MAJOR ASSIGNEMENTS

SUBJECT
ECONOMIC GEOGRAPHY
(232-FDE3009-E-01)

Lecturer: Dr. Nguyen Dinh Tien

Student's name: Pham Hai Anh
Class: QH2021E- KTPT CLC3
Student number: 21051346

Ha Noi, 2024

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 INTRODUCTION
First of all, I would like to express my sincere gratitude to all the teachers at the
National Economics University - Hanoi University in general, and the Faculty of
Development Economics in particular. Especially, I would like to extend my heartfelt
thanks to Mr. Tien, the main instructor in the Economic Geography subject, for
answering my questions during difficult times and guiding me to complete the major
assignment to the best of my ability.
Due to my limited knowledge and time constraints, the major assignment inevitably
has shortcomings. I hope to receive your feedback to improve and make further
revisions. Above all, I wish you, Ms. Tien, good health, continued success, and to
maintain your enthusiasm in nurturing future generations.

STATEMENT OF ASSURANCE
I hereby declare that this major assignment is my own research work. The
information and data used in the assignment are from clear sources and are published
according to regulations. Thank you sincerely!

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 TABLE OF CONTENTS
INTRODUCTION.............................................................................................................2

STATEMENT OF ASSURANCE....................................................................................2

Question 1. What is economic geography and approach to economic geography?.....5

1.1. Economic Geography...........................................................................................5

1.2. Traditional Approaches.......................................................................................6

1.2.1. Regional Approach..........................................................................................6

1.2.2. Systematic or Commodity Approach...............................................................7

1.2.3. Activity Approach............................................................................................7

1.2.4. Principles Approach........................................................................................8

Question 2. How the role do natural resources, transportation networks, and

political institutions play in shaping economic geography?..........................................9

2.1. The Role of Natural Resources in shaping economic geography.....................9

2.1.1. Mineral Resources...........................................................................................9

2.1.2. Energy Resources............................................................................................9

2.1.3. Agricultural Resources..................................................................................10

2.1.4. Forestry and Marine Resources....................................................................10

2.1.5. Sustainability and Environmental Impact.....................................................11

2.2. The Role of Transportation Networks in shaping economic geography.......12

2.2.1. Trade and Commerce....................................................................................12

2.2.2. Locating Economic Regions..........................................................................12

2.2.3. Distribution of Resources and Raw Materials..............................................13

2.2.4. Development of Urban and Rural Areas.......................................................13

2.2.5. Promoting Tourism........................................................................................13

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 2.2.6. Enhancing Competitiveness and Economic Integration................................14

2.2.7. Influencing Investment Decisions..................................................................14

2.3. The Role of Political Institutions in shaping economic geography................14

Question 3. Compare and contrast three location of economic geography models?.16

3.1. Thunen's agricultural land use model..............................................................16

3.2. Weber's industrial position theory...................................................................18

3.3. Location model of Hotelling..............................................................................20

3.4. Compare three location of economic geography models................................23

3.4.1. Similarities.....................................................................................................23

3.4.2. Differences.....................................................................................................23

Question 4: What are some of the challenges and opportunities facing economic
geography in your local areas?.......................................................................................26

4.1. Challenges in Economic Geography of Vietnam.............................................26

4.1.1. Economic Transformation and Structural Changes......................................26

4.1.2. Regional Disparities......................................................................................26

4.1.3. Infrastructure Development...........................................................................27

4.1.4. Global Integration.........................................................................................27

4.2. Opportunitys in Economic Geography of Vietnam........................................27

4.2.1. Industrialization and Urbanization...............................................................27

4.2.2. Digital Economy and Innovation...................................................................28

4.2.3. Global Integration and Trade Agreements....................................................28

4.2.4. Sustainable Tourism and Cultural Heritage.................................................28

REFERENCES................................................................................................................30

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Question 1. What is economic geography and approach to economic geography?

1.1. Economic Geography

Geographers are of the opinion that Economic Geography is the study of the spatial
distribution of man's economic activities in relation to its environment be it physical
or non-physical. According to Dudley Stamp Economic Geography involves
consideration of the geographical and other factors which influence man's
productivity, but only in limited depths, so far as they are connected with the
production and trade.
According to Hartshorn and Alexander, Economic Geography is the study of the
spatial variation on the earth's surface of activities related to producing, exchange,
consuming goods and services. Whenever possible the goal is to develop
generalizations and theories to accountfor these spatial variations.
Economic geography examines the spatial distribution of economic activities and the
underlying factors that influence these patterns, including resources, transportation,
and market access, according to Richard Peet.
Surpassing all, Chisholmes says that Economic Geography is presumed to form
some reasonable estimate of the future course of commercial development, as
determined by geographical factors.

Picture 1: Relationships between Social, Environmental and Economic Sustainability

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 In general, Geographers are of different opinions as regarding the definition of the
subject. In fact, different authorities have defined Economic Geography in a variety of
ways, but their opinions converge at a common point of accord, where it means – the
study of the spatial distribution of man’s economic activities in relation to its
environment, be it physical or non-physical.

Picture 2: Economic, Transport and Commercial Geography

An understanding of the economic aspects of transportation relies on three
interdependent fields of geography, each based on a set of considerations:
 Economic geography is concerned with the location, distribution, and spatial
organization of economic activities, particularly regarding their supply and
demand requirements for energy, resources, goods, capital, and labor.
 Transport geography is concerned with the circulation of passengers and freight. It
seeks to understand their spatial organization by linking spatial constraints and
attributes with the origin, destination, extent, nature, and purpose of movements.
 Commercial geography investigates the spatial characteristics of trade and
transactions in terms of their nature, causes, and consequences.
1.2. Traditional Approaches
1.2.1. Regional Approach
This is one of the popular approaches of study of Economic Geography that attempts
to study the economy of the different geographical regions in a country, a continent or
the world as a whole. 'The term region', as Dickinson has put it, is undoubtedly one of
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the catch-words of our day among both popular and scientific writers. By region we
mean a suitable areal unit with some degree of homogeneity.
To geography, it is summum bonum. Taylor has rightly remarked "the concept of a
region as a well-integrated whole, characterized as regards its parts by first class
accessibility to and from the regional capital, and well balanced as regards its
resources, economic development, commerce, culture and occupations is one that so
far has not spread outside the ranks of the geographers and the planners.”
So, some authors prefer this regional approach in dealing with the contents of
Economic Geography. A region which is determined purely on the basis of any
geographical phenomenon has certainly some advantages over a political area which
is dynamic in nature.
It should be pointed out clearly that a econo-geographical region does not
necessarily coincide with the geo-political units. But, for the sake of convenience,
economic geographers have often considered political units for regional studies of
geo-economic conditions as well:
"The basic advantage of the regional approach is that it gives a better and
comprehensive knowledge of the different parts of a unit, their relationship to each
other and to the units as a whole. This is true whether the unit is a country, a continent
or the world."
1.2.2. Systematic or Commodity Approach
This approach provides a systematic description and interpretation of the
distributional pattern of individual resources or commodity (e.g. wheat, rice) or an
industry (e.g. cotton textile). As Wildfred Smith has observed: 'it analyses the whole
sequence of their development and catches them on their march to progression or
retrogression.' This systematic or commodity approach is very popular.
1.2.3. Activity Approach
This aims at dividing man's basic economic activities into suitable categories -
Primary, Secondary and Tertiary.

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 Primary activity includes activities like agriculture, forestry, fishing, hunting,
collecting and mining. These functions are, virtually, connected with Nature.
 Secondary activities include the activities which depend on the process of
converting the primary products into more usable ones.
 All the branches of manufacturing industries are to be considered as Secondary
Activity. Tertiary Activities are generated out of the necessity to set up a link
between primary and secondary activities, such as transportation, trade etc.
1.2.4. Principles Approach
In this approach, generalizations are made about man and his environment on the
basis of analysis of facts at a specific time point.
We often consider, as a general rule, 'Plains invite occupancy, mountains repel
settlement' or 'Deserts are regions of privacy.' Such generalizations are often harmful.
Yet, this approach has an importance of its own, it enhances the clarity of reasoning
and depth of analysis.
It is quite difficult to make any assortment from the four important methods
discussed and rely on any particular method to evaluate the economic condition of a
country. Regional approach depends heavily on the regional aspect of Economic
Geography; it neither relates regional diversity of development nor considers the
relative importance of different sectors or commodities.
The other approaches also have their own merits and demerits. Any single approach
is, therefore, incompetent to give a complete picture of the economy of a country or a
region.

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Question 2. How the role do natural resources, transportation networks, and
political institutions play in shaping economic geography?
The natural resources, transportation network, and political institutions play crucial
roles in shaping economic geography. Each of these factors contributes to the
distribution and organization of economic activities within a region or country. Let's
explore their individual impacts:
1.1. The Role of Natural Resources in shaping economic geography
1.1.1. Mineral Resources
Mineral resources such as iron ore, copper, gold, and coal have a significant impact
on the economic activities and geographical distribution of industries.
 Industrial Development: Regions rich in minerals often see the establishment of
mining industries, which can lead to the development of related sectors like
metallurgy, manufacturing, and construction. For example, the presence of iron
ore has historically led to the development of steel industries in places like the
Ruhr Valley in Germany and the Great Lakes region in the United States.
 Employment and Migration: Mining activities create job opportunities, attracting
labor from other regions. This migration can lead to the growth of towns and cities
around mining sites.
 Export Revenues: Countries with abundant mineral resources often become major
exporters, which can lead to substantial revenues and foreign exchange earnings.
This can improve national economic health and fund further infrastructure and
social development.
 Infrastructure Development: The need to transport minerals often leads to the
development of transportation infrastructure such as railways, ports, and roads.
These developments can also benefit other sectors of the economy.
1.1.2. Energy Resources
Energy resources, including fossil fuels (coal, oil, natural gas) and renewable sources
(hydroelectric, solar, wind), are crucial for powering economic activities.

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 Energy-Intensive Industries: Regions with abundant energy resources can support
energy-intensive industries such as petrochemicals, aluminum smelting, and heavy
manufacturing. For example, the oil-rich regions of the Middle East have
developed significant petrochemical industries.
 Economic Growth and Diversification: Access to cheap and reliable energy can
spur economic growth and enable diversification into various sectors such as
manufacturing and services.
 Geopolitical Importance: Control over significant energy resources can elevate the
geopolitical importance of a region, influencing global economic and political
dynamics. Countries like Saudi Arabia and Russia wield considerable influence
due to their energy exports.
1.1.3. Agricultural Resources
The presence of fertile land, favorable climate, and water resources are critical for
agricultural activities.
 Food Production and Security: Regions with rich agricultural resources can
produce surplus food, ensuring food security and supporting export markets. The
Great Plains in the United States and the Pampas in Argentina are examples of
agriculturally rich regions.
 Rural Development and Employment: Agriculture provides livelihoods for a
significant portion of the population in many regions, leading to rural
development. It also supports agro-based industries such as food processing and
textiles.
 Trade and Export: Agricultural exports can be a major source of revenue for
countries. For instance, countries like Brazil and the Netherlands have strong
agricultural export sectors, contributing significantly to their economies.
1.1.4. Forestry and Marine Resources
Forestry and marine resources also contribute to shaping economic geography in
specific regions.

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 Forestry: Regions with abundant forests can develop timber and paper industries.
Sustainable forestry practices can also support ecotourism and biodiversity
conservation.
 Marine Resources: Coastal regions with rich marine resources develop fishing
industries, aquaculture, and tourism. For example, the fishing industry is a
cornerstone of the economies in Norway and Japan.
1.1.5. Sustainability and Environmental Impact
The management of natural resources has long-term implications for economic
geography.
 Sustainable Development: Regions that manage their natural resources sustainably
can ensure long-term economic stability. Over-exploitation can lead to resource
depletion, environmental degradation, and economic decline.
 Climate Change Adaptation: The impact of climate change on natural resources
can alter economic geography. Regions may need to adapt by shifting agricultural
practices, developing new industries, or investing in renewable energy.
 Creating Competitive Advantages: Countries and regions with abundant natural
resources often have competitive advantages in resource-based industries. For
example, resource-rich nations can export their resources and related products,
generating income and employment and contributing to their strong economic
development.
For example, the Middle East's abundance of oil and natural gas has significantly
contributed to the region's economic prosperity, funding extensive infrastructure
development and enabling efforts to diversify economies beyond the energy sector.
However, this wealth also brings challenges, such as economic dependence on a
single sector and the political instability that often accompanies resource-rich regions.
In contrast, Australia, with its rich mineral deposits and agricultural resources, has
developed a diverse economy. This diversity is reflected in robust mining, agriculture,
and service sectors, which together provide a balanced and resilient economic
structure. Similarly, Chile's vast copper resources have positioned it as the world's

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largest copper producer. This abundance has profoundly influenced Chile's economic
structure and trade relationships, making copper a cornerstone of its economic activity
and international economic engagements.
Overall, natural resources are a pivotal factor in shaping the economic geography of
regions. They influence industrial development, employment patterns, trade, and
overall economic growth. Effective and sustainable management of these resources is
crucial for ensuring long-term economic prosperity and mitigating environmental
impacts. The interplay between natural resources and other factors like technology,
infrastructure, and political stability further defines the economic landscape of any
region.
1.2. The Role of Transportation Networks in shaping economic geography
The transportation network, encompassing roads, railways, ports, and airports, plays
a crucial role in facilitating the movement of goods, services, and people. The
accessibility and connectivity provided by transportation infrastructure significantly
influence economic geography.
1.2.1. Trade and Commerce
 Cost Efficiency: An efficient transportation network reduces costs associated with
transporting goods, including fuel costs, maintenance expenses, and labor costs.
Lower transportation costs make goods more affordable and accessible, thereby
boosting trade volumes.
 Market Access: Well-connected transportation networks improve market access
for businesses. They allow companies to reach customers in different regions
quickly and reliably, thereby expanding market opportunities and potential sales.
 Global Trade Integration: Ports and airports play a crucial role in facilitating
international trade. They serve as gateways for importing and exporting goods,
fostering economic ties with global markets and enhancing economic integration.
1.2.2. Locating Economic Regions
 Accessibility: Regions with well-developed transportation infrastructure are more
attractive to businesses seeking to establish operations. Access to efficient

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 transportation reduces logistics costs and ensures timely delivery of inputs and
finished products.
 Cluster Effect: Industries often cluster around transportation hubs due to their
strategic location. This clustering effect enhances economies of scale, encourages
innovation, and promotes collaboration among businesses within the same sector.
1.2.3. Distribution of Resources and Raw Materials
 Supply Chain Efficiency: Industries reliant on raw materials, such as mining and
agriculture, depend heavily on efficient transportation networks to transport inputs
to production sites and finished products to markets. This efficiency ensures
continuity in production processes and reduces inventory costs.
 Spatial Organization: Transportation networks influence the spatial organization of
industries. For instance, heavy industries may locate near ports for easier access to
imported raw materials and export markets.
1.2.4. Development of Urban and Rural Areas
 Urban Growth: Cities and urban centers often emerge and grow around
transportation nodes such as major highways, railways, and airports. These hubs
attract businesses, residents, and investments, driving economic growth and
development.
 Rural Connectivity: Improved transportation links rural areas to urban markets and
economic opportunities. This connectivity reduces rural isolation, stimulates
agricultural productivity, and supports rural economies through access to broader
markets.
1.2.5. Promoting Tourism
 Tourist Mobility: Efficient transportation networks enable tourists to travel easily
between attractions, enhancing their overall experience and encouraging longer
stays.
 Infrastructure Development: Tourism development often spurs investments in
transportation infrastructure, such as airports, roads, and public transit, to
accommodate growing visitor numbers.

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 1.2.6. Enhancing Competitiveness and Economic Integration
 Supply Chain Resilience: Reliable transportation networks reduce supply chain
risks and disruptions, enhancing business resilience and competitiveness in global
markets.
 Regional Connectivity: High-speed rail, expressways, and interconnected logistics
networks improve regional connectivity, enabling seamless movement of goods
and people across borders. This connectivity fosters economic cooperation and
integration within regions and across continents.
1.2.7. Influencing Investment Decisions
 Infrastructure Investment: Businesses consider the quality and reliability of
transportation infrastructure when deciding on investment locations. Well-
developed networks create favorable conditions for businesses by reducing
operational costs and improving market access.
 Economic Growth Potential: Regions with modern transportation systems signal
economic vitality and growth potential, attracting domestic and foreign
investments in various sectors, including manufacturing, logistics, and services.
1.3. The Role of Political Institutions in shaping economic geography
Political institutions, such as laws, regulations, management systems, and policies,
significantly shape economic geography. Government policies can directly impact the
location and development of industries through incentives, subsidies, taxes, and trade
regulations. Political stability and rule of law are critical for attracting domestic and
foreign investments, as they create a favorable business environment.
Additionally, political decisions related to land use, zoning, and urban planning
affect the physical layout of cities and regions. The government also plays a role in
providing public goods, such as education, healthcare, and infrastructure, contributing
to the overall economic development of a region. Political institutions, such as laws,
regulations, management systems, and policies, significantly shape economic
geography. Government policies can directly impact the location and development of
industries through incentives, subsidies, taxes, and trade regulations. Political stability

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 and rule of law are critical for attracting domestic and foreign investments, as they
create a favorable business environment.
Moreover, the ideas of Marxist theory have played a significant role in shaping
economic geography, emphasizing the analysis of working-class, race, and gender, as
well as the impact of capitalist development on cities and regions. Economic
geography's information on political economy acknowledges competition, struggle,
and the roles of institutions, including the state.
Overall, economic geography is valued for its ability to integrate knowledge from
variousdisciplines, question established norms, and provide a more comprehensive
understanding of economic phenomena.
In general, natural resources, transportation networks, and political institutions
interact and mutually influence each other to shape economic geography. The
combined impacts of these factors determine the spatial distribution of industries,
trade patterns, regional disparities, and the overall economic development within a
country or between regions. Understanding these dynamics is crucial for
policymakers and businesses to make informed decisions regarding resource
allocation, infrastructure development, and economic planning.

Question 3. Compare and contrast three location of economic geography models?

Comparing and contrasting economic geography models involves examining their
theoretical foundations, methodologies, and applications in understanding the spatial
organization of economic activities. Three prominent models in economic geography
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are the von Thünen model, Weber's industrial location theory, and Christaller's central
place theory. Each of these models offers distinct perspectives on how and why
economic activities are spatially distributed, taking into account factors such as
transportation costs, market access, and spatial interactions.
1.4. Thunen's agricultural land use model
The Von Thunen model, proposed by Johann Heinrich Von Thunen in 1826, is an
economic model that explains how different crops are distributed on agricultural land
based on their distance to the market. It is based on the assumption that the farmer
seeks to maximize profits by minimizing transportation costs. Important features of
this model include:
Circle of Center: The model assumes a circular landscape around a central market,
with different land uses arranged in circles.

Picture 3: Von Thunen Model of Land Use

There are generally four main concentric circles around a city, each representing a
different type of agricultural land use:
 The Innermost Ring: Intensive Farming: Closest to the central market town, the
innermost ring is devoted to intensive farming. Here, high-value crops and
perishable goods are cultivated due to their proximity to the market, reducing
transportation costs.

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 The Second Ring: Forest and Timber: Moving outward, the second ring often
consists of forests and woodlands. Timber, though heavy and bulky to transport, is
valuable enough to justify the cost.
 The Third Ring - Extensive Agriculture: The third ring comprises extensive
agriculture, characterized by less intensive farming practices. Livestock, which
can graze on large expanses of land, is commonly found here.
 The Outermost Ring – Wilderness: The outermost ring, located furthest from the
market town, is typically left in its natural state or used for activities with minimal
economic value due to high transportation costs.
While Von Thunen’s model was created in a time when horse-drawn carts were the
primary mode of transportation, its principles remain relevant today. The model has
been adapted and applied to various contexts, including:
 Urban Planning: City planners utilize Von Thunen’s insights to design efficient
transportation networks and allocate land for residential, commercial, and
industrial purposes, taking into account transportation costs and market access.
 Agricultural Economics: In the realm of agriculture, economists consider the
model when analyzing crop choices, land-use policies, and the allocation of
resources to optimize production and minimize costs.
 Environmental Conservation: Von Thunen’s model has also found a place in
environmental studies, helping experts understand the relationship between land
use, biodiversity, and conservation efforts.
 Overall, Von Thunen’s Model of Land Use Planning continues to shape our
understanding of rural development and resource allocation. Its insights have
transcended time, offering valuable lessons for modern urban and rural planning,
agricultural economics, and environmental conservation. By recognizing the
influence of transportation costs and market proximity, we can make informed
decisions that promote sustainable land use practices and economic vitality.
1.5. Weber's industrial position theory

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 Weber's Industrial Location Theory, also known as Weber's Least Cost Theory, is a
prominent economic theory developed by German economist Alfred Weber in 1909.
This theory seeks to explain the optimal location of industrial facilities based on
minimizing production costs, specifically focusing on three main factors:
transportation costs, labor costs, and agglomeration economies.

Webers Location Triangle

Important features of this model include:
a. Principle of Minimum Cost
 Weber's theory centers around the principle of minimizing production costs,
particularly transportation costs, as the primary factor influencing industrial
location decisions. The theory posits that industries will seek locations where the
combined costs of transporting raw materials to the factory and finished products
to the market are minimized.
b. Weight Gain versus Weight Loss Industries
 Weight-Gaining Industries: These industries produce goods that weigh more after
processing than the raw materials used, such as automobiles or beverages. To
minimize transportation costs, they tend to locate near the market center where the
products are consumed.
 Weight-Losing Industries: These industries produce goods that weigh less after
processing, such as steel production or mining. They locate near the sources of raw

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 materials (e.g., mines, quarries) to minimize transportation costs of bulky raw
materials.
c. Location Triangle
 Raw Material Point (R): Represents the location of raw material sources.
 Market Point (M): Represents the location of the market where the finished
products are consumed.
 Optimal Location (I): Represents the optimal location for the industrial facility,
where transportation costs of raw materials and finished products are minimized.
 The relative positioning of these points determines the optimal location for
industrial activities, balancing transportation costs with other factors like labor
availability and agglomeration economies.
d. Factors of Production
Apart from transportation costs, Weber's model considers several other factors of
production that influence industrial location decisions:
 Labor: Availability of skilled and unskilled labor, wage rates, and labor
productivity.
 Capital: Availability of financial resources for investment in infrastructure,
technology, and production facilities.
 Economies: Benefits gained from clustering industries together, including shared
infrastructure, access to a skilled labor pool, and knowledge spillovers.
 The following assumptions are made in the Weber model:
 Isotropic Surface: Weber assumes an isotropic (uniform and homogeneous)
surface across the geographic region under consideration. This implies uniformity
in terms of terrain, climate, and resources throughout the area. The isotropic
surface assumption simplifies the model by eliminating geographical variations
that could complicate the analysis of transportation costs and industrial location
decisions.
 Transport Cost Proportionality: transportation costs are directly proportional to
both the weight of the goods being transported and the distance over which they

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 are transported. This assumption implies that the cost of transporting raw materials
to the industrial site and finished products to the market increases linearly with the
weight of the goods and the distance traveled.
 Rational Economic Decision-Making: industrialists, buyers, and sellers are
rational economic agents who make decisions aimed at maximizing their own
economic benefits or minimizing costs. This assumption underpins the theory's
focus on cost minimization as the primary determinant of industrial location.
 Perfect Competition: The Weber model operates under the assumption of perfect
competition in the market. This means that there are many buyers and sellers in the
market, with no single entity having the power to influence prices or market
conditions. Perfect competition ensures that prices reflect true production costs,
including transportation costs, and that industrial location decisions are driven by
economic efficiency.
1.6. Location model of Hotelling
Hotelling's location model, also known as Hotelling's law or the principle of
minimum differentiation, is an economic theory that explains how competing
businesses tend to locate themselves in close proximity to each other to maximize
their market share. This model, developed by Harold Hotelling in 1929, primarily
applies to businesses in a linear market but has broader implications for understanding
spatial competition and differentiation strategies in various markets.

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 The model is effectively illustrated through the example of ice cream carts on a
beach, where firms' decisions on positioning directly impact their market share and
profitability.
Important features of this model include:
 Route City: simplifies a geographic market into a linear form where consumers
are uniformly distributed along a straight line, creating a uniform landscape that
emphasizes the impact of location on competition. In this model, consumers aim to
minimize travel costs, making proximity a critical factor in their purchasing
decisions, which in turn compels firms to position themselves optimally along the
route to capture the largest market share. This often results in firms clustering
towards the center of the route, where the highest consumer density is found,
leading to minimal differentiation as businesses locate close to each other to
maximize accessibility. This principle explains the clustering of similar
businesses, such as gas stations and fast-food restaurants, optimizing accessibility
and competitive advantage. By removing real-world geographical complexities,
the model underscores the strategic importance of location in urban planning and
business positioning, making it a valuable tool for understanding spatial
competition and market dynamics.
 Product differentiation: a strategy where companies distinguish their products
from competitors' offerings through unique features or attributes. This approach
helps them create perceived value, reduce direct price competition, and attract
customers based on specific needs and preferences. By focusing on innovation and
quality, firms can build strong brand identities and maintain competitive
advantages in the market.
 Lack of external factors: refers to the deliberate exclusion of influences such as
advertising, economies of scale, government regulations, and other external forces
in theoretical models or analyses. This simplification allows researchers to focus
exclusively on core variables like location, cost, or market dynamics to understand
their direct impact on outcomes. While useful for isolating specific relationships or

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 principles, real-world applications often necessitate consideration of these external
factors, which can significantly shape economic behaviors and outcomes in
practice. Thus, while theoretical models provide valuable insights, practical
analyses must often account for the complexities introduced by external influences
to enhance accuracy and relevance.
 Spatial balance: involves the strategic distribution of economic activities,
resources, and population across a geographic region to optimize development and
enhance societal welfare. It entails organizing infrastructure, residential areas,
businesses, and public services in a manner that minimizes regional disparities and
maximizes resource efficiency. In urban planning, achieving spatial equilibrium is
vital for establishing sustainable cities where residential, commercial, and
industrial sectors are harmoniously integrated with efficient transportation
networks. Economically, spatial equilibrium boosts productivity by strategically
positioning industries and services near markets and resources. Furthermore, it
promotes fair development by ensuring all regions benefit from infrastructure
investments and economic opportunities, thereby diminishing regional disparities
and fostering comprehensive growth.
 Consumer preferences: refer to the specific tastes, expectations, and choices that
individuals or groups of consumers exhibit when selecting products or services in
the marketplace. These preferences are shaped by various factors, including
personal experiences, cultural influences, socioeconomic status, and marketing
efforts. Understanding consumer preferences is crucial for businesses as it enables
them to tailor their offerings to meet customer needs effectively. By analyzing
consumer behavior and preferences, companies can develop targeted marketing
strategies, design products that resonate with their target audience, and ultimately
gain a competitive edge in the market. This insight allows businesses to align their
offerings closely with consumer desires, enhancing customer satisfaction and
loyalty over time.

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 The basic conclusion of the Hotelling model is the principle of differentiation:
companieswant to differentiate as much as possible to reduce price competition. It
may be the case that several forces will lead companies to be based in the same, often
central location (minimum of differences):
 Companies may want to determine the location of demand
 In the absence of price competition
After analyzing each specific model, I will compare the 3 models as follows:
1.7. Compare three location of economic geography models
1.7.1. Similarities
 Focus on Location and Spatial Analysis: All three models emphasize the
importance of location in economic activities, whether it's agricultural land use
(Von Thunen), industrial location (Weber), or spatial competition (Hotelling).
 Transportation Costs: Transportation costs play a critical role in each model.
Von Thunen’s model and Weber’s model both consider transportation costs in
determining optimal locations for economic activities. Similarly, Hotelling’s
model emphasizes proximity to consumers to minimize transportation costs
and gain market share.
 Economic Optimization: Each model seeks to optimize economic outcomes
based on spatial considerations. They analyze how location affects production
costs, market access, and profitability.
1.7.2. Differences
Von Thunen's Hotelling’s
Aspect Weber’s Model
Model Model

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 Industrial location
Spatial
Agricultural land use based on
competition
and crop selection transportation
Focus of Study among firms
based on distance to costs and
selling similar
market proximity to
products
resources
Maximizing
Minimizing Minimizing
market share and
Primary transportation costs production costs,
minimizing
Concern for agricultural including
transportation
products transportation
costs
Central to the
Does not model; firms
Competition Does not explicitly
explicitly address compete for
Consideration address competition
competition market share
based on location
Focuses on
Focuses on crop Includes product
Product industrial location
types and their differentiation to
Differentiation based on resource
proximity to market attract consumers
availability
Market as a central Market influences Market location
Market
force shaping land location based on influences spatial
Influence
use patterns cost factors competition
Proximity to
Proximity to raw
Spatial Distance to market, consumers,
materials, labor,
Factors transportation costs transportation
and markets
costs
Economic Maximizing profits Maximizing Maximizing
Optimization through efficient profits through market share

24
 through strategic
land use cost minimization
location
Agricultural regions Industrial zones Retail and service
Applicability with homogeneous with diverse industries with
products production factors similar products

Question 4: What are some of the challenges and opportunities facing economic
geography in your local areas?
1.8. Challenges in Economic Geography of Vietnam
Despite significant progress in certain industrial sectors, Viet Nam faces the
challenge of uneven development across different industries. This means that while

25
some industries thrive, others may not receive adequate attention, leading to an
imbalanced economic structure.
4.1.1. Economic Transformation and Structural Changes
The rapid pace of urbanization places significant pressure on existing city
infrastructures, resulting in congestion, insufficient public services, and
environmental issues (Dang & Nguyen, 2019). There is a crucial need for significant
investment in urban planning and infrastructure development to accommodate the
expanding urban population.
The movement from agricultural work to jobs in industry and services requires a
workforce with different skills. The primary challenge is to provide effective
education and vocational training programs to re-skill and educate workers to meet
the demands of new industries.
The growth of industry often leads to environmental problems, such as pollution and
depletion of resources. Balancing the need for industrial growth with the imperative to
manage these environmental impacts is a significant challenge for Vietnam.
4.1.2. Regional Disparities
Economic activity is predominantly concentrated in major cities such as Hanoi and
Ho Chi Minh City, resulting in a concentration of wealth and opportunities in these
urban centers. Conversely, rural areas and smaller cities often fall behind in terms of
economic development and infrastructure.
Rural areas struggle with limited access to quality healthcare, education, and other
essential services, perpetuating a cycle of poverty and underdevelopment.
Bridging the gap between more developed and less developed regions poses a
significant challenge. Effective decentralization and the implementation of targeted
regional development programs are crucial to addressing these disparities.
4.1.3. Infrastructure Development
Enhancing the transport network, including roads, railways, ports, and airports, is
crucial for facilitating trade and movement. However, securing funding and efficiently
executing large-scale infrastructure projects remain significant challenges.

26
 Ensuring a stable and sustainable energy supply is essential for industrial growth.
Vietnam faces difficulties in expanding its energy infrastructure, particularly in
integrating renewable energy sources.
As the economy increasingly digitalizes, developing robust digital infrastructure is
necessary to support new business models and technological advancements.
4.1.4. Global Integration
Engaging in trade agreements such as the Comprehensive and Progressive
Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade
Agreement (EVFTA) opens new markets for Vietnamese products but also subjects
local industries to increased global competition.
FDI introduces capital, technology, and expertise to Vietnam, yet there are
challenges in ensuring these investments are sustainable and advantageous for the
local economy. Balancing the interests of foreign investors with those of the local
community is crucial.
Global integration increases Vietnam's exposure to global supply chain disruptions,
as highlighted by the COVID-19 pandemic. Developing resilient supply chains to
mitigate such vulnerabilities is a significant challenge.
1.9. Opportunitys in Economic Geography of Vietnam
1.9.1. Industrialization and Urbanization
The ongoing industrialization and urbanization process in Vietnam offer
opportunities for economic development, job creation, and technological advancement
(Nguyen, Nguyen, & Vu, 2020). Developing industrial clusters and urban centers can
promote agglomeration economies, innovation ecosystems, and higher-value
manufacturing activities.
1.9.2. Digital Economy and Innovation
The rise of the digital economy and innovation presents opportunities for Vietnam to
leapfrog traditional development stages. Investments in digital infrastructure, e-
commerce platforms, and digital literacy programs can foster entrepreneurship,

27
improve productivity, and enhance global competitiveness (Nguyen, Nguyen, & Vu,
2020).
1.9.3. Global Integration and Trade Agreements
Vietnam's participation in global trade agreements, such as the Comprehensive and
Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam
Free Trade Agreement (EVFTA), presents significant opportunities for economic
growth (Dang & Nguyen, 2019). Enhanced market access and trade facilitation can
stimulate export-oriented industries, attract foreign direct investment (FDI), and
integrate Vietnam further into global value chains.
1.9.4. Sustainable Tourism and Cultural Heritage
Vietnam's rich cultural heritage and natural landscapes offer opportunities for
sustainable tourism development. Promoting responsible tourism practices, preserving
cultural sites, and enhancing visitor experiences can generate economic benefits while
preserving the country's cultural identity and environmental resources
(Dang &Nguyen, 2019).

Picture 4: World Heritage Sites in Vietnam

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 In conclusion, Vietnam faces a range of challenges and opportunities in its economic
geography. Addressing challenges such as economic transformation, regional
disparities, infrastructure development, and environmental sustainability requires
strategic planning, policy interventions, and coordinated efforts among stakeholders.
Embracing opportunities stemming from global integration, industrialization, digital
innovation, and sustainable tourism can propel Vietnam towards inclusive and
sustainable economic growth.
These references provide insights into the economic geography challenges and
opportunities in Vietnam, offering theoretical frameworks and empirical evidence to
support the discussion.

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