Impact of Urbanization on Household Economy Development in Sa Dec Flower Village, Dong Thap

Sa Dec Flower Village provides flowers for southern Vietnam and as a result makes an important contribution to the socio-economic development of the region, especially via tourism. This article aims to discern the factors affecting the economic and social changes of the Sa Dec Flower Village to establish appropriate development strategies. The impact on the economic changes of the flower village based on the following five key factors (1) Local orientation, (2) Urbanization, (3) Market economy, (4) Agricultural cooperative model, and (5) Traditional Flower Village engagement. There have been many previous related studies examining the relationship between these factors and household economic development in the context of urbanization; however, each study was done separately without combining all analyses in the same study. To test this impact, the paper applies the Exploratory Factor Analysis (EFA) model to find out which factors have the most impact on the dependent variable Household Economic Development. The study surveyed 350 cases in two areas of Tan Quy Dong ward and Tan Khanh Dong ward which have strong urbanization rate and a long history of development of ornamental flower craft villages as well as the largest flower production areas in Sa Dec flower village. The results show that factors of Urbanization, Market economy and Traditional Flower Village engagement (of which Urbanization is the strongest one) have the impact on the household economic development. The two left variables Local Development Orientation and Agricultural Cooperative Model do not have a significant relationship or impact on the dependent variable and are excluded from the regression model. Based on the research results presented, this paper suggests possible solutions to improve the efficiency of the economic development of Sa Dec flower village.