The taxonomy of development in Vietnam during 2012-2015

Abstract

The research classifies different developmental levels in Vietnam provinces. The secondary data was collected in the form of panel data from 63 Vietnamese provinces during 2012-2015. Factor analysis and cluster analysis were used to verify the conceptual framework of development and build multidimensional taxonomy of development, respectively. The study found four developmental clusters with their main characteristics. Cluster 1 focused on the national earnings and had an enormous impact on national economic growth. The emergence of good governance to improve institutional environments appeared in Cluster 2 with new industrialisation. Developmental transition was recorded in Vietnam, including the Ha Noi capital and remarkable development in Thai Nguyen province. The main contribution of this study is the classification of different developmental levels in Vietnam. These different developmental levels would be used for further analysis in causal research to find significant causal impacts. New avenue for further research should focus on sustainability, foreign investments and innovation capacities.