Firm Performance and Industrial Accumula-tion: The Role of Industrial Parks

Tham Do Thi Hong; Quoc Viet Nguyen; Vu Huy Le; Ha Linh Bui; Nguyen Thi Thoan

Authors

Tham Do Thi Hong Vietnam Institute for Economics and Policy Research (VEPR), VNU-UEB, Vietnam https://orcid.org/0009-0003-5170-2440
Quoc Viet Nguyen Faculty of Economics, Academy of Policy and Development, Vietnam https://orcid.org/0000-0002-3608-0108
Vu Huy Le Development and Policies Research Center, Vietnam https://orcid.org/0009-0000-4333-9838
Ha Linh Bui Vietnam Institute for Economics and Policy Research (VEPR), VNU-UEB, Vietnam https://orcid.org/0009-0002-3273-7093
Nguyen Thi Thoan Vietnam Institute for Economics and Policy Research (VEPR), VNU-UEB, Vietnam https://orcid.org/0009-0009-4258-1038

Keywords:

Firm performance, TFP, Industrial Accumulation, Industrial Parks

Abstract

This research examines the impact of industrial agglomeration on the productivity of SMEs in Vietnam, using FE regression for panel data and the PSM method. The study utilizes data from the General Statistics Office of Vietnam (2016–2020) and the OECD’s TiVA database. The findings highlight the positive effects of industrial parks on firm performance, particularly for medium-sized enterprises, export-oriented firms, and those integrated into global value chains. SMEs with strong international linkages benefit from improved access to modern production technologies, with FDI capital firms exhibiting the highest productivity gains. Furthermore, the performance of industrial parks exhibits significant geographical variation, with the Southern region demonstrating superior efficiency due to the concentration of large industrial clusters and advanced facilities. High-tech zones have emerged as key drivers of regional productivity, fostering industrialization and technological innovation. Policymakers should prioritize the expansion and modernization of industrial zones, promote trade liberalization, and support SMEs through targeted incentives while strengthening FDI linkages to drive sustainable industrial development.

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