Environment Protection and Regulations in Industrial Cluster (IC) Development - A Case in Hanoi Vietnam

Abstract

Production and business establishments in industrial clusters (CCNs) have opportunities and conditions to increase productivity and reduce costs through taking advantage of geographical proximity. At present, some CCNs and the majority of CCNs are established and developed on the basis of value chain of production and product supply. Therefore, CCN has promoted cooperation, association and increased competitiveness of production and business establishments in the cluster. According to Michael Porter, CCNs have the potential to affect competition in three ways: i) By increasing the efficiency of firms in the Cluster; ii) By regulating innovation in the region; iii) By encouraging businesses in the area. Therefore, CCN is the nucleus that promotes regional and local socio-economic development