Regional development perspectives in Vietnam: insights from a 2002 provincial social accounting matrix (SAM)

Abstract

Growing regional disparities in Vietnam have encouraged plans to extend the national Comprehensive Poverty Reduction and Growth Strategies (CPRGS) to the provincial level. The northern mountainous province of Son La has distinctive development perspectives. It was selected as the site of Vietnam?s planned biggest dam and hydroelectric power plant. Large-scale infrastructure investments are expected to contribute to economic growth and poverty reduction in the region. The impacts of these investments on the regional economy can be assessed with a multiplier model based on a regional social accounting matrix (SAM). In this paper, we present a 2002 SAM for Son La. To shed light on the socioeconomic situation, we review insights from this detailed database. A SAM-based multiplier model is then put forward to examine linkages within the provincial economy and to present first results of demand-side effects of infrastructure investment in the local construction sector.