This study investigates the role, characteristics of firm locating in IP and using econometrics model to investigate the impact of firm locating within IPs on its labor productivity. The results prove that IP locating firms account a small percentage in total number of manufacturing firms in Vietnam but play considerable role for manufacturing sector in general and for manufacturing foreign investment in special. Locating in IP has quite significant positive effect on firm's labor productivity. | Advances in Social Sciences Research Journal – , Publication Date: Dec. 25, 2017 DoI:. Anh, P. Q. (2017). Whether locating within industrial parks raises productivity of manufacturing firms? Evidences from Vietnam. Advances in Social Sciences Research Journal, (424) 120-125. Whether locating within industrial parks raises productivity of manufacturing firms? Evidences from Vietnam Pham Quynh Anh VNU University of Economics and Business, Ha noi,Vietnam ABSTRACT During twenty years, 1992 -2010, over 200 industrial parks (IP) have been established in Vietnam. IP probably results in economy of agglomeration, reduction in average total cost and increase for labor productivity. In contrast IP may induce diseconomy of agglomeration and opposite results. This study investigates the role, characteristics of firm locating in IP and using econometrics model to investigate the impact of firm locating within IPs on its labor productivity. The results prove that IP locating firms account a small percentage in total number of manufacturing firms in Vietnam but play considerable role for manufacturing sector in general and for manufacturing foreign investment in special. Locating in IP has quite significant positive effect on firm's labor productivity. Keyword: Industrial park, labor productivity, IP locating firm, foreign investment. INTRODUCTION Since the beginning of Doi moi stage in 1986 Vietnamese government has designed several long term plan and a number polices to accelerate economic growth in general and industrialization in particular. Following the experiences of Newly Industrialized Economies first generation such as South Korean, Singapore and the NICs second generation like Malaysia, government has decided establishment of industrial zones of whom the first was signed in 1991. In addition, Law of Foreign Investment enacted in 1994 gave tax preferential treatment to firm operating in .
