, there are many different definitions of a cluster (3) in the world,
for example:
 Michael Porter (1990) - the as-known-as father of modern theory of competition,
defines an industrial cluster as an array of inter-related companies/enterprises,
specialized providers, service suppliers, and related organizations in a particular
centralized industry in a certain territory (4). This definition of industrial cluster is an
important factor in Michael Porter's famous theory of competition.
 Sonobe and Otsuka (2006): A geographical concentration or localization of
enterprises producing similar or closely related goods in a small area.
 Kuchiki (2007): Geographic concentration within a nation or region of inter-
connected companies, specialized suppliers, service providers and associated
institutions in a particular field.
It can be seen that 03 definitions of industrial cluster have a common as the centralization
in a certain territory of inter-related enterprises in a business field. However, industrial
clusters are different in term of organization. From each viewpoint, scholars base on the
organization form to categorize clusters. Accordingly, a cluster is categorized into two
groups: (i) vertical integration (focus on commercial relationship among enterprises in

26.
14
the cluster); and (ii) horizontal integration (focus on similar input conditions (resources)
among enterprises in the cluster). Clusters can be categorized very differently.
Today, the concept of cluster has affirmed the advantage of a region by centralizing
industries, not depended only on resource allocation and labour resource that other
regions did not have. It is not by chance that Hollywood becomes the capital of motion
picture industry, Wall Street becomes the center of financial industry, Silicon Valley
becomes the center of hi-tech industry, and North Italy becomes the center of high-end
shoes. Since companies' ability to control cost price is more and more equal, their
competitiveness has been depending on the output of products and services, which is the
determinant of a company's innovation.
First of all, we need to understand what a cluster is? According to Porter, a cluster is an
array of inter-related companies in a particular centralized industry in a certain territory.
Around them are specialized providers, service suppliers, and facility providers. A cluster
covers all of distribution channels and customers, and in addition to supporting
manufacturers, those companies in the same technical fields shall use similar input. In a
cluster also exists governmental and non-government agencies, universities, technology
institutes, research centers, commercial associations, and so on, to provide education and
training, information, research and technical support services.
A cluster rarely follows a sector standard system since it normally ignores certain
relevant entities as well as important competitive relationships. In a cluster, competition
exists independently of cooperation. Companies compete hard, however, they do
cooperate closely with research centers. To gain a competitive advantage in the new
economy, the strengths of a cluster is:

27.
15
 Making companies aware of information, technologies, and vendors, through
which increasing production and product quality; As mentioned above,
competitive advantages have transformed from the advantage of tangible
resources to knowledge resource.
 The close relationship between manufacturers and researchers in a cluster may
promote innovation of products in production process and in company structure.
A cluster helps companies share research and development costs and increase
efficiency. On basis of such a common knowledge, technologies of a cluster are
enhanced and research and development activities are promoted by every entity
attracting human resource and knowledge from other regions.
 When technology level is improved, a cluster shall attract other companies to
participate in as they can see the advantages of infrastructure, technologies and
finance available as well as knowledge, know-how and desirable workmanship.
By joining in a cluster, companies can make sure their ability to review
technologies and markets.
2.2.2. Business Park
In the world, Business Park is the common name for Industrial Park, Science Research
Park, Hi-Tech Park, Office Park, Business Park and similar zones such as
Warehouse/Distribution Park, Logistics Park, Incubator Park or Corporate Park. In any
name, a Business Park is the perfect combination of two concepts (1) Park and (2)
Business. A Park is the place intended for relaxing, recreation, sport and entertainment
purposes. A Business place is a place planned and designed for working officers and

28.
16
modern production facilities for purposes of exchanging, cooperating and trading in
relation to high-knowledge products.
Business Park nowadays is the result of a long development process dating back to
original industrial zones in the 20th century. Business Park nowadays has become a
structure of sustainable development, a very flexible landscape for commercial and
trading activities as well as living and relaxing activities of human. Business Park is the
incentive for socio-economic development in many communities, especially those in the
context of urbanization process.
In Vietnam, a Business Park is also known as an industrial zone, export processing zone,
hi-tech zone, free trade zone or other commercial zones. Fundamentally, these are of
original Business Park model with low standards and quality.
2.2.2.1. Generations of Business Park
On basis of the scale, attributes and development features, it can be said that Business
Park has experienced 4 generations of development upward.
2.2.2.1.1. First Generation Business Park
1st-generation Business Park originates from a structure known as an industrial zone
locating in suburban area, consisting of facilities to serve industrial, warehousing or
trading activities.
The area is divided into land lots and sold to enterprises, constructed as per model
structure, and offered for lease. Such a structure may still be considered perfect in general
idea, however, its planning and architectural standards are low: high-building coverage
ratio with firm structures and large-scale open warehouses allocated scatteringly; lack of
public utilities; low coverage ratio environment landscape. Basic functions are industrial-

29.
17
related while green and functional areas are inappropriate; 1st generation Business Park is
desert during the day and night and cannot be assured high quality environment and
service standard. Business Parks of this generation are still being constructed, especially
in developing countries, mainly for industrial activities instead of research, trading or
service purposes.
In Vietnam, most of current industrial zones are 1st generation Business Park.
2.2.2.1.2. Second Generation Business Park
Learning from the experience in 1st generation, 2nd generation Business Park typically
uses urban landscape with unique quality of community life (stores, clubs, sport
stadiums, schools, etc.) as the key to the success of a meaningful design. Structures are
allocated surrounding one or a series of open landscape (highway, lake, garden or square)
with unique artistic values uniform to architectural philosophy and advanced planning:
Beautiful Architecture will result in success in business. 2nd generation Business Parks
are gradually covering remaining areas in the suburban to recover and add more
liveliness to suburban areas and eliminate the impression on bad landscape and
architecture of industrial zones. E.g., Chiswick (London, U.K.), Irvine Spectrum
(California, U.S.).
2.2.2.1.3. Third Generation Business Park
Scale, location and building coverage ratio are factors to differentiate 3rd generation
Business Parks from previous generations. Low cost area of 50-200 ha for a Business
Park is only available in suburban area near highways or airports. Due to its low cost, a
Business Park can reduce building coverage ratio to 25-30%, in that manner, the concept
of a park shall be dominant over the concept of business. 3rd generation Business Parks

30.
18
follow the principles of general planning and construct the infrastructure of a new small
urban area (which is considered as part of a 1st generation Business Park). Public utilities
are focused in one unique location or small urban area to serve development units. These
development units with various densities and area scale shall create the diversity of users
in a Business Park.
Such development model is not available in existing urban areas. E.g., Stockley
(Heathrow, U.K.), Meridian (Carolina, U.S.).
2.2.2.1.4. Fourth Generation Business Park
Production areas and hi-tech research centers need to attract more and more experts and
high-quality workers. Such a comprehensive development zone includes offices,
production zones, housing zones, stores, schools, recreation facilities... have appeared.
They are 4th generation Business Parks with the autonomy of a inter-related combination
of development units, generally, it is similar to a small urban area with its own
boundaries. All of 4th generation Business Parks have reached very high technical and
social organization levels and can become a unique location of values and importance in
the whole region. E.g., Marina Village (California, U.S.), Edinburgh (Edinburgh,
Scotland).
The concept of developing 2nd and 3rd generation Business Park has been applied in
some Asian countries such as Japan or Singapore. In Vietnam, new Business Parks are
known in some projects such as Saigon South Scientific Park or Hoa Lac Hi-Tech Park.
2.2.2.2. Development Principles of Business Park

31.
19
To achieve a business effective development and satisfy the needs of sustainable
development, successful Business Parks normally follow the below principles of
development:
Mixed and flexible development of functions (in planning land use and structure design)
to serve various demands of industrial, office, trading, and service sectors, etc. and other
utility works to meet diversified needs of workers in those sectors.
- Park-based planning and design: nice architectural structures locate between
beautiful, familiar and harmonic landscape; A Business Park has low building
coverage ratio with much area for green trees and open public landscape to create a
perfect environment for human to live, work and relax as well as to establish a
favorable environment for development and cooperation within and among
enterprises;
- Developing high quality technical infrastructure;
- Reasonable price: In addition to benefits offered by Business Parks, land rental price
and service fees and technical infrastructure are important factors to decide rental
price for enterprises.
2.2.2.3. Benefits of Business park
2.2.2.3.1. Benefits to enterprises
- Business parks provide high quality landscape and working environment in
compliance with increasing demand of enterprises. A Business Park consists of not
only impressive architectural structures and revolutionary landscape for the use and
provision of comprehensive services to all of participating enterprises. A Business
Park facilitates perfect conditions for enterprises and workers.

32.
20
- With a system of beautiful landscape surrounding modern structures, a Business Park
will create a totally new impression and viewpoint over the enterprises.
- Inside and outside technical infrastructure with the most advanced structures will
facilitate favorable conditions for workers in any place in a Business Park.
- A Business Park provides high-quality landscape and public utilities to serve the
enterprises. This will reduce initial cost of investment of enterprises and it is this
public landscape that serves as the bridge to important cooperation contacts and
facilitates conditions for enterprises to develop together.
- A Business Park always ensures safety and security for activities of enterprises from
its gate to each structure. This is one of important and necessary conditions for
research and hi-tech centers.
- Enterprises in a Business Park will have more favorable conditions thanks to
preferences of taxes, finance or development policies of the Government. Supporting
services in a Business Park help enterprises gain competitive advantages by having
the best access to the market, labour source information, latest achievements of
scientific research and limitation of risks.
2.2.2.3.2. Benefits to the environment and society
In parallel to benefits to enterprises, a Business Park always offers great benefits to socio-
economic development and environment in the whole area.
- A Business Park is the incentive for socio-economic development in the whole
region: it provides jobs and trains the laborers, promotes urbanization process,
promotes the growth of local and external enterprises, and promotes the development
of commercial and other related activities.

33.
21
- A Business Park provides high quality landscape and working environment for the
region on the principles of protecting the environment, protecting natural resources
and maintaining ecosystem.
- A Business Park provides public utilities and services not for individual use but for
public use in the community.
- A Business Park always seeks to integrate the community to develop together.
2.2.2.3. Functional Components of a Business Park
2.2.2.3.1. Operating and Service Center of a Business Park
Operating and service center consists of management structure of a Business Park (of its
investor or developers), supporting service structures to enable the enterprises to develop,
cooperate in trading, financial, market, communication, transport, technology transfer,
human resource training and supply activities, etc. and other related services for such
purposes as presentation, product introduction, conference, seminars, security, etc.
This center is typically located in the main entry in combination with green zone and
front landscape and symbol to enhance the image of the Business Park. Structures in this
center are planned as high-rise building to make it an impression of the main entry gate
landscape. Building coverage ratio in this area is at average and low level.
2.2.2.3.2. Public, recreational, sport and cultural area
This area serves not only the needs of workers in a Business Park but also the needs of
people from neighboring locality, including such public structures as: retail stores,
supermarkets, restaurants, shops, biscuit shops, hairdresser's ship, laundry shop, nursery
school, health center, cultural and sport buildings, clubs, swimming pools, sport

34.
22
stadiums, fitness centers.... there are also jogging roads, walking pavements and
playground. Exclusive hotels are also set up in many Business Parks.
Above structures are developed to attract and facilitate conditions for the best and most
convenient services for people inside and outside the Business Park: near the operating
center, near the residential area, near the main entry gate or direct access to external
transport.
If residential units are planned in a Business Park, these units must become the center of
the area with the systems of schools and system.
Natural and artificial landscape network is paid special attention to create a feeling of
comfort and familiarity for laborers. This contributes significantly to improve the
capacity of laborers and cooperation among them - one of the basic goals of a Business
Park.
Building coverage ratio in this area is low and average with low-rise buildings (1-2
storey).
2.2.2.3.3. Office, Research and Scientific Areas
These areas are intended for enterprises to hire in the Business Park, including land lots
and construction structures that are planned and designed in a uniform, continues and
multi-functional manner. These structures are focused surrounding or in series to green
zone, water lakes and square, etc. to ensure the highest effectiveness of environment and
landscape for the Business Park.
Since the use of human resource is increasing, parking lot is an indispensable part in this
area which has to be planned and designed in a uniform manner with structures. In many

35.
23
Business Parks, parking lots become a space complex and helps in reducing building
coverage ratio.
Structures in this area can be arranged into multi- or hi-rise storeys to save costs and
increase its usefulness. Flexibility, multi-functionality, high convenience and energy-
saving are indispensable factors in these structures. Green and smart structures are
applied widely.
Building coverage ratio depends on planning ideas and the landscape, however, it is
average.
2.2.2.3.4. Goods Storage and Distribution Area
This is an area specifically designed to store and distribute goods, including a system of
low-rise warehouses and high-rise walls. This is also the center to introduce, carry out
transactions and trade in enterprises' products.
Storage structures are of large-scale and very large-scale. In front of the building, there is
an office area for product transaction and introduction (accounting for 5-10% of building
area). In the back of the building, there is a storage with access routes for transporting,
loading and unloading goods and parking lots.
Architectural form and green landscape will be focused on the front of the building
structure (land lot). Many buildings take advantages of the front of commercial centers
and office areas to reduce the pressure on the back. Building coverage ratio is at average
level.
2.2.2.3.5. Industrial production area
This is the centralized area of industrial production enterprises, application manufacturers
and scientific and technology firms.

36.
24
Production plants have 1-2 storey and are large- and very large-scale buildings.
Some may be ranked as high-rise buildings (7 storeys) and are constructed for light
industrial sectors such as electronic assembly, garment and textile. Truck parking lot and
goods loading unloading yards account for a large area of the land and are typically
bordered by a green zone to improve the landscape.
Building coverage ratio is at average level, 10-15% of the land area is used for green
zone and landscape.
2.2.2.3.6. Park and Green zone
Green park and water surface are indispensable in any Business Park. This is the core
assembly of the planning and architecture of a Business Park. Natural landscape of the
zone preserved and improved to maximum extent, combining with artificial landscape
surrounding buildings and creating an ideal environment for anyone to live and work
here.
Besides the role of landscape, water lakes in Business Parks are also important to control
water and maintain natural ecological systems.
Beautiful and attractive landscape and environment are leading standards of a Business
Park as well as the most effective economic, important and indispensable tool to create a
unique image of the Business Park. Values of the Business Park in the market and
community depend largely on the quality of surrounding environment. Minor structures
such as points of stay, book booths, and sightseeing locations... may be set up in
appropriate locations in the Park.
2.2.2.3.7. Infrastructure provision and maintenance zone

37.
25
This zone consists of structures to provide and maintain engineering aspects of the whole
Business Park: water station, sub-station, waste treatment station, petrol station, gas
station, hot water supply station, etc. Together with the development of information
technology, current Business Parks are providing hosting and satellite cable, TV, video-
phone, Internet and broad band connection services to each lot.
2.2.2.3.8. Traffic system
Traffic in a Business Park includes: road, railway and terminal system (if any), parking
lots and centralized garages outside the lots, bus stations and terminals. Walking or
bicycle streets separated from road system and allocated in many places in a Business
Park.
If a Business Park has large-scale transport facilities (such as in Warehousing zone or
goods distribution zone), transport routes can be separated from traffic routes for
passengers and commodities.
2.2.2.3.9. Housing and residential zone
This zone as developed in a Business Park is of 3rd and 4th generations, including high
quality housing zone (low-rise) and relevant service structures. In large-scale Business
Parks, this zone is developed as a completed unit with full functions: public center,
commercial, service, administrative, school, flower garden, square and houses of various
types to create a high quality living environment for laborers here.
2.2.3. Ecological industrial zone
An ecological industrial zone (EIZ) is defined as:
EIZ is a community of manufacturing and service enterprises with close relations on
similar benefits: toward high quality social, economic and environmental activities via

38.
26
the cooperation in managing issues, environment and natural resources. Through closely
cooperative activities, the community of an EIZ shall achieve a greater comprehensive
result than individual effects of each enterprise
The objectives of an EIZ are to enhance economic performance as well as reduce
environmental impact caused by its member enterprises. EIZ is the incentive for
industrial development in particular and socio-economic development in general toward a
sustainable development in the whole region.
2.2.3. 1. Basic principles of an EIZ
The development of an EIZ must follow the following fundamental principles:
 Developing an EIZ in compliance with the rules of natural ecological systems
- Creating ecological equilibrium from establishing, developing the zone (location
selecting, design planning, construction, technical infrastructure, enterprise selection,
activities, management, etc.)
- All of activities in relation to an EIZ must be carried out synchronously and
uniformly with the principle of environmental protection and in conformity with
natural ecological systems.
 Establishing an industrial ecological systems inside and outside an EIZ
- Developing a production circulation process among enterprises in the zone as well as
those inside and outside the zone
- Minimizing and recycling the use of energy and water resources; Taking advantages
of excess energy and water from production process; Widely applying recyclable
energy: solar, wind, water powers, etc.

39.
27
- Minimizing the use of resources, especially non-recyclable ones; Encouraging the use
of recyclable materials; Restricting the use of hazardous materials
- Minimizing emission level, especially hazardous materials
- Collecting and treating waste materials with environment-friendly technologies;
Recycling waste materials to the maximum extent.
 Developing enterprise community in an EIZ
- Developing close and comprehensive cooperation among enterprises of an EIZ as
well as those inside and outside the zone; exchanging information and common
service fees such as: waste management, human resource education, environment
information system, and other supporting services
- Encouraging clean production and innovation of environment-friendly technologies
- Encouraging enterprises and individuals to cooperate to protect and develop the
ecology inside and outside EIZ
- Developing a mix of functions (industrial, service, public, housing, etc.) and taking
the maximum advantages of the inter-relation among them.
2.2.3. 2. Benefits of an Ecological Industrial Zone
2.2.3. 2.1. Benefits to enterprises
 For enterprises as members and owner of an EIZ
- Reducing production cost, increasing production efficiency by saving costs, recycling
materials and energy; recycling and reusing waste materials; This promotes the
competitiveness of products.

40.
28
- Achieving higher economic performance due to cost-sharing with common services,
such as: waste management, human resource training, supply source, environment
information system, and other supporting services.
- Small and medium-scale enterprises often meet with difficulties in accessing
information, know-how and technical secrets. Comprehensive solutions in the
development of an EIZ shall help them overcome such difficulties and receive
investment for development.
- Benefits to member enterprises also enhance the value of real estates and profitability
to the owner.
2.2.3. 2. 2. For the industry in general:
- EIZ is an incentive for developing industrial economy in the whole region: increasing
added value to industrial production and service, attracting investment, increasing
jobs...
- Facilitating conditions to support and develop minor industries in locality
- Promoting the innovation, research and application of advanced new technologies.
In summary, an EIZ can offer competitive advantages and important benefits in the
context that industrial zones in Asia fail to satisfy the demand of industrial development
in new era.
2.2.3. 2. 3. Benefits to the environment
- Reducing sources to cause environmental pollution; reducing waste and the demand
for natural resources thanks to new achievements of clean production, including:
minimizing pollution, saving energy, managing waste, recycling resources, and other
new methods of environment and technology management

41.
29
- Ensuring ecological equilibrium: The establishment and development of EIZs (from
selecting location, planning, constructing, technical infrastructure, selecting
enterprises, operation and management...) are complying with actual conditions and
ecological characteristics of the construction land and surrounding areas.
- Improving higher targets of environment: Each EIZ has its own model of
development and management to continuously improve its basic features and protect
the environment.
2.2.3. 2. 3. Benefits to the society
- EIZ is an incentive for socio-economic development in the region, attracting large
corporations and creating more jobs in industrial and service sectors.
- Creating incentives and supporting local development projects with such activities as
human resource training, housing development, and improvement of infrastructure,
etc.
- An EIZ is a natural center of industrial ecological network. Economic and
environmental benefits offered by an EIZ shall create a new face of cleaner and more
attractive environment for the whole region.
- An EIZ shall create conditions for cooperating with state agencies in making new
appropriate policies and laws on environment and business.
2.2.3. 3. Types of ecological industrial zone and functional components
Each EIZ has its own characteristics in relation to its environment. Base on these, EIZs
can be classified into five main categories as follows: Agricultural, recycling, recyclable
energy, power plan, oil filtration, and chemical material EIZ [6]. In which, agricultural

42.
30
and recycling EIZs are strategic selections for industrialization process in such
developing countries as Vietnam.
2.2.3. 3. 1. Agricultural EIZ
An agricultural EIZ focuses on food processing industries using much energy, water and
biomass to create circulation flows of waste product, by-products or finished products.
Next is industries supporting a sustainable agriculture and maintaining and innovating
socio-economic environment in rural areas. Structure of an agricultural EIZ includes:
- Enterprises to collect, process and distribute food and food stuffs.
- Enterprises to use waste products, by-products to produce biogas, compost, etc.
- Production areas for food, food stuff, biomass that are specifically designed or near
the zone.
- Other relevant enterprises such as those using bio-materials (oil, bamboo, etc.) or
recycling firms.
- Suppliers of devices, energy, materials and agricultural and rural development
services.
2.2.3. 3. 2. Resource recycling EIZ
Resource recycling EIZ is a great chance from discontinuing the definition of waste
material and cleaning urban environment. This zone offers great environmental and
economic benefits from the management, recycle and reuse of industrial, commercial,
domestic and public wastes in a systematic manner. This zone is a system recycling waste
values, creating business opportunities and jobs, generating new profit, and bringing
environment and public health efficiency. Core issue is how to change waste material into
marketable products and materials. Main structure of a resource recycling EIZ includes:

43.
31
- Main recycling enterprises: collect, process and distribute by-products from waste
materials.
- Manufacturing firms: use by-products for manufacturing.
- Other relevant enterprises: use other output of enterprises in the zone such as excess
energy, water or other waste.
- Manufacturers of devices for recycling and reusing process.
- Other relevant enterprises: repairing services and environmental consulting, provision
of investment capital, services, etc.
Structure of an agricultural and resource recycling zone is presented in a inter-related line
among enterprises that are able to use by-products or waste products from each other.g
Rural areas in Mekong River Delta have advantages of agricultural production and
natural conditions which shall be an appropriate location for developing industrial zone
model as an agricultural EIZ. Besides, to minimize waste, we need to develop a recycling
industry and develop the model of resource recycling EIZ.
2.2.3. 4. Mixed development and flexible functions
Mixed development and flexible functions is the key to the success of a Business Park.
Industrial zones in Vietnam cannot survive only the industrial function. They should also
diversify to other functions such as commercial, service, public utilities, and residential
housing.
On large-scale basis as a small urban area, the diversified development of functions is
mutually supportive (production, trading, public and housing) in a Business Park will
ensure the sustainability and practicality of the project. In the context of Vietnam when

44.
32
agricultural industrial zones are 50ha small-scale zones, the development of these zones
needs to be under a master plan to supplement the components that they lack.
2.2.3. 4. 1. More area for environment and landscape
The philosophy of good working environment shall ensure high performance is applied
as a competitive advantage of a Business Park. Low building coverage ratio, high
coverage of trees and open space, beautiful architectural and landscape design... have
transformed a Business Park into the most attractive and unique location in the region.
This is in agreement with the principles of sustainable development.
2.2.3.4.2. Appropriate application of advanced solutions to protect the
environment
In the industrialization process, the application of latest advanced technologies to protect
the environment and ecology is indispensable in Vietnam, however, it is necessary to
select reasonable and appropriate solutions to
ensure environment protection and economic performance.
2.2.4. Criteria of sustainable urban area
Sustainable development has been a prioritized topic in discussion over environmental
policies since 1980s when the movement of environmental protection has been started.
The most common definition of sustainable development is introduced by Brundland in
Our Common Future as “development to satisfy current needs but not affecting on the
ability of future generations to satisfy their own needs.”. Promoting sustainable
development is estimating future solutions and though changing attitude, policy
innovation, society transformation, and economy restructuring to ensure a sustainable

45.
33
future. Certainly, these objectives are different in different societies (over time and space),
however, they share common points.
A sustainable urban area may be considered as: “An urban area that reaches the unity of
sustainable framework in three aspects of economy, society and environment, to enhance
the quality of life of current generation but not affecting on the development needs of
future generation”. Specifically, an urban area is sustainable when it has reached the
following objectives:
- Providing sufficient conditions for human development and enhancing quality of life
for the people;
- Providing a sufficient, safe, healthy and attractive living environment for the people;
- Mitigating impact on the ecology of the area; Protecting, preserving and recovering
cultural, natural and historic heritages;
- Promoting equality, closeness and integration in terms of territory and society;
- Planning and managing uniformly, promoting the participation of social organizations
in territory management;
- Developing friendly relationship in the region.
2.2.5. Lessons for the development of urban areas in Vietnam
In Vietnam, developing the industry only in large cities may cause serious effects on
background of agriculture while focusing only on the industrialization of rural area shall
be difficult to resolve inner problems of rural areas. It is necessary to come up with a
comprehensive solution on basis of the whole economy. Several years in the past, in the
provinces in suburban of Hanoi and HCM City, two biggest economic centers of the

46.
34
country, industrial zones were established that promoted local economy toward
industrialization and shifted economic structure, promoted the process of urbanization.
As such, upon considering the process in previous East Asian countries, Vietnam is
experiencing a phenomenon of belt-region industrialization and urbanization process. A
number of issues to be considered and oriented are as follows:
 For Vietnam, if external industrialization is not strongly developed, it will be subject
to the trend of centralized industrialization and bottleneck issues. It is a bottleneck
when capital is not invested in business production but in speculative activities such
as real estate while there are investment opportunities in external region that are not
exploited. Another bottleneck is when rural laborers cannot get out of agricultural
production. Land bottleneck is when most of people live and work in crowded urban
centers that cause great pressure on the traffic, services and infrastructure....
 In suburban areas of Vietnam, there are sufficient conditions for industrialization and
urbanization process, however, it lacks incentives from the State in developing
infrastructure to attract foreign investment and production activities from the center.
In Philippines, private sector has proven its importance in developing suburban areas
while in Thailand, the Government plays decisive role in orienting the development2
.
In Vietnam when private sector is still weak and there is no strong enterprise such as
in China, the role of State in creating such belts and promoting regional
industrialization is especially important.
 Experience of East Asian countries has shown a lack of cooperation and connection
in implementing belt-region development programs that has delayed industrialization

47.
35
and urbanization process. Weaknesses are: vertical connection among central
government, ministries, departments and local governments and horizontal
connection among local governments.
 In case the Push condition is satisfied from the city center outward, the matter is
that whether local provinces have enough capacity to grasps the opportunity of this
resource movement or not. Here, local governments shall play a decisive role.
Investors are usually frustrated with administrative barriers, delay in preparing
conditions for investment and local corruption. On the other hand, the competence of
local governments in creating a friendly business environment is decisive to
attracting investment capital. Former prime minister of Singapore, Mr. Lee Kuan
Yew, once noted that countries in industrialization process typically focus too much
on hardware (infrastructure) but neglect the most important factor as creating a
friendly business environment for investors.
 Another important point in the industrialization of suburban areas is that attracting
investment capital is just a vehicle. The main point is how local provinces can
benefit from this process to initiate the change of economic and labour structure. In
some places in Thailand, an oasis model has been developed, i.e., the situation in
which industrial zones cannot be connected to promote regional economy, transform
economic structure, workers and engineers working in industrial zones come from
other places instead of local people. This situation shall not induce economic
structure transformation and local industrialization and urbanization will be
impractical.

48.
36
 In the process of suburban industrialization and urbanization, investment flows
usually result in the change from agricultural into industrial production and the
urbanization will break former structure of the locality and arise new challenges for
the environment and social problems... Therefore, local governments should not only
pay attention to arising economic issues but also social problems and develop
orientations to deal with new challenges.
 Regarding investment strategy, it is only necessary to avoid focusing only on capital
construction but also on social security and human factor. Human resource training
and vocational training are meaningful and decisive for local provinces to actually
benefit from suburban industrialization, shift their economic structure and urbanize
locality.
 In the process of suburban industrialization, avoiding suburban competition and
space in the urban center due to the shift of industry to suburban areas; Urban
cities need to be applied active development strategies to promote inner change in
material sense to develop to a higher level3
. So, the cities need to select alternative
development trends, establish high-quality workforce, business classes and services,
and develop science and technology....
2.3. Review of Related Studies
2.3.1. FOREIGNER
2.3.1. 1. Silicon Valley - U.S.
See figure 2.1. Silicon Valley - U.S

49.
37
Silicon Valley Scientific Research
It can be said that the concept of Business Park was originated in 1950s when Stanford
University (California, U.S.) introduced an idea to implement a coordination program for
scholarship, research and employment with certain regional companies. With this
program, Stanford University provided part of its land (about 3,240 ha) to hi-tech
companies that were able to support Stanford’s activities. In 1951, first contracts were
signed and Silicon Valley, world first Business was founded. In the end of 1960s, Trinity
College (Cambridge University, U.K.) decided to copy the approach of Stanford in a non-
production land to the Northeast of Cambridge City and set up Cambridge Scientific
Research Center, U.K. first Business Park.

50.
38
2.3.1. 2. Kalundborg Industrial Park (Denmark)
Kalundborg Industrial Park is considered as the first typical example of the first
ecological industrial park in the world. The model of this Park is an important basis to
develop the theoretical framework of EIZs in the world. On the basis of two coal thermal
power plants, Asnos (1,500 mW) and Statoil oil filtration plant (1.8 million tons/year), in
1972, Plastic Gyproc Production Plant (14 million m2/year) started developing an energy
and material exchange system among companies (industrial cohabitant) by using butane
gas from Statoil.

51.
39
During 15 years (1982-1997), energy consumption in this Park was reduced by 19,000
tons oil, 30,000 tons coal, 600,000 m3 water and 130,000 ton carbon dioxide emission.
According to statistics in 2001, companies in this Park gained 160 million USD profit on
a total investment of 75 million USD. Currently, this Park has many enterprises using
materials and products of each other, such as: fuel, sludge, dust and clinker, steam, hot
water, sulfuric solution, water after biological treatment and gypsum.
2.3.1.3 . Riverside Industrial Park (Vermont, U.S.)
Riverside Industrial Park with an area of 40ha (not including farm), is a mixed, multi-
functional agricultural EIZ consisting of green zone, recreation and public areas and peat
lands. This Park applies the principles of an EIZ to develop an enclosed sustainable
development model focusing on agriculture, green house and clean energy.

52.
40
Basic components of Riverside Industrial Park is McNeil wood-based thermal power
plant, Living Machine waste water treatment plan, compost plan and farms, fishery
product growing farms and green houses. These components function in an input-output-
closed cycle incorporating a waste wood collection station, cement manufacturing
factory, cream plan and local farms.
To achieve a strong growth of socio-economy and protect regional environment,
developers in this Park have suggested 6 fundamental principles as follows:
- Encouraging the development of an autonomy, self-supplied self-served economy that
takes full advantage of local resources.

53.
41
- Balancing equilibrium and impact on growth.
- Promoting and using finance effectively.
- Protecting and preserving natural resources and environment of the locality,
especially its traditional agriculture.
- Always maintaining close cooperation with local community.
- Cooperating with nonprofit organizations to promote essential goods and services.
Riverside Industrial Park is a typical example of economic development on basis of
ecological industry to achieve the benefits to environment and community.

54.
42
2.3.2. THE DEVELOPMENT OF URBAN INDUSTRIAL ZONES IN VIETNAM.
2.3.2. 1. Phu My Hung urban industrial zone
Location
This Zone locates across Nguyen Van Linh main street, a core route through district 7,
part of Saigon South Urban Zone to the South of Ho Chi Minh City and connecting to the
center via a bridge system. This Zone has a system of many natural channels.
See Figure 2.2. Phu my hung downtown
The Zone locates near Saigon River Port with existing ports such as Saigon Port or Ben
Nghe Port, and a 20,000 DWT vessel.

55.
43
Scale
Phu My Hung Corporation is permitted to exploit and develop a 5 urban zone cluster
(750 ha) creating a international center of commerce and finance in South-East Asia:
Zone A - New urban center (409 ha): this is the center of the urban zone where
investors and traders are attracted to.
Zone B - University Village (95 ha): this is the first simulative application sector in
Vietnam taking the idea and experience from a community surrounding Silicon Valley in
California, U.S., and the Scientific Industrial Park in Taiwan. University Village is a
complex of functions including housing, commercial, local services and public
works(18ha). A branch of RMIT International University, Australia is also located here.
Zone C - Hi-Tech Center (46 ha): locates at the intersection of Nguyen Van Linh and
Provincial Road No.7 where hi-tech industrial development factories in Vietnam are
located, surrounded by a multi-function complex facilitating conditions for those who
work and live there.
Zone D - Goods Distribution Center No. II (85 ha): locates at the three-way
intersection between Ben Luc and Can Giuoc River, facilitating conditions for ports,
berths and serving as the terminal for distributing and circulating goods, storing food and
relevant industrial products, consisting of a complex of commercial and housing
functions with an area of 5ha for public structure.
Zone E - Goods Distribution Center No. I (115 ha): locates at the intersection of
National Road 1A and Nguyen Van Linh Boulevard, consisting of 5 sectors: International
Trade Sector, Nguyen Van Linh Boulevard Trade Sector, Industrial Warehousing Sector,
Port and Goods Transit Storage, and Housing Complex. Zone E locates at a favorable site

56.
44
for circulation of goods from road and sea ways. Reserved area for public structure is 14
ha.
Investor
Phu My Hung Urban Zone Project is owned by Phu My Hung Joint Venture Corporation
with the certificate issued in May 1993. The Corporation had 70% foreign capital and
30% domestic capital. The investors are Central Trading Development (CTD)
Group, PanVIET of Taiwan, and TTC (VN), who is also the investor of Saigon South
Urban Zone Project. Mr. Ly Dai Minh, Deputy General Director in charge of Phu My
Hung Corporation said that the Company always highly acknowledged the importance of
management, design, planning, construction technology, selection of construction
materials... and developed the highest standards for construction and design of U.S.,
Japan and China, etc. to apply in preparing building standards and codes of Phu My
Hung.
Foundation and Development
The Project started with Central Trading Development Group and PANVIET carried
out a number of strategic projects in a non-agricultural swamp area in 2003.
(1) Developed 300 ha of Tan Thuan Export Processing Zone, the first one in Vietnam,
attracting over 450 major factories from Taiwan and in the world.
(2) Hiep Phuoc Port
(3) Hiep Phuoc Industrial Zone
(4) Hiep Phuoc Power Plant
With the success of Tan Thuan Export Processing Zone, CTD continued investing in
the construction of Nguyen Van Linh Boulevard of 17.8km long and 120m wide,

57.
45
crossing the swamp, and modern civil power, water supply and environment treatment
system, 150 ha of infrastructure for public works to hand over to Ho Chi Minh City
People's Committee for developing public services and starting Saigon South Urban Zone
Project with an area of 2,600 ha. Therefrom, Phu My Hung Joint Venture Corporation
started developing Phu My Hung Urban Area with 5 zones A, B, C, D, and E on an area
of 750 ha.
Business Operation
Over 15 years of development in business, Phu My Hung Corporation still aims at most
of the laborers in Tan Thuan - Hiep Phuoc export processing zone with nearly 50,000
laborers while housing market for low and medium-income workers has been taken care
of.
Next, the Corporation aims at medium and high-class market with more modern and
highly commercial structures. Successful investors in PMH have helped popularized the
reputation of this urban zone on international scale. It has attracted more and more
secondary investors and residents to come to start their careers. Until now, this Zone has
attracted more than 200,000 people to live and work there and 100,000 workers working
in Tan Thuan - Hiep Phuoc export processing zone , creating a high demand for house in
this Zone.

58.
46
Let's have a brief of typical structures of the Center Zone
See Figure 2.3. International Finance and Trade Center
International Finance and Trade Center: a complex of high-rise office multi-function
building for commercial, finance, fair, exhibition, international conference,
entertainment, tourism, service, administration, stock exchange, hotel and other social
utilities, where locates offices of many multi-national corporations such as Unilever,
Toyota, BMW, Porsche,... Major structures are Saigon Center of Conference and
Exhibition, Saigon Paragon Office and Commercial Building, etc. In addition, there is
Star Hill, a high-end housing and apartment project.
Semicircular Lake Zone: with an area of over 10 ha and 100 million USD of investment
capital for this project, simulating the idea of Singapore Bay. Semicircular Lake Zone
Project is designed by 25 architects from 13 countries and 6 detailed implementing firms.
Architect Axel Korn, director of KORN Architects - a direct designer of this Zone - said
that it would play the role of a social heart.
Canal Zone: to be simulated after The Canal Zone in the United States, which is a
housing and commercial zone with service businesses, product display stores, restaurants
and shops... on the ground and 2nd floors. Canal Zone spreads across Ton Dat Tien
Boulevard with green parks and across a canal. The Zone is constructed with many

59.
47
ecological structure apartments and housing zones Garden Plaza I, Garden Plaza II,
Garden Court I and Garden Court II, 70% of area of which is used for open space and
green trees.
Medical Care Zone: consisting medical facilities, care facilities, services, shops, sport
and recreation centers... satisfying diversified needs of the people, from medical service,
health care service to such services as FV Hospital (220 beds), Tam Duc Heart Hospital
(180 beds), Viet-America Hospital, etc. and other health care services. Medical Care
Zone also includes sport and recreation facilities such as golf yard, 9-hole golf yard,
sand-bottom swimming pool, and 4 tennis courts.
Canh Doi Zone: a residential zone early provided with facilities such as schools,
supermarkets (Coopmart, Citimart), a series of convenient stores, and services along main
traffic route of Nguyen Duc Canh Boulevard.
Nam Khang Residential Blocks in Nam Vien Zone. The geography of Nam Vien Zone
is like an oasis surrounded by river with low building coverage ratio and high green
coverage of 10,000 - 20,000 m2. This is a residential area with the largest green coverage
in the center of Phu My Hung Urban Zone, locating adjacent to International Finance and
Trade Center and Semicircular Lake on the route of Nguyen Luong Bang Boulevard
(48m wide). Nam Vien Zone is also the place for many foreign schools such as Japanese,
Korean or Taiwanese schools.
Culture and Entertainment Zone: locating to the West gate of Phu My Hung Urban
Center, a centralized residential area, with the corridor of cultural trees for relaxing
purpose to the North and river landscape to the East. Main structures here are street
houses and apartments, Hung Thai villas, Hung Gia street houses, Hung Phuoc, Sky

60.
48
Garden Apartment Building, walking street, shopping mall on 2nd floor of the residential
area, Wonderland Park and a riverside park.
Midtown Zone: a central business zone along Nguyen Luong Bang Boulevard, locating
between Nam Vien Zone and International Finance and Trade Center. There are many
high-class villas and apartments here.
Phu My Hung is also assessed as a standard model of urban area in Vietnam.

61.
49
2.3.2.2. My Phuoc Urban Industrial Zone, Binh Duong Province
Overview
My Phuoc Urban Industrial Zone was founded on June 12, 2002 with a total area of
6,200ha. Investor: Investment and Industrial Development Corporation (Becamex)
Locating to the North of Binh Duong Province, one of Southern Key Economic provinces
and the place of man industrial zones in the country, on the main traffic route (National
Road 13) of Ben Cat District, Binh Duong Province. My Phuoc Urban Industrial Zone is
a large-scale zone (Of which, 3,000 ha is used for industrial and urban zones and 3,200
ha is used for service facilities) to be carried out through 5 phases: Phase 1: 400 ha, 100%
leased; Phase 2: 800 ha, 100% leased; Phase 3: 2200 ha, 70 % leased; Phase 4: 800 ha,
leasing starts since 2009; Phase 5: 2000 ha, 50 % leased
See Figure 2.4. My Phuoc Industrial Urban Zone

62.
50
Site: My Phuoc Urban Industrial Zone locates at a favorable site: 40km away from Ho
Chi Minh City; 42km away from Tan Son Nhat International Airport; 32km away from
Bien Hoa City, Dong Nai Province; 42km away from Saigon Port; 30km away from
Dong Nai Port; 30km away from Binh Duong Port; 41km away from Saigon Railway
Station; Tan Van - My Phuoc Speed Way going through the Zone.
Development of industrial zones
My Phuoc Urban Industrial Zone has standard infrastructure, reasonable rental price, and
flexible payment method as well as supporting services and available warehouses and
factories for lease. Flexible leasing method: an investor may hire land, available factory
or apply the method of building and leasing; Free consulting and supporting services for
the investors to perform procedures for starting their projects; Frequently hold social and
community activities; Good investment attracting policies; By the end of July 2009, My
Phuoc Urban Industrial Zone had proven the success of a development model combining
industry - urban - service with 360 investors from 24 countries and a total investment of
2.8 billion USD.
With more than 10 years of experience operating in the field of industrial zone
infrastructure investment, Becamex has developed My Phuoc Urban Industrial Zone with
purposes to create new resources to promote general and comprehensive socio-economic
growth in Northern area of Binh Duong Province. With above purposes, My Phuoc
Industrial - Urban - Service Complex has received much attention and support from local
government and provincial agencies.

63.
51
Traffic : National Road 13 connects key traffic routes of the whole country. A bus route
from Ho Chi Minh City to the town center directly connects to the Industrial Zone that
facilitates favorable conditions for laborers.
Utilities :
- My Phuoc Market : consists of 04 sectors locating in important and strategic sites of
My Phuoc 1, 2, and 3 with a total area of 9,000 m2. Each sector is divided into
smaller sub-sectors for various business and services such as self-selecting market,
supermarket, food drink area, inter-provincial station, and other services.
- There is a theater for entertainment and culture enjoying needs of the laborers and
local people: The open-door theater is set up on an area of 6,400 m2 and has 3,000
seats available.
- 8-storey My Phuoc Trade Center locates at the center of the Industrial Zone serving
experts and expatriates living in the area and adjacent provinces.
- A supermarket at My Phuoc II Industrial Zone: BD Mart Supermarket is operated on
an area of 3,000 m2 selling 50,000 various products from 600 suppliers that have
been satisfying the needs of laborers and local people.
2.4. Conceptual framework
In order to develop such an industrial city from industrial zones in Vietnam, it is
necessary to develop a model to reach the objectives of a sustainable city. Factors such as
health center, education, recreation centers, industrial services such as logistics, customs,
sales centers, promotion centers, retail and wholesale shops.... In addition, it is important

64.
52
to establish housing area for this development. To do that, considering following
variables:
(1) change of enterprises in industrial zones.
(2) Financial power and experience of the owner, commitments of the owner in
constructing infrastructure, utilities and initial provision of services, contribution of
the owner in initiating the project and engaging other developers.
(3) Intervention of the state in the establishment and development of industrial zones
such as planning, local meetings regarding the issue of sustainable development, tax
policies, land use...
(4) Policies on environmental protection and attitude of local people.
(5) Developing transport and space system toward linking HCMC to Mekong river delta
provinces, constructing road, river and mass transport systems to connect Ho Chi
Minh City to its belt road.
(6) human resource development.
(7) open investment promotion.
Besides, enterprises in industrial zones need to change in respect of their products,
markets, technologies, labor, and coordinating ability, open development to cooperate
with adjacent areas to create the foundation for development; About development
orientation of sustainable industrial zones, combining social and environmental
conditions as pre-conditions for developing an industrial city.
Summary of Conceptual framework:
See Figure 2.5 : Conceptual Framework from Industrial Park to Industrial Perfect City

65.
53

66.
54
CHAPTER 3
METHDOS OF RESEARCH AND TECHNIQUES OF STUDY
3.1 Research Methods
According to Denzin and Lincoln (2005), humanism has a strong relationship with
constructivism. The constructivism approach believes that ‘mathematical entities exist only
if they can be constructed’ (Flew, 1984, p.74) or, in other words, that truth is not totally
attained from a mathematical procedure or statistical analysis. The humanist approach
therefore does not rely upon quantitative research methods, but subscribes to a qualitative
approach.
Similar to the differences between qualitative and quantitative research approaches
emphasised by Creswell (2005) suggests that there are also distinctions in research
design between the two approaches. Some literature divides social scientists into two
dichotomous categories, qualitative and quantitative positivists. Moran-Ellis et al.,
(2006) argue that this partitioning of qualitative and quantitative methods is
oversimplified. The fact is, the meta-theoretical assumptions that underpin different
paradigms are multiple and complex. Social science therefore embraces many ‘paradigms’
that vary along multiple dimensions, including epistemology, ontology and conceptions of
the nature of human action. Thus, a simple dichotomy between qualitative and
quantitative is unhelpful. Rather, the use of mixed methods within single empirical
investigations is possible. Mixed-methods studies can include ‘standard’ positivistic,
quantitative and interpretive qualitative components, or a mixture of different types of
qualitative data. This may include a mixture of positivistic, interpretive, phenomenological

67.
55
and visual data. The use of eclectic approach, applying more than one method, especially in
social research, is acceptable (Greene et al., 2001; Moran-Ellis et al., 2006).
3.2 Research Design
 Empirical method: The Dissertation has adopted research outcomes and
secondary data from scientific works in relation to industrial cluster and business
park, supporting industrial zone and ecological industrial park.
 Statistical, comparative, analysis, evaluation and summary method: The
Dissertation has analyzed period-based time-series data on industrial zones and
cities in Vietnam in a comparison to the situations in other countries. Statistical
functions have been used: frequency, percentage, growth rate, average value,
forecast value.
 Surveying and expert method: The Research used primary data from a survey
specifically designed for the Dissertation by conducting a questionnaire survey
and interviewing. Local policy makers, state administrators, investors in industrial
zones, and manufacturing enterprises are main subjects of the survey, of which,
infrastructure firms and suppliers are emphasized on. The author also conducted
interviews with businessmen, Vietnamese and Japanese experts, infrastructure-
related policy makers and construction official in Vietnam.
3.3 Population and Samples
A total of 222 questionnaires were sent to enterprises in Tan Duc and adjacent industrial
zones, of which 110 were returned and 2 were invalid, the ratio of 58%.

68.
56
The researcher focuses on interviewing enterprises in the industrial zones of Tan Duc,
Hai Son and Hanh Phuc. In addition, FDI enterprises are also interviewed to consider the
potential of promoting auxiliary industrial zones in this area. I have arranged to meet with
industrial policy makers, leaders of governmental and non-governmental organizations
and experts in relevant fields.
Vietnamese enterprises account for about 60% and foreign enterprises account for about
40% of total enterprises. In particular, 8 Japanese, 5 Korean, 6 Taiwanese companies and
many form China and other countries have been directly interviewed.
Besides, the interviews with service companies and banks in the area are also conducted
and the sections below shall describe a number of main results of evaluation.
3.4 Research Instruments
The research instruments adopted in this research are: Case Study, interview and review
of documentation for analysis.
3.5 Data Collection
Husserl suggests that the humanist interpretive approach is the most suitable for the
present study. Locke et al.(1998) note that on-site observation, examination of documents
and interviews are the main method of data collection in qualitative research. A detailed
explanation of each strategy will be discussed below.
a. Observation
Observation has been characterised as “the fundamental base of all research

69.
57
methods” in the social and behavioural sciences and as “the mainstay of the ethnographic
enterprise”. It entails a systematic noting and recording of events, behaviours and
artefacts regarding objects or environments studied (Marshall and Rossman, 1995). An
observer needs to be attentive to all details and take nothing for granted in the area of
study. Human activities, physical setting, body language and other gestures that lend
meaning to the speech of interview are examples of things to look at (Angrosino, 2005).
Angrosino (2005) suggests that observation can be undertaken in three ways -
participant observation, reactive observation and unobtrusive observation. In any form of
observation, a three-step procedure needs to be observed in order to increase the level of
specificity of an observation.
b. Review of Documents
Review of documents, which is an unobtrusive method of observation, can help
the researcher understand the values and beliefs of the observed participants (Marshall
and Rossman, 1995) and is an important part of collecting ‘background material’ for
‘real’ analysis (McCulloch, 2004). There are a very wide range of possible documentary
sources, including minutes of meetings, logs, announcements, formal policy statements,
archival records, books, newspapers, periodicals, works of fiction, official data,
proceedings, reports, diaries, letters, autobiographies, training handbooks, organisations’
plans and strategies, and organizational charts (Marshall and Rossman, 1995; Claver et
al., 1999; McCulloch, 2004). Documents from virtual source, such as the internet or
electronic mail, are a new focus and additional to the paper-based documents (Marshall
and Rossman, 1995).
McCulloch (2004) suggests that each type of document constitutes a substantial and
significant set of information in its own right. However, there are connections

70.
58
between them. It is also important to note that different types of research may need to
concentrate on different types of documents. The quality of these documents is assessed
based on their authenticity, reliability and contents.
c. In-Depth Interview
Marshall and Rossman (1995) suggest that in-depth interviewing, or
“conversation with a purpose”, is applied extensively by qualitative researchers. An
example of an in-depth interview is an informal conversation meant to uncover a
participant’s understanding and perspectives. An in-depth interview is not very
structured, enabling the participant to respond according to his own perspective. Various
techniques may be used: an informal conversational interview, a general interview or a
standardised open-ended interview. In addition to generic in-depth interviewing, there are
several more specialised forms of interviews, phenomenological interviews, including
ethnographic interviews, elite interviews and focus group interviewing. Characteristics of
each type are as follows:
Table 3.1 : Characteristics of Ethnographic, Phenomenological, Élite and Focus Group Interviewing
Type of Interview Characteristics
Ethnographic
Normally used by ethnographer to gather cultural data in research
based on the discipline of cognitive anthropology
Phenomenological
Applied in a phenomenological enquiry to study experiences and
the way in which people apply them to develop worldviews.
Élite Interview individuals that are considered influential, prominent,
and well-informed in an organization or community. Interviewees
are selected for interviews on the basis of their expertise in
areas relevant to the research.
Focus Group
Assemble participants into a group or groups of individuals
(normally between 4 and 12 people) who are unfamiliar with one
another. Participants are selected because they share certain
characteristics that are relevant to the study. Each group is

71.
59
normally interviewed repeatedly, perhaps with different
individuals composing the group. The advantage of this method is
that the method is socially oriented and the resulting discussion is
natural and mimics real life.
3.6 Data Analysis and Statistical Treatment
Data analysis, which is messy, ambiguous and requires creativity, is the process of
bringing order, structure and meaning to the mass of collected data (Marshall and
Rossman, 1995). Table 14 indicates that qualitative research conclusions are not derived from
testing hypotheses. As Schwartzman and Strauss (1995) put it:
“Qualitative data are exceedingly complex, and not readily convertible into standard
measurable units of objects seen and heard” (quoted in Marshall and Rossman, 1995,
p.112).
Based on Marshall and Rossman (1995) and Creswell (2005), procedures to follow in
qualitative data analysis are:
a. Organizing the Data
At the early stage of analysis, qualitative data, normally collected in large amounts
(Marshall and Rossman, 1995; Creswell, 2005) and in various forms, including interview
tapes, field notes, documents, photographs and other visual materials, need to be compiled
into file folders, cards or computer files (Marshall and Rossman, 1995; Creswell, 2005).
Audiotape recordings and field notes need to be transcribed into text data. Creswell
(2005) suggests that during the transcription process, the researcher, besides transcribing
interviewees’ responses, need also to include the interviewer’s comments and observations.
Interviewees’ responses can also be codified.
b. Generating Categories, Themes and Patterns

72.
60
This procedure evaluates the data for their informational adequacy, credibility, usefulness
and centrality. Here, Marshall and Rossman (1995) recommend:
(a) Assessing the data and referencing them to the conceptual framework;
(b) Noting regularities in the ‘setting or people chosen for study’ and identifying the
salient, grounded categories of meaning held by participants in that setting;
(c) Categorising responses into either ‘indigenous typology’ or ‘analyst
constructed typologies’. Indigenous typologies are those created and expressed by
participants and are generated through analysis of the local use of knowledge. Analyst-
constructed typologies are those created by the researcher as reflecting certain
categories.
Creswell (2005) noted that the following categories of themes might emerge:
(a) ordinary themes;
(b) unexpected themes;
(c) hard-to-classify themes; and
(d) major and minor themes.
c. Layering and Interrelating Themes
Creswell (2005) suggests that the categorisation process, as above, should be
followed by a procedure he calls “layering and interrelating themes”. This
involves:
(a) layering themes: Built on the idea of major and minor themes, in this
process, themes are stratified into layers, beginning from basic elements and moving onto
more sophisticated ones.
(b) interrelating themes: The researcher connects the themes to display a
chronology or sequence of events, such as generated in the researcher’s theoretical
and conceptual model.
d. Representing Findings
Data and findings, are presented, typically in the form of:
(a) a comparison table;
(b) a hierarchical tree diagram representing the interconnection between themes;
(c) a chain diagram demonstrating the relationship between themes;

73.
61
(d) a map depicting the physical layout of the setting; and
(e) a demographic table describing personal or demographic information or sites visited
in the research.
e. Interpreting
Qualitative research is interpretive research (Creswell, 2005). According to Guba (1985),
“interpretation involves making sense of the data or the lesson learned” (quoted in
Creswell, 2005). Accordingly, the next phase is to interpret the findings, drawing a
more general conclusion about the studied phenomenon.
Alternatively, interpretation can be accomplished by comparing the present data with past
studies. Therefore, the headings ‘conclusions’, ‘interpretation’ and ‘implications’ are
commonly found in qualitative research reports. Interpretation of the findings may include:
(a) a review of the major findings and how the research questions were answered;
(b) consistency of the present data with past studies in order to assess whether the findings
support or contradict;
(c) personal reflections about the research findings. Qualitative research believes
that personal views can never be separated from interpretation.
Besides, the researcher may have been to the field and visited the subject studied
personally and spent a great deal of time with the respondents. The researcher is therefore in a
good position to reflect and remark on the larger meaning of the data;

74.
62
CHAPTER 4
METHODS OF RESEARCHA ND TECHNIQUES OF STUDY
4.1 CURRENT SITUATION OF SUSTAINABLE DEVELOPMENT IN TAN DUC
URBAN INDUSTRIAL ZONE, LONG AN PROVINCE
In Chapter 2, theoretical basis in relation to research definitions and research model has
been presented as well as research hypotheses. In this Chapter, the author shall present
current situation of sustainable development in Tan Duc Urban Industrial Zone in aspects
of regime, society and environment.
4.1.1 Overview of economic development in Vietnam
See Figure 4.1. CPI Viet nam
According to forecast by economic experts, world economy will face with much more
challenges and difficulties and even fall into a recession again in the future. In that
context, Vietnamese Government continues maintaining the objectives of curbing
inflation and growing at an appropriate rate in accordance with domestic and world
conditions. Thereby, it is possible to become active toward maintaining a firm growth in
2014.

75.
63
In Socio-economic development consulting for 5 year period 2011-2015 conference
held by the Ministry of Planning Investment in Hanoi, MOPI gave two plans for the
economy. Specifically, on basis of the forecast that world economic situation is still
complex while growth rates will be low in 2011 and 2012 and in subsequent years, more
difficulties and challenges may remain.
Plan 1 : economic growth rate in the next 5 years is forecast to remain at 6.5%. GDP
scale based on actual price through 2015 will be 4,500 thousand billion dong, equivalent
to 180 billion USD; GDP per capita will be about 39 million Vietnam dong, equivalent to
1,965 USD. Total goods export value increased by 12%/year and total export value in
2015 will be about 12% of total import export value.
Also according to this plan, indebtedness balance by the end of 2015 will be no more
than 65% of GDP, government debt shall not exceed 55% of GDP, and national debt
shall not exceed 50% of GDP. These figures as in 2010 were 57.3%, 45.7%, and 42.2%
of GDP, respectively. Ratio of social investment for 5 years will be about 33.5%.
Plan 2, if world economy is improved, GDP for the next 5 years will increase by 7,5 %
and value of GDP will be 4,600 thousand billion dong, or equivalent to 184 billion USD.
Economic structure: agriculture-forestry-fishery (18%), industry (42%), and service