All nations on the way of economic development have to go through tim of industrialization in which the basic approach for any different economies is forming geographical concentration of industries called industrial zones. Vietnam has been carrying out the flourishing stage of industrial zones. | Cluster thoery: an approach to innovate the industrial zone model 54 CLUSTER THOERY: AN APPROACH TO INNOVATE THE INDUSTRIAL ZONE MODEL MA. Vu Thi Cam Thanh University of Social Sciences and Humanities Abstract: All nations on the way of economic development have to go through tim of industrialization in which the basic approach for any different economies is forming geographical concentration of industries called industrial zones. Vietnam has been carrying out the flourishing stage of industrial zones. However, the establishment and development of industrial zones surely remain some weaknesses, for example, the industrial zone model which has expressed the lack of systematically connectivity, the low economic effectiveness, and difficulties in protecting the surrounding environment. Whether can a new model based on Cluster Theory be a solution to the issue of reforming industrial zones in Vietnam? Keywords: Industrial zone model; Industrial clusters. 1. Introduction Article 2 of the Decree No. 29/2008/ND-CP of the Government issuing the Regulation on industrial zones, export processing zones and economic zones defines “An industrial zone is a zone where industrial zone enterprises specialize in the production of industrial goods and in the provision of services for industrial production, having delimited geography boundaries, established following conditions, sequence and procedure for industrial zones ruled in this Decree”. An industrial zone demonstrates the geographical concentration of enterprises in areas where the Government reserved to support the development of certain industries in order to ensure the harmony and relative balance among objectives of economy, society, and environment. Industrial zones spring up by virtue of the increase of agglomeration economies, favourable local infrastructure, available exchange system, suitable investment of governments, and reduce in communication and transaction cost. Due to the fact that the model of industrial .
