Factors affecting night economy development in Ho Chi Minh City

Abstract

The night economy has been a spearheading economic sector in economic development after the COVID-19 pandemic in many countries, including Vietnam. It has created jobs and supported a part of the population in increasing their income, significantly contributing to the budget revenue of some major cities. The article aims to examine the factors affecting the night economy in Ho Chi Minh City (HCMC). The research surveyed 273 people in the period December 2022–February 2023, who are night business households and nighttime consumers of Generation Z. The survey was conducted via the Zalo online platform, at nighttime business locations such as pedestrian streets, recreational parks, markets, street food complexes, etc. The data was then analised using SMARTPLS software and partial least squares structural equation modeling (PLS-SEM). The research results show that there are six factors affecting the development of the night economy in Ho Chi Minh City, including: (1) state policy; (2) business environment; (3) infrastructure; (4) size and quality of labor resources; (5) socio-cultural characteristics; and (6) consumer trends. The article also proposes several solutions for individuals, organizations, and executives managing night activities in Ho Chi Minh City. The City needs to have open mechanisms that enable companies or individuals to participate in and contribute to the development of the night economy, attracting not only people in the city but also those in the country and other neighboring countries in the region.