The determinants of creative goods exports: evidence from Vietnam

Using the analysis framework of gravity model, the purpose of this study is to investigate determinants of creative goods exports from Vietnam—a developing country to the world. Over the years, Vietnam has rapidly enlarged creative goods exports to the globe, with a high concentration on developed economies and design sector. We found Vietnam’s creative goods exports, at aggregate level, are principally positively affected by economic scale and market development of both Vietnam and trading partners as well as trading partners’ higher education. There is the heterogeneity among the parameter estimations in different types of creative sector and different sub-sectors of design industry. We found Vietnam is subject to export-agglomeration economies in the creative sector but its impacts are not the same among the all creative sectors intra and inter. Vietnam’s creative exports, at both aggregate and sectoral levels, are negatively impacted by cultural distance, except performing arts. In future, there is a significant room for enhancing Vietnam’s creative goods exports to external countries. Nevertheless, it would need Vietnam to implement appropriate policies with the focus on increasing access to foreign markets; fostering the establishment of industrial zones; improving higher educational institutions; and promoting linkages between local suppliers and foreign enterprises.