We examined the effects of Vietnamese enterprise zones, under the initiative of the central government, on local businesses across different types of ownership of zone infrastructure developers (ZIDs). We constructed a panel of communes during 2000–2007 using data on zone-based firms, local firms, and zones. We found that zones led to an increased number of firms and increased employment in the communes hosting the zones, even after excluding zone-based firms. Our findings also suggest that private partnerships in ZIDs worked best in attracting firms to the zones. The spatial spillover effects of the zones occurred up to a distance of 14 km.
- enterprise zone
- local business
- private sector
ASJC Scopus subject areas
- Environmental Science (miscellaneous)