Street Vendors and the Informal Economy in an Emerging Tourism Destination: Vung Tau, Vietnam

Abstract The role of the informal economy remains a contested one in the literature on economic development and other academic areas. Some follow de Soto (2000), in turn supporting the optimistic process of economic development outlined by Todaro (1969), in arguing that informal workers are actual or potential entrepreneurs capable of supporting themselves and their families and learning skills that will enable them to graduate to a regular job in the formal economy. Others, following Davis (2007), see informal sector workers as being subject to the forces of global capitalism with which they cannot contend and who must survive increasingly difficult housing, living and environmental conditions which threaten their security. Previous research (Maneepong and Walsh, 2009) of street vendors in Bangkok indicated some support for both points of view in that a new generation of street vendors has emerged post the 1997 economic crisis which is commercially sophisticated and motivated by medium and long-term career goals rather than day-to-day subsistence. This paper reports on research among a group of 40 street vendors in Vung Tau in Vietnam. Vung Tau is a peninsula on the southern coast of Vietnam which is characterised by an economy divided between traditional economic activities and the emergence of an important offshore oil industry and its attendant ancillary services. At the same time, a tourism industry is also emerging for both domestic and international travelers based on beach activities together with the normal karaoke culture to be found in many parts of East Asia. In this environment, street vendors have different market segments in which they might work. To what extent are vendors able to upgrade their products and business models to take advantage of the new demands available and what difficulties do they face in their work? These issues are discussed and recommendations drawn both for micro-entrepreneurs and for urban development.

This is the abstract of the paper that I delivered at the 3rd ICTL earlier this week. The full paper should be available at the conference website (www.ictlconference.com).