Factors Affecting State Management of Local Craft Village Development in Vietnam

Abstract

The study focuses on clarifying the role and factors affecting the effectiveness of state management in the development of traditional craft villages in Vietnam. Based on the inheritance of theoretical frameworks on local economic development (LED), resource theory (RBV), value chain and community governance, the study builds a theoretical model consisting of six main groups of factors: financial resources, production capacity management, human resources - craft inheritance, market and digital transformation, State management, and environmental - social factors. Analyzing data from 250 production facilities in typical traditional craft villages through the SEM model shows that endogenous factors such as management capacity, finance and human resources have significant impacts, while factors related to institutions and the environment have not fully promoted their supporting role. The study provides policy implications to improve the effectiveness of state management, especially in supporting access to capital, training human resources, promoting digital transformation and improving local institutions.