Environmental and resource degradation associated with small-scale enterprise clusters in the Red River Delta of Northern Vietnam

Abstract

The paper reports on an empirical study of the environmental and resource degradation observed in small-scale handicraft clusters in the Red River Delta of northern Vietnam. Most entrepreneurs in these clusters face important challenges, including depletion of natural resources, linked to acute shortages of capital and land. Such issues are identified as the main cause of overcrowding, poor working conditions and extreme environmental degradation. The study also highlights some industrial ecology practices at the enterprise level, and assesses the role played by the government in providing incentives for enterprises to invest in new technology and pollution control. Drawing from the analysis of a questionnaire survey of 56 handicraft enterprises, the study identifies the major constraints they encounter in adopting new environmentally clean technologies and engaging in environmental management. Shortage of capital and lack of knowledge about the benefits of new technologies were viewed as the most important barriers, followed by shortage of skilled workers, poor market conditions and scarcity of land appropriate for industrial production.