Developing industrial clusters experiences of selected asean countries and china and policy recommendations for the laos

---***---PHD THESIS DEVELOPING INDUSTRIAL CLUSTERS EXPERIENCES OF SELECTED ASEAN COUNTRIES AND CHINA AND POLICY RECOMMENDATIONS FOR THE LAOS Major: Business Administration SONEPASEUTH DA

-*** -PHD THESIS

DEVELOPING INDUSTRIAL CLUSTERS EXPERIENCES OF SELECTED ASEAN COUNTRIES AND CHINA AND POLICY RECOMMENDATIONS FOR THE LAOS

Major: Business Administration

SONEPASEUTH DALAVONG

HA NOI - 2025

-*** -PHD THESIS

DEVELOPING INDUSTRIAL CLUSTERS EXPERIENCES OF SELECTED ASEAN COUNTRIES AND CHINA AND POLICY RECOMMENDATIONS FOR THE LAOS

Major: Business Administration Code: 9340101

NCS SONEPASEUTH DALAVONG

Supervisors: 1 Associate Professor, Dr Cao Dinh Kien

2 Dr Nguyen Thi Hoa Hong

HA NOI - 2025

I, Sonepaseuth Dalavong, hereby declare that this doctoral dissertationentitled "Developing Industrial Clusters: Experiences of Selected ASEAN Countriesand China and Policy Recommendations for the Laos" represents my own originalwork and has been conducted independently under the supervision of AssociateProfessor Dr Cao Dinh Kien and Dr Nguyen Thi Hoa Hong at Foreign TradeUniversity

I solemnly affirm that this research constitutes original scholarly inquiry andthat the methodology, analysis, findings, and conclusions presented herein are theproduct of my independent intellectual endeavour The theoretical frameworks,empirical investigations, and policy recommendations contained within thisdissertation have been developed through rigorous academic research and represent

a novel contribution to the field of industrial cluster development in emergingeconomies

I declare that this dissertation, in its entirety or in part, has not beenpreviously submitted for examination or degree conferment at this institution or anyother academic institution, domestically or internationally Furthermore, I confirmthat no portion of this work has been published or submitted for publication withoutexplicit acknowledgement of its origin as part of this doctoral research

I acknowledge that all sources of information, whether directly quoted,paraphrased, or referenced, have been appropriately cited and attributed according

to established academic conventions All statistical data, theoretical concepts,empirical findings, and scholarly arguments derived from existing literature havebeen meticulously documented and credited to their respective authors and sources

I understand that any violation of these declarations constitutes academicmisconduct and may result in the cancellation of my degree candidature I acceptfull responsibility for the accuracy and integrity of all statements made herein andconfirm my adherence to the highest standards of academic ethics and scholarlyconduct throughout the research process

Ha Noi, Date … Month Year 2025

PHD student

CHAPTER 3 RESEARCH METHODOLOGY 47

3.1 Research process 47

3.2 Research approach 48

3.2.1 Qualitative research 48

3.2.2 Quantitative research 50

3.3 Hypotheses development and research model 51

3.4 Sampling method and data collection 61

3.4.1 Survey questionnaire 61

3.4.2 In-depth interviews 65

3.5 Data analysis methods 65

3.5.1 Cronbach’s alpha test 65

3.5.2 Exploratory factor analysis 66

3.5.3 Pearson correlation 66

3.5.4 Model fit test via Confirmatory factor analysis 67

3.5.5 Multivariate Regression 67

3.6 Variables measurement scale 68

CHAPTER 4 FINDINGS AND DISCUSSIONS 70

4.1 Overview of Laos’ industrial cluster 70

4.1.1 The history and development of Laos’ industrial clusters 70

4.1.2 The Government’s strategy to develop Laos’ industrial clusters 71

4.1.3 Some typical industrial clusters in Laos 80

4.1.4 The remaining problems 89

4.2 Experiences of developing industrial clusters in the world 89

4.2.1 Singapore 90

4.2.2 Malaysia 94

4.2.3 Thailand 99

4.2.4 Vietnam 102

4.2.5 China 105

4.3 Quantitative analysis of determinants of Developing Industrial Clusters in Laos PDR 109

4.3.1 Respondents’ profile 109

TALBE OF CONTENTS

DECLARATION i

ACKNOWLEDGMENTS ii

TALBE OF CONTENTS iii

LIST OF ABBREVIATION vi

LIST OF FIGURES vii

LIST OF TABLES viii

CHAPTER 1 INTRODUCTION 1

1.1 Research rationale 1

1.2 Research objectives and questions 4

1.2.1 Research objectives 4

1.2.2 Research questions 5

1.3 Research scope 5

1.4 Research methods 5

1.5 Contribution of the research 6

1.6 Structure of the thesis 7

CHAPTER 2 LITERATURE REVIEW 8

2.1 Overview of industrial clusters 8

2.1.1 Concept of industrial cluster 8

2.1.2 Characteristics of industrial clusters 9

2.1.3 The role of industrial clusters 10

2.1.4 Classification of industrial clusters 12

2.2 Overview of developing industrial clusters 17

2.2.1 The concept of developing industrial clusters 17

2.2.2 Assess the possibility of developing industrial clusters 19

2.2.3 Performance between cluster firms and non-cluster firms 22

2.2.4 Factors affecting developing industrial clusters 23

2.3 Literature review on developing industrial clusters 37

2.3.1 Relevant theories 37

2.3.2 Empirical studies on developing industrial clusters 40

First of all, I would like to respectfully thank the teachers and scientists ofForeign Trade University, the staffs the Post-Graduate Department, and especiallythe teachers in the Business Management Department, Faculty of BusinessAdministration, for creating favorable conditions and wholeheartedly helping methroughout the study and research process

In particular, I would like to express my sincere and deep gratitude to myinstructors Associate Professor, Dr Cao Dinh Kien and Dr Nguyen Thi Hoa Hongwho have always enthusiastically guided me to complete my thesis These wereextremely valuable suggestions not only during the process of carrying out thethesis but also as a basis for me in the future research and teaching process

Finally, I would like to thank my family, colleagues, and friends, who havealways been by my side to encourage me and have been a great source ofencouragement to help me in the process of researching and completing my thesis

Ha Noi, Date … Month Year 2025

PHD student

LIST OF TABLES

Table 3.1 Variables’ measurement scales 57

Table 4.1 Demographic of respondents 109

Table 4.2 Descriptive statistic of Developing Industrial Clusters 110

Table 4.3 Descriptive statistic of Government Policies and Supports 110

Table 4.4 Descriptive statistic of Institutional Quality 111

Table 4.5 Descriptive statistic of Infrastructure Quality 111

Table 4.6 Descriptive statistic of Firm Strategy and Rivalry 112

Table 4.7 Descriptive statistic of Related and Supporting Industry 112

Table 4.8 Descriptive statistic of Demand Conditions 113

Table 4.9 Descriptive statistic of Entrepreneurship and Innovation 114

Table 4.10 Descriptive statistic of Factor (input) Conditions 114

Table 4.11 Cronbach’s alpha result 115

Table 4.12 KMO and Bartlett’s test of dependent variables 117

Table 4.13 Rotated component matrix of dependent variables 117

Table 4.14 KMO and Bartlett’s test of independent variables 118

Table 4.15 Rotated component matrix of independent variables 119

Table 4.16 Pearson Correlation results 124

Table 4.17 Model summary b 128

Table 4.18 ANOVA a 128

Table 4.19 Coefficients a 129

CHAPTER 3 RESEARCH METHODOLOGY 47

3.1 Research process 47

3.2 Research approach 48

3.2.1 Qualitative research 48

3.2.2 Quantitative research 50

3.3 Hypotheses development and research model 51

3.4 Sampling method and data collection 61

3.4.1 Survey questionnaire 61

3.4.2 In-depth interviews 65

3.5 Data analysis methods 65

3.5.1 Cronbach’s alpha test 65

3.5.2 Exploratory factor analysis 66

3.5.3 Pearson correlation 66

3.5.4 Model fit test via Confirmatory factor analysis 67

3.5.5 Multivariate Regression 67

3.6 Variables measurement scale 68

CHAPTER 4 FINDINGS AND DISCUSSIONS 70

4.1 Overview of Laos’ industrial cluster 70

4.1.1 The history and development of Laos’ industrial clusters 70

4.1.2 The Government’s strategy to develop Laos’ industrial clusters 71

4.1.3 Some typical industrial clusters in Laos 80

4.1.4 The remaining problems 89

4.2 Experiences of developing industrial clusters in the world 89

4.2.1 Singapore 90

4.2.2 Malaysia 94

4.2.3 Thailand 99

4.2.4 Vietnam 102

4.2.5 China 105

4.3 Quantitative analysis of determinants of Developing Industrial Clusters in Laos PDR 109

4.3.1 Respondents’ profile 109

4.3.2 Descriptive evaluation of variables 109

4.3.3 Scale reliability test – Cronbach’s alpha 115

4.3.4 Exploratory factor analysis 117

4.3.5 Confirmatory Factor Analysis 121

4.3.6 Pearson correlation analysis 123

4.3.7 Regression model tests for assumption of standardized residuals 125

4.3.8 Multivariate regression analysis 127

4.4 Qualitative interview results 135

CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS 140

5.1 Conclusion 140

5.2 Orientation for industrial cluster development in Laos 140

5.3 Solutions for developing industrial clusters in Laos 142

5.3.1 Solutions for Laos government 142

5.3.2 Solutions for Laos local authorities 144

5.3.3 Solutions for Laos companies 145

5.4 Recommendations for industrial clusters in Laos 147

5.5 Limitations and suggestions for future research 148

REFERENCES 150

APPENDICES 179

First of all, I would like to respectfully thank the teachers and scientists ofForeign Trade University, the staffs the Post-Graduate Department, and especiallythe teachers in the Business Management Department, Faculty of BusinessAdministration, for creating favorable conditions and wholeheartedly helping methroughout the study and research process

In particular, I would like to express my sincere and deep gratitude to myinstructors Associate Professor, Dr Cao Dinh Kien and Dr Nguyen Thi Hoa Hongwho have always enthusiastically guided me to complete my thesis These wereextremely valuable suggestions not only during the process of carrying out thethesis but also as a basis for me in the future research and teaching process

Finally, I would like to thank my family, colleagues, and friends, who havealways been by my side to encourage me and have been a great source ofencouragement to help me in the process of researching and completing my thesis

Ha Noi, Date … Month Year 2025

PHD student

4.3.2 Descriptive evaluation of variables 109

4.3.3 Scale reliability test – Cronbach’s alpha 115

4.3.4 Exploratory factor analysis 117

4.3.5 Confirmatory Factor Analysis 121

4.3.6 Pearson correlation analysis 123

4.3.7 Regression model tests for assumption of standardized residuals 125

4.3.8 Multivariate regression analysis 127

4.4 Qualitative interview results 135

CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS 140

5.1 Conclusion 140

5.2 Orientation for industrial cluster development in Laos 140

5.3 Solutions for developing industrial clusters in Laos 142

5.3.1 Solutions for Laos government 142

5.3.2 Solutions for Laos local authorities 144

5.3.3 Solutions for Laos companies 145

5.4 Recommendations for industrial clusters in Laos 147

5.5 Limitations and suggestions for future research 148

REFERENCES 150

APPENDICES 179

First of all, I would like to respectfully thank the teachers and scientists ofForeign Trade University, the staffs the Post-Graduate Department, and especiallythe teachers in the Business Management Department, Faculty of BusinessAdministration, for creating favorable conditions and wholeheartedly helping methroughout the study and research process

In particular, I would like to express my sincere and deep gratitude to myinstructors Associate Professor, Dr Cao Dinh Kien and Dr Nguyen Thi Hoa Hongwho have always enthusiastically guided me to complete my thesis These wereextremely valuable suggestions not only during the process of carrying out thethesis but also as a basis for me in the future research and teaching process

Finally, I would like to thank my family, colleagues, and friends, who havealways been by my side to encourage me and have been a great source ofencouragement to help me in the process of researching and completing my thesis

Ha Noi, Date … Month Year 2025

PHD student

4.3.2 Descriptive evaluation of variables 109

4.3.3 Scale reliability test – Cronbach’s alpha 115

4.3.4 Exploratory factor analysis 117

4.3.5 Confirmatory Factor Analysis 121

4.3.6 Pearson correlation analysis 123

4.3.7 Regression model tests for assumption of standardized residuals 125

4.3.8 Multivariate regression analysis 127

4.4 Qualitative interview results 135

CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS 140

5.1 Conclusion 140

5.2 Orientation for industrial cluster development in Laos 140

5.3 Solutions for developing industrial clusters in Laos 142

5.3.1 Solutions for Laos government 142

5.3.2 Solutions for Laos local authorities 144

5.3.3 Solutions for Laos companies 145

5.4 Recommendations for industrial clusters in Laos 147

5.5 Limitations and suggestions for future research 148

REFERENCES 150

APPENDICES 179

4.3.2 Descriptive evaluation of variables 109

4.3.3 Scale reliability test – Cronbach’s alpha 115

4.3.4 Exploratory factor analysis 117

4.3.5 Confirmatory Factor Analysis 121

4.3.6 Pearson correlation analysis 123

4.3.7 Regression model tests for assumption of standardized residuals 125

4.3.8 Multivariate regression analysis 127

4.4 Qualitative interview results 135

CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS 140

5.1 Conclusion 140

5.2 Orientation for industrial cluster development in Laos 140

5.3 Solutions for developing industrial clusters in Laos 142

5.3.1 Solutions for Laos government 142

5.3.2 Solutions for Laos local authorities 144

5.3.3 Solutions for Laos companies 145

5.4 Recommendations for industrial clusters in Laos 147

5.5 Limitations and suggestions for future research 148

REFERENCES 150

APPENDICES 179

CHAPTER 3 RESEARCH METHODOLOGY 47

3.1 Research process 47

3.2 Research approach 48

3.2.1 Qualitative research 48

3.2.2 Quantitative research 50

3.3 Hypotheses development and research model 51

3.4 Sampling method and data collection 61

3.4.1 Survey questionnaire 61

3.4.2 In-depth interviews 65

3.5 Data analysis methods 65

3.5.1 Cronbach’s alpha test 65

3.5.2 Exploratory factor analysis 66

3.5.3 Pearson correlation 66

3.5.4 Model fit test via Confirmatory factor analysis 67

3.5.5 Multivariate Regression 67

3.6 Variables measurement scale 68

CHAPTER 4 FINDINGS AND DISCUSSIONS 70

4.1 Overview of Laos’ industrial cluster 70

4.1.1 The history and development of Laos’ industrial clusters 70

4.1.2 The Government’s strategy to develop Laos’ industrial clusters 71

4.1.3 Some typical industrial clusters in Laos 80

4.1.4 The remaining problems 89

4.2 Experiences of developing industrial clusters in the world 89

4.2.1 Singapore 90

4.2.2 Malaysia 94

4.2.3 Thailand 99

4.2.4 Vietnam 102

4.2.5 China 105

4.3 Quantitative analysis of determinants of Developing Industrial Clusters in Laos PDR 109

4.3.1 Respondents’ profile 109

LIST OF ABBREVIATION

AHP Analytical Hierarchy Process

ASEAN Association of the Southeast Asian Nations EWEC East-West Economic Corridor

FDI Foreign direct investment

GDP Gross Domestic Products

LDC Least Developed Country

RBV Resource Based View

R&D Research and Development

SEZs Special Economic Zones

WTO World commercial Organization

CHAPTER 3 RESEARCH METHODOLOGY 47

3.1 Research process 47

3.2 Research approach 48

3.2.1 Qualitative research 48

3.2.2 Quantitative research 50

3.3 Hypotheses development and research model 51

3.4 Sampling method and data collection 61

3.4.1 Survey questionnaire 61

3.4.2 In-depth interviews 65

3.5 Data analysis methods 65

3.5.1 Cronbach’s alpha test 65

3.5.2 Exploratory factor analysis 66

3.5.3 Pearson correlation 66

3.5.4 Model fit test via Confirmatory factor analysis 67

3.5.5 Multivariate Regression 67

3.6 Variables measurement scale 68

CHAPTER 4 FINDINGS AND DISCUSSIONS 70

4.1 Overview of Laos’ industrial cluster 70

4.1.1 The history and development of Laos’ industrial clusters 70

4.1.2 The Government’s strategy to develop Laos’ industrial clusters 71

4.1.3 Some typical industrial clusters in Laos 80

4.1.4 The remaining problems 89

4.2 Experiences of developing industrial clusters in the world 89

4.2.1 Singapore 90

4.2.2 Malaysia 94

4.2.3 Thailand 99

4.2.4 Vietnam 102

4.2.5 China 105

4.3 Quantitative analysis of determinants of Developing Industrial Clusters in Laos PDR 109

4.3.1 Respondents’ profile 109

LIST OF FIGURES

Figure 2.1: Porter's determinants of industry cluster Development 29

Figure 2.2: A theoretical analytical technique based on systems and criteria 45

Figure 3.1 Research process 47

Figure 3.2: Proposed model 56

Figure 4.1 Results of Confirmatory Factors Analysis 122

Figure 4.2 Histogram of regression standardized residual 126

Figure 4.3 Normal P-P plot 127

TALBE OF CONTENTS

DECLARATION i

ACKNOWLEDGMENTS ii

TALBE OF CONTENTS iii

LIST OF ABBREVIATION vi

LIST OF FIGURES vii

LIST OF TABLES viii

CHAPTER 1 INTRODUCTION 1

1.1 Research rationale 1

1.2 Research objectives and questions 4

1.2.1 Research objectives 4

1.2.2 Research questions 5

1.3 Research scope 5

1.4 Research methods 5

1.5 Contribution of the research 6

1.6 Structure of the thesis 7

CHAPTER 2 LITERATURE REVIEW 8

2.1 Overview of industrial clusters 8

2.1.1 Concept of industrial cluster 8

2.1.2 Characteristics of industrial clusters 9

2.1.3 The role of industrial clusters 10

2.1.4 Classification of industrial clusters 12

2.2 Overview of developing industrial clusters 17

2.2.1 The concept of developing industrial clusters 17

2.2.2 Assess the possibility of developing industrial clusters 19

2.2.3 Performance between cluster firms and non-cluster firms 22

2.2.4 Factors affecting developing industrial clusters 23

2.3 Literature review on developing industrial clusters 37

2.3.1 Relevant theories 37

2.3.2 Empirical studies on developing industrial clusters 40

LIST OF FIGURES

Figure 2.1: Porter's determinants of industry cluster Development 29

Figure 2.2: A theoretical analytical technique based on systems and criteria 45

Figure 3.1 Research process 47

Figure 3.2: Proposed model 56

Figure 4.1 Results of Confirmatory Factors Analysis 122

Figure 4.2 Histogram of regression standardized residual 126

Figure 4.3 Normal P-P plot 127

LIST OF TABLES

Table 3.1 Variables’ measurement scales 57

Table 4.1 Demographic of respondents 109

Table 4.2 Descriptive statistic of Developing Industrial Clusters 110

Table 4.3 Descriptive statistic of Government Policies and Supports 110

Table 4.4 Descriptive statistic of Institutional Quality 111

Table 4.5 Descriptive statistic of Infrastructure Quality 111

Table 4.6 Descriptive statistic of Firm Strategy and Rivalry 112

Table 4.7 Descriptive statistic of Related and Supporting Industry 112

Table 4.8 Descriptive statistic of Demand Conditions 113

Table 4.9 Descriptive statistic of Entrepreneurship and Innovation 114

Table 4.10 Descriptive statistic of Factor (input) Conditions 114

Table 4.11 Cronbach’s alpha result 115

Table 4.12 KMO and Bartlett’s test of dependent variables 117

Table 4.13 Rotated component matrix of dependent variables 117

Table 4.14 KMO and Bartlett’s test of independent variables 118

Table 4.15 Rotated component matrix of independent variables 119

Table 4.16 Pearson Correlation results 124

Table 4.17 Model summary b 128

Table 4.18 ANOVA a 128

Table 4.19 Coefficients a 129

CHAPTER 3 RESEARCH METHODOLOGY 47

3.1 Research process 47

3.2 Research approach 48

3.2.1 Qualitative research 48

3.2.2 Quantitative research 50

3.3 Hypotheses development and research model 51

3.4 Sampling method and data collection 61

3.4.1 Survey questionnaire 61

3.4.2 In-depth interviews 65

3.5 Data analysis methods 65

3.5.1 Cronbach’s alpha test 65

3.5.2 Exploratory factor analysis 66

4.1 Overview of Laos’ industrial cluster 70

4.1.1 The history and development of Laos’ industrial clusters 70

4.1.2 The Government’s strategy to develop Laos’ industrial clusters 71

4.1.3 Some typical industrial clusters in Laos 80

4.1.4 The remaining problems 89

4.2 Experiences of developing industrial clusters in the world 89

4.2.1 Singapore 90

4.2.2 Malaysia 94

4.2.3 Thailand 99

4.2.4 Vietnam 102 4.2.5 China 105

4.3 Quantitative analysis of determinants of Developing Industrial Clusters in

Laos PDR 109

4.3.1 Respondents’ profile 109

TALBE OF CONTENTS

DECLARATION i ACKNOWLEDGMENTS ii TALBE OF CONTENTS iii LIST OF ABBREVIATION vi LIST OF FIGURES vii LIST OF TABLES viii CHAPTER 1 INTRODUCTION 1

1.5 Contribution of the research 6

1.6 Structure of the thesis 7 CHAPTER 2 LITERATURE REVIEW 8

2.1 Overview of industrial clusters 8

2.1.1 Concept of industrial cluster 8

2.1.2 Characteristics of industrial clusters 9

2.1.3 The role of industrial clusters 10

2.1.4 Classification of industrial clusters 12

2.2 Overview of developing industrial clusters 17

2.2.1 The concept of developing industrial clusters 17

2.2.2 Assess the possibility of developing industrial clusters 19

2.2.3 Performance between cluster firms and non-cluster firms 22

2.2.4 Factors affecting developing industrial clusters 23

2.3 Literature review on developing industrial clusters 37

2.3.1 Relevant theories 37

2.3.2 Empirical studies on developing industrial clusters 40

LIST OF ABBREVIATION

AHP Analytical Hierarchy Process

ASEAN Association of the Southeast Asian Nations EWEC East-West Economic Corridor

FDI Foreign direct investment

GDP Gross Domestic Products

LDC Least Developed Country

RBV Resource Based View

R&D Research and Development

SEZs Special Economic Zones

WTO World commercial Organization

LIST OF TABLES

Table 3.1 Variables’ measurement scales 57 Table 4.1 Demographic of respondents 109 Table 4.2 Descriptive statistic of Developing Industrial Clusters 110 Table 4.3 Descriptive statistic of Government Policies and Supports 110 Table 4.4 Descriptive statistic of Institutional Quality 111 Table 4.5 Descriptive statistic of Infrastructure Quality 111 Table 4.6 Descriptive statistic of Firm Strategy and Rivalry 112 Table 4.7 Descriptive statistic of Related and Supporting Industry 112 Table 4.8 Descriptive statistic of Demand Conditions 113 Table 4.9 Descriptive statistic of Entrepreneurship and Innovation 114 Table 4.10 Descriptive statistic of Factor (input) Conditions 114 Table 4.11 Cronbach’s alpha result 115 Table 4.12 KMO and Bartlett’s test of dependent variables 117 Table 4.13 Rotated component matrix of dependent variables 117 Table 4.14 KMO and Bartlett’s test of independent variables 118 Table 4.15 Rotated component matrix of independent variables 119 Table 4.16 Pearson Correlation results 124 Table 4.17 Model summary b 128 Table 4.18 ANOVA a 128 Table 4.19 Coefficients a 129

First of all, I would like to respectfully thank the teachers and scientists ofForeign Trade University, the staffs the Post-Graduate Department, and especiallythe teachers in the Business Management Department, Faculty of BusinessAdministration, for creating favorable conditions and wholeheartedly helping methroughout the study and research process

In particular, I would like to express my sincere and deep gratitude to myinstructors Associate Professor, Dr Cao Dinh Kien and Dr Nguyen Thi Hoa Hongwho have always enthusiastically guided me to complete my thesis These wereextremely valuable suggestions not only during the process of carrying out thethesis but also as a basis for me in the future research and teaching process

Finally, I would like to thank my family, colleagues, and friends, who havealways been by my side to encourage me and have been a great source ofencouragement to help me in the process of researching and completing my thesis

Ha Noi, Date … Month Year 2025

PHD student

LIST OF ABBREVIATION

AHP Analytical Hierarchy Process

ASEAN Association of the Southeast Asian Nations EWEC East-West Economic Corridor

FDI Foreign direct investment

GDP Gross Domestic Products

LDC Least Developed Country

RBV Resource Based View

R&D Research and Development

SEZs Special Economic Zones

WTO World commercial Organization

CHAPTER 3 RESEARCH METHODOLOGY 47

3.1 Research process 47

3.2 Research approach 48

3.2.1 Qualitative research 48

3.2.2 Quantitative research 50

3.3 Hypotheses development and research model 51

3.4 Sampling method and data collection 61

3.4.1 Survey questionnaire 61

3.4.2 In-depth interviews 65

3.5 Data analysis methods 65

3.5.1 Cronbach’s alpha test 65

3.5.2 Exploratory factor analysis 66

4.1 Overview of Laos’ industrial cluster 70

4.1.1 The history and development of Laos’ industrial clusters 70

4.1.2 The Government’s strategy to develop Laos’ industrial clusters 71

4.1.3 Some typical industrial clusters in Laos 80

4.1.4 The remaining problems 89

4.2 Experiences of developing industrial clusters in the world 89

4.2.1 Singapore 90

4.2.2 Malaysia 94

4.2.3 Thailand 99

4.2.4 Vietnam 102 4.2.5 China 105

4.3 Quantitative analysis of determinants of Developing Industrial Clusters in

Laos PDR 109

4.3.1 Respondents’ profile 109

LIST OF TABLES

Table 3.1 Variables’ measurement scales 57 Table 4.1 Demographic of respondents 109 Table 4.2 Descriptive statistic of Developing Industrial Clusters 110 Table 4.3 Descriptive statistic of Government Policies and Supports 110 Table 4.4 Descriptive statistic of Institutional Quality 111 Table 4.5 Descriptive statistic of Infrastructure Quality 111 Table 4.6 Descriptive statistic of Firm Strategy and Rivalry 112 Table 4.7 Descriptive statistic of Related and Supporting Industry 112 Table 4.8 Descriptive statistic of Demand Conditions 113 Table 4.9 Descriptive statistic of Entrepreneurship and Innovation 114 Table 4.10 Descriptive statistic of Factor (input) Conditions 114 Table 4.11 Cronbach’s alpha result 115 Table 4.12 KMO and Bartlett’s test of dependent variables 117 Table 4.13 Rotated component matrix of dependent variables 117 Table 4.14 KMO and Bartlett’s test of independent variables 118 Table 4.15 Rotated component matrix of independent variables 119 Table 4.16 Pearson Correlation results 124 Table 4.17 Model summary b 128 Table 4.18 ANOVA a 128 Table 4.19 Coefficients a 129

4.3.2 Descriptive evaluation of variables 109

4.3.3 Scale reliability test – Cronbach’s alpha 115

4.3.4 Exploratory factor analysis 117

4.3.5 Confirmatory Factor Analysis 121

4.3.6 Pearson correlation analysis 123

4.3.7 Regression model tests for assumption of standardized residuals 125

4.3.8 Multivariate regression analysis 127

4.4 Qualitative interview results 135 CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS 140

5.1 Conclusion 140

5.2 Orientation for industrial cluster development in Laos 140

5.3 Solutions for developing industrial clusters in Laos 142

5.3.1 Solutions for Laos government 142

5.3.2 Solutions for Laos local authorities 144

5.3.3 Solutions for Laos companies 145

5.4 Recommendations for industrial clusters in Laos 147

5.5 Limitations and suggestions for future research 148 REFERENCES 150 APPENDICES 179

TALBE OF CONTENTS

DECLARATION i ACKNOWLEDGMENTS ii TALBE OF CONTENTS iii LIST OF ABBREVIATION vi LIST OF FIGURES vii LIST OF TABLES viii CHAPTER 1 INTRODUCTION 1

1.5 Contribution of the research 6

1.6 Structure of the thesis 7 CHAPTER 2 LITERATURE REVIEW 8

2.1 Overview of industrial clusters 8

2.1.1 Concept of industrial cluster 8

2.1.2 Characteristics of industrial clusters 9

2.1.3 The role of industrial clusters 10

2.1.4 Classification of industrial clusters 12

2.2 Overview of developing industrial clusters 17

2.2.1 The concept of developing industrial clusters 17

2.2.2 Assess the possibility of developing industrial clusters 19

2.2.3 Performance between cluster firms and non-cluster firms 22

2.2.4 Factors affecting developing industrial clusters 23

2.3 Literature review on developing industrial clusters 37

2.3.1 Relevant theories 37

2.3.2 Empirical studies on developing industrial clusters 40

LIST OF FIGURES

Figure 2.1: Porter's determinants of industry cluster Development 29 Figure 2.2: A theoretical analytical technique based on systems and criteria 45 Figure 3.1 Research process 47 Figure 3.2: Proposed model 56 Figure 4.1 Results of Confirmatory Factors Analysis 122 Figure 4.2 Histogram of regression standardized residual 126 Figure 4.3 Normal P-P plot 127

LIST OF TABLES

Table 3.1 Variables’ measurement scales 57 Table 4.1 Demographic of respondents 109 Table 4.2 Descriptive statistic of Developing Industrial Clusters 110 Table 4.3 Descriptive statistic of Government Policies and Supports 110 Table 4.4 Descriptive statistic of Institutional Quality 111 Table 4.5 Descriptive statistic of Infrastructure Quality 111 Table 4.6 Descriptive statistic of Firm Strategy and Rivalry 112 Table 4.7 Descriptive statistic of Related and Supporting Industry 112 Table 4.8 Descriptive statistic of Demand Conditions 113 Table 4.9 Descriptive statistic of Entrepreneurship and Innovation 114 Table 4.10 Descriptive statistic of Factor (input) Conditions 114 Table 4.11 Cronbach’s alpha result 115 Table 4.12 KMO and Bartlett’s test of dependent variables 117 Table 4.13 Rotated component matrix of dependent variables 117 Table 4.14 KMO and Bartlett’s test of independent variables 118 Table 4.15 Rotated component matrix of independent variables 119 Table 4.16 Pearson Correlation results 124 Table 4.17 Model summary b 128 Table 4.18 ANOVA a 128 Table 4.19 Coefficients a 129

LIST OF FIGURES

Figure 2.1: Porter's determinants of industry cluster Development 29 Figure 2.2: A theoretical analytical technique based on systems and criteria 45 Figure 3.1 Research process 47 Figure 3.2: Proposed model 56 Figure 4.1 Results of Confirmatory Factors Analysis 122 Figure 4.2 Histogram of regression standardized residual 126 Figure 4.3 Normal P-P plot 127

4.3.2 Descriptive evaluation of variables 109

4.3.3 Scale reliability test – Cronbach’s alpha 115

4.3.4 Exploratory factor analysis 117

4.3.5 Confirmatory Factor Analysis 121

4.3.6 Pearson correlation analysis 123

4.3.7 Regression model tests for assumption of standardized residuals 125

4.3.8 Multivariate regression analysis 127

4.4 Qualitative interview results 135 CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS 140

5.1 Conclusion 140

5.2 Orientation for industrial cluster development in Laos 140

5.3 Solutions for developing industrial clusters in Laos 142

5.3.1 Solutions for Laos government 142

5.3.2 Solutions for Laos local authorities 144

5.3.3 Solutions for Laos companies 145

5.4 Recommendations for industrial clusters in Laos 147

5.5 Limitations and suggestions for future research 148 REFERENCES 150 APPENDICES 179

First of all, I would like to respectfully thank the teachers and scientists ofForeign Trade University, the staffs the Post-Graduate Department, and especiallythe teachers in the Business Management Department, Faculty of BusinessAdministration, for creating favorable conditions and wholeheartedly helping methroughout the study and research process

In particular, I would like to express my sincere and deep gratitude to myinstructors Associate Professor, Dr Cao Dinh Kien and Dr Nguyen Thi Hoa Hongwho have always enthusiastically guided me to complete my thesis These wereextremely valuable suggestions not only during the process of carrying out thethesis but also as a basis for me in the future research and teaching process

Finally, I would like to thank my family, colleagues, and friends, who havealways been by my side to encourage me and have been a great source ofencouragement to help me in the process of researching and completing my thesis

Ha Noi, Date … Month Year 2025

PHD student

LIST OF ABBREVIATION

AHP Analytical Hierarchy Process

ASEAN Association of the Southeast Asian Nations EWEC East-West Economic Corridor

FDI Foreign direct investment

GDP Gross Domestic Products

LDC Least Developed Country

RBV Resource Based View

R&D Research and Development

SEZs Special Economic Zones

WTO World commercial Organization