Determinants of the Sustained Development of the Night-Time Economy: The Case of Hanoi, Capital of Vietnam

Abstract

Sustainable development is a subject of study and consideration by scientists and policymakers, especially the sustainable development of the night-time economy. The night-time economy refers to the various economic activities and businesses that primarily operate during the evening and night hours, typically from 6 p.m. until early morning. It includes a diverse range of sectors such as entertainment, dining, hospitality, and nightlife, with establishments such as bars, clubs, restaurants, theaters, and live music venues playing a significant role. The development of the night-time economy refers to the process of managing and promoting the growth of economic activities during the evening and night hours in a manner that balances economic, social, and environmental considerations. Therefore, the paper aimed to identify the factors affecting the night-time economy in Hanoi to achieve the sustainable development of this economy. The paper processed and analyzed the data using SPSS Statistics 26.0 software. The quantitative study included (1) testing the suitability of the scale for the variables using Cronbach’s alpha, (2) analyzing the EFA factors to check the convergence of the observed variables and the separation between the independent variables, (3) checking the correlation to evaluate the problem of multicollinearity of the model, and (4) performing regression analysis to evaluate the impact of the factors on night-time economic development in Hanoi City. The empirical results showed that the variables positively impacted night-time economic development in Hanoi. However, the study found differences in the levels of their impact. Among the four factors, factor 3 (promotion and sharing) had the strongest impact on night-time economic development, followed by factor 2 (city infrastructure and safety), factor 1 (institutions and environment), and factor 4 (nature and resources). The empirical results will help policymakers promote the sustained development of the night-time economy in Hanoi, Vietnam.

1. Introduction

The concept of the night-time economy appeared in the 1970s in the U.K. and began to develop in the 1990s. The night-time economy is the economic activity that occurs from 6 p.m. until 6 a.m. the next day. The nature of the night-time economy and the trends in night-time consumption behavior vary widely between countries and even between different locations within a country. The formal definition of the night-time economy refers to the economic activity that takes place during the evening and night-time hours, typically between 6:00 p.m. and 6:00 a.m. This concept encompasses a wide range of businesses, industries, and services that operate during these hours, catering to the needs and interests of individuals seeking entertainment, leisure, and socializing opportunities after regular working hours. The night-time economy includes various sectors such as nightlife venues (bars, clubs, and pubs), restaurants, theaters, cinemas, music venues, casinos, hotels, and other hospitality establishments. It also encompasses transportation services, including taxis, ride-hailing services, and public transportation operating during the night (Abraham et al. 2019).

The concept of the night-time economy recognizes the economic significance and cultural value of activities that occur outside traditional business hours. It acknowledges that many people’s leisure and recreational activities, as well as employment opportunities, are concentrated in the evening and night hours. The night-time economy often plays a vital role in tourism, entertainment, and the overall vitality of urban areas (Aghasafari et al. 2021).

It is important to note that the specific definition and scope of the night-time economy may vary from one jurisdiction to another, as it depends on local regulations, cultural norms, and the availability of night-time activities in a particular area. Chen et al. noted the role of the night-time economy in sustainable development in South Korea (Chen et al. 2020, 2022, 2023).

The night-time economy contributes to the overall economic growth of a city or a region by providing employment opportunities, boosting tourism, and encouraging cultural development. It is not only often associated with urban areas, where it can enhance the vibrancy and appeal of a city, but also found in smaller towns and rural areas. The goal is to create a vibrant, inclusive, and safe night-time environment that supports local businesses, enhances cultural experiences, and minimizes negative impacts on the community and environment. Key aspects of sustainable development in the night-time economy include:

Economic sustainability: supporting the growth of night-time businesses and industries, fostering entrepreneurship, and creating employment opportunities, while ensuring the long-term viability of these sectors (Abraham et al. 2019).

Social sustainability: promoting inclusivity, diversity, and accessibility in the night-time economy, creating a safe and welcoming environment for all, and ensuring that it caters to various demographic backgrounds and interests (Chen 2011).

Environmental sustainability: minimizing the environmental impact of night-time activities by implementing energy-efficient measures, reducing waste, promoting sustainable transportation options, and managing noise pollution.

Safety and security: implementing effective policing strategies, improving street lighting, and enhancing public transportation options to ensure the safety and well-being of residents and visitors (Andersen et al. 2010).

Urban planning and design: encouraging mixed-use developments and integrating the night-time economy into broader urban planning strategies to create vibrant, walkable, and well-connected urban spaces that are active both day and night.

Policy and regulation: developing appropriate policies, licensing, and regulatory frameworks to support the sustainable growth of the night-time economy while addressing issues related to public health, safety, and community concerns (Madani and Carpenter 2023).

By addressing these aspects, sustained development of the night-time economy can contribute to the overall well-being of the community, enhance the attractiveness of a city or region, and support long-term economic growth.

Governments and local authorities may implement policies and initiatives to support and manage the night-time economy, addressing issues such as safety, public transportation, noise control, and licensing regulations (Chen 2011).

While there is a lack of comprehensive reports and statistical data specifically addressing the socio-economic impact of the night-time economy (NTE) on the country, certain nocturnal activities have long been ingrained as cultural phenomena, playing an integral role in the lives of local communities and serving as tourist attractions. Notably, the presence of night markets, vibrant nightlife offerings, and bustling pedestrianized zones such as the Hoan Kiem Lake area and the Hanoi Old Quarter exemplify these activities. Within this context, gastronomy consistently emerges as a defining characteristic of the night-time economy. In addition to patronizing traditional restaurants, contemporary tourists increasingly display a preference for indulging in culinary experiences at street vendors or modest roadside eateries (Henderson et al. 2012; Li et al. 2019, 2023; Wu et al. 2021a).

Night-time economic activities, which have been developing in many countries, first developed in European cities such as Paris, Toulouse, Zurich, and Amsterdam. Then, this type of economy rapidly developed in major Asian cities such as Tokyo, Chongqing, Beijing, and Bangkok. The night-time economy is beneficial to economic development, stimulates growth, and improves the income of the local population in many countries. Li, M. et al. also focused on the integration of regions of China into sustainable development (Li et al. 2019; Fadly 2020; Giang et al. 2019).

In countries such as China and Wales, government policies have been implemented to foster the growth of the night-time economy (NTE) (Wang et al. 2023; Morano et al. 2020; Ashton et al. 2018). Similarly, in Vietnam, the NTE has emerged and diversified in recent times, encompassing various forms of establishments including pedestrian zones, shopping malls, food courts, convenience stores, night markets, bars, artistic activities, and street entertaining activities. However, these night-time economic activities are currently limited in scale and sporadically scattered across certain cities and tourist destinations such as Hanoi, Ho Chi Minh City, Da Nang, and Hoi An. Although the NTE in Vietnam has not yet reached an ideal type, it has made significant contributions to the country’s economic growth in recent years. Certain establishments are permitted to operate 24 h a day, while others face restrictions on their opening hours (Zhang et al. 2022).

The underdevelopment of the night-time economy in Vietnam, particularly in Hanoi, can be attributed to a lack of awareness regarding its importance and role. Concerns and reservations persist when it comes to formulating policies for night-time economic development. The legal and policy framework aimed at promoting the growth of the night-time economy is largely absent in Vietnam. Hanoi City has not designated specific areas for nocturnal economic activities in its urban planning. As a result of this lack of planning, many night businesses are situated close to residential areas. Numerous restaurants and coffee shops, which feature high-intensity music (such as bars and nightclubs), are located within residential zones, causing noise disturbances that affect the quality of life for nearby residents (Xuan 2020a, 2020b, 2020c).

In Hanoi, comprehensive and in-depth studies evaluating the demand, potential, measurability, direction, and requirements for city-wide night-time economic development across various industries, fields, and localities are lacking. Given the initial stage of the legal framework and policies related to night-time economic development in Vietnam and Hanoi, as well as the increasing number of countries implementing policies to promote the night economy, research on night-time economic development in Hanoi is imperative (GOSC 2019a; Wang et al. 2022a; Huang et al. 2021, 2022; Huang and Huang 2023; Xuan et al. 2020; Zhang et al. 2022).

The NTE contributes to economic growth and increases the revenue of a city or a country. The role of the economy shows that strong and vibrant development can bring many benefits in terms of growth for a city or a country by attracting more. Workers and tourists come to use and enjoy a variety of goods and services provided by the NTE (Chen et al. 2023; Baijiahao 2019; Bianchini 1995; Field 2008).

The NTE contributes to an increased understanding of daytime economic trends, improving local infrastructure. Along with that, the NTE is also a source of motivation in the regeneration and investment in infrastructure so that it can be used 24 h a day. The NTE helps improve the quality of infrastructure products and services such as transportation systems, roads, electricity, water, restaurants, shops, and motels in the area (Liem et al. 2022; Phan 2022).

The development of pre-market economic models can attract the tourism industry, leading to an increase in the share of tourism in total GDP, promoting economic restructuring, and stimulating the development of economic sectors such as agriculture, industry, commerce, and services. The NTE helps to restructure industry, create more jobs, rebuild and develop urban areas, encourage domestic consumption, and generate tax revenue for the locality (Chen et al. 2022, 2023; Wei et al. 2023; Wu et al. 2021b).

Although the NTE has brought many economic and social benefits, as evidenced by the numbers above, the development of the NTE also entails many negative impacts if not well planned and managed (You et al. 2023).

Drinking alcohol is seen as a feature of night activities in urban centers, and this often leads to antisocial behavior and inappropriate behavior such as noise, smashing, littering, etc., on the street. These behaviors can lead to fights and even damage property and injure people. In addition, there are also concerns about drug trafficking, theft, and robbery, which often take place in favorable conditions of night and crowded places. The problem stems from concentrating many people into the city center at night and occupying public spaces to engage in NTE activities. In addition, NTE activities are often accompanied by cash transactions, underground connections, and “semi-legal or illegal” transactions (Zickgraf 2019; Fiori and Foroni 2019; Flammini et al. 2020).

Therefore, there is a research gap about the determinants of the night-time economy, and this study was performed to fill this gap. This paper aimed to identify the factors that affect the sustainable development of the night-time economy in Hanoi, Vietnam. The study contains five sections: Section 1—introduction; Section 2—literature review; Section 3—data and methodology; Section 4 results; Section 5—analysis of regression model. The last section contains the conclusion and recommendations.

2. Literature Review

Assessing the socio-economic impacts of the night-time economy and its development: balancing growth and community safety. The development of the night-time economy has been recognized as a vital contributor to urban growth and cultural enhancement. However, the potential negative consequences of such development have often been overshadowed by the focus on economic benefits. The research aims to address the socio-economic costs associated with the night-time economy, emphasizing the importance of ensuring community safety and well-being. The study will investigate the challenges related to undeclared work, high alcohol and drug consumption, prostitution, trafficking, undeclared trade and tax evasion, and other problems that can emerge in the context of the night-time economy. By examining these issues, this research seeks to provide insights into striking a balance between economic growth and community safety, ultimately contributing to the sustainable development of the night-time economy (Field 2008; Hobbs et al. 2000, 2003; Fu and Wang 2021; Wang and Wang 2023).

The night-time economy has gained increasing attention from researchers, policymakers, and urban planners, given its potential to stimulate economic growth, create employment opportunities, and promote cultural activities. However, there is a growing concern about the socio-economic costs associated with its development. The research aims to explore the complex relationship between the night-time economy and social problems such as safety, public health, and the informal sector, focusing on the following topics (Field 2008; Bianchini 1995; Giancarlo 2017; Hobbs et al. 2003):

Undeclared work and tax evasion: The study will investigate the prevalence of informal employment in the night-time economy and the implications of tax evasion for local economies and public services (GOSC 2019b; Joo et al. 2022; Le et al. 2022).

Alcohol and drug consumption: The research will explore the links between the night-time economy and substance abuse, examining the health and safety risks associated with excessive alcohol and drug consumption and the strain on public health resources (Hobbs et al. 2003; Liu et al. 2023; NEIR 2019).

Prostitution and trafficking: The study will delve into the relationship between the night-time economy and the sex trade, addressing issues such as human trafficking and the exploitation of vulnerable individuals.

Community safety and well-being: The research will examine the impact of the night-time economy on residents, including issues such as noise pollution, crime, and public safety (Rowe and Bavinton 2011a; Raihan and Tuspekova 2022; Shahzad 2020).

Policy and regulation: The study will assess the effectiveness of existing policies and regulations in mitigating the negative impacts of the night-time economy and explore potential interventions to promote more balanced and sustainable development (Rowe and Bavinton 2011a; Turner 2005; Volterra Partners 2014).

The research will contribute to a better understanding of the socio-economic costs associated with the development of the night-time economy. By highlighting the importance of addressing community safety and well-being, the study aims to inform policymakers, urban planners, and stakeholders about the need for a more balanced approach to the growth of the night-time economy. This, in turn, can lead to more sustainable and inclusive urban development, ensuring the long-term prosperity and security of both local communities and visitors. Seijas considered the development and expansion of night-time economic activities and encouraged planners, licensing experts, environmental management agencies, and chambers of commerce to introduce ideas for developing cities and towns at night (Field 2008; Chen 2020). Lessons learned from other countries and cities about the advantages and disadvantages of night-time economic development can be shared. From there, policies can be oriented; investors can be attracted to develop infrastructure and new types of services in cities and towns to develop a vibrant and safe night- and daytime economy (Turner 2005; Rowe and Bavinton 2011b; Baijiahao 2019).

The concept of the night economy first appeared in the 1970s in the UK and Europe. When Europe’s industrial cities began to experience an identity crisis after transforming from production centers to consumption centers, the night economy is said to have been conceived to pull these places back from the brink of ruin, the result of this process leading to changes in the use of some spatial dimensions. The trend is more favorable when warehouses are turned into bars and factories become dance floors. The phrase “Night Economy”, in its most original form is used synonymously with the concept of “24 Hour City”. The term got off to a bad start, as it was closely associated with increased violence and greater damage to city centers as bars opened longer than before and sold higher volumes of alcohol at low prices, as noted in the studies of Hadfield et al. and Roberts (Field 2008; Bianchini 1995; Le et al. 2022; Phan et al. 2022).

The concept of the night-time economy was originally associated with people engaged in drinking and nightlife activities and was generally restricted to the “chaos economy”. Over time, the term was developed to refer to the nocturnal economic activities most represented by the activities of bars and clubs as vehicles for regeneration creating inner-city areas (Chen et al. 2020; Fiori and Foroni 2019; Wang et al. 2022b). On the other hand, the term night-time economy is also considered to include “festivals, cultural initiatives aimed at bringing people back to the city, developing office and residential activities, combining or homogenizing in activities. activities of cultural center facilities, etc., to promote the city as a vibrant cultural habitat and the idea of the city’s nightlife as an area of fun, socialization, and meeting at night (Rowe and Bavinton 2011b; Turner 2005; Zhang et al. 2022). These studies showed that the nightlife area is largely a focus of pedestrian activity, various types of traffic and noise, different cultural behaviors, and facilities that operate 24 h a day, including nightlife facilities such as bars, clubs, and sidewalk cafes in the summer, all playing the role of connecting visitors to nightlife activities (Li et al. 2023; Xuan et al. 2020; Chen et al. 2020, 2022, 2023).

Giancarlo studied the night-time economy of Glasgow, Scotland, which contributed GBP 2.19 billion (13.5% of the city center’s GDP) and over 16,200 equivalent full-time jobs (10.8% of city employment) (Giancarlo 2017; Hobbs et al. 2003, 2000). In 2016, Glasgow City Council’s new urban strategy positioned Glasgow as the most innovative and progressive city in Europe. The strategy identified the importance of a vibrant night-time economy in terms of cultural reputation and tourist appeal (Morano et al. 2020; Ashton et al. 2018; Fadly 2020; Giang et al. 2019).

Rowe and Turner considered Old Crompton Street in Soho, London, finding that the nightlife area mostly included pedestrians, vehicles, different kinds of sounds, noise, different cultural practices, and facilities that were open 24 h per day (Bianchini 1995; Rowe and Bavinton 2011a; Turner 2005; Morano et al. 2020; Ashton et al. 2018).

Zhang et al. described the evolution of the relationship between tourism and the night-time economy (NTE) from 1946 to 2015 (Zhang et al. 2022). According to the study findings, technological, economic, and environmental factors trigger positive feedback, whereas negative political, social, and market factors influence negative feedback. The selective literature review and the consideration of abstracts from the impact of other industries on the feedback loop were limitations of that study.

Volterra Partners indicated many opportunities for London’s night-time economy (Volterra Partners 2014). The Night Tube provides 2000 permanent jobs and 17,000 indirect jobs, improving the working time for people who live far away but work in the city center; providing longer operating times for bars, clubs, and restaurants and reducing congestion at public bus stations. These features make London a more attractive place to work and visit and attract more tourists to visit and spend more money.

Many researchers have studied the development of the night-time economy. Chen et al. studied the structural relationships among night tourism experience, brand satisfaction, and brand loyalty on cultural heritage nights in South Korea (Chen et al. 2020; Liem et al. 2022; Phan 2022). Fiori and Foroni noted the increase in sustainable economic development with models of hospitality and small and medium enterprises. They found that companies need to develop night-time activities (Fiori and Foroni 2019). Flammini et al. found that the production of carbon from the night-time economy is less than that in the daytime by coffee shops, bars, and pubs in Vietnam (Flammini et al. 2020). Joo et al. examined the relationship between economic growth and foreign direct investment in the night-time economy. They found that the night-time economy positively affected economic growth (Joo et al. 2022). Le et al. analyzed the relationship between economic growth, environmental pollution, and foreign direct investment. They reported that the night-time economy has helped to reduce carbon dioxide emissions (Le et al. 2022). Li et al. studied integrated regions in China, concluding that the night-time economy has helped to develop and integrate the provinces of China (Li et al. 2019). Wang et al. examined the strategic development of the night-time economy in Anning County, Yunnan Province, China, which helped structure solutions to improve the night-time economy in Hanoi, the capital of Vietnam (Wang et al. 2022a; Phan et al. 2022).

Zhang et al. considered the spatial expansion and correlation of urban agglomeration in the Yellow River basin based on multisource night-time light data (Zhang et al. 20222). Rowe and Bavinton introduced the concept of the night-time economy that appeared in the U.K. in the 1990s and described the cultural diversity of urban nightlife (Rowe and Bavinton 2011b). Although the night-time economy had developed in a positive direction, with diversified entertainment and employment for the locality, most night entertainment services focused on alcohol consumption.

In the U.K., the night-time industry contributes about 6% of GDP, which is approximately GBP 66 billion, generating more than 1.25 million jobs. In particular, the city of London alone accounts for about 40% of the U.K.’s night-time industry, contributing GBP 26.4 billion and creating direct jobs for 723,000 workers. The fields that attract the most workers are restaurants and hotels (91,125 employees); health and public services (101,282 employees); and transportation and warehouses (107,136 employees) (Morano et al. 2020; Ashton et al. 2018).

3. Data and Methodology

3.1. Data

Appendix A is presented the survey. The research surveyed four selected groups of subjects: people, tourists, business establishments, and managers in Hanoi City, including tourists nationwide that had been on night tours in Hanoi. The paper chose a nonrandom convenience sample. With the above sample size, the number of respondents was insufficient, so the paper selected districts with potential for night economic development, including Hoan Kiem, Tay Ho, Dong Da, Nam Tu Liem, Ha Dong, and Gia Lam. The research obtained 463 usable survey responses.

As the time for night-time economic activities, the paper considered 6 p.m. to 6 a.m. the next morning. The paper studied the current night-time economic development situation in Hanoi from 2016 to 2020 and proposed a development target orientation until 2030.

The sample size according to the initial design was 500 survey questionnaires, including:

For households and business enterprises: 100 questionnaires.

For residents and tourists: 300 questionnaires, randomly selected.

For experts and scientists: 100 questionnaires (subjects were experts and scientists in departments and research institutes in Hanoi).

The study collected a total of 463 completed questionnaires: tourists, 147; people: 110; managers: 104; and business, 102; 37 questionnaires were not returned.

3.2. Methodology

3.2.1. Qualitative Research

Qualitative research through the study examined secondary documents (reports of state agencies, the People’s Committee of Hanoi City, projects on the development of the geotechnical economy of Vietnam and localities, etc.) and documents from seminars and interviews with scientists, business households, and people. The research team organized four scientific seminars to gain ideas from experts in the process of implementing the project. The research team conducted in-depth interviews with 15 experts to develop the scale and questionnaire. After conducting a focused group exchange, the authors adjusted and completed the scale, then conducted a formal survey and analyzed the data using quantitative research methods.

In-depth interview subjects included managers, experts, people and business households.

Research methods such as statistical analysis, comparison, and simulation were also used to evaluate the current situation of urban economic development in Hanoi City.

3.2.2. Quantitative Research

The content of this method presented by the group of authors included the following:

• Design of the survey: The survey was designed with four groups of subjects: (1) tourists; (2) people; (3) managers and (4) business establishments. Each type of ballot consisted of two main parts.
• Selection of the survey sample

About survey subjects: four groups of subjects were selected including residents, tourists, business establishments, and managers. The scopes of the survey were people, businesses, and managers in Hanoi City, while tourists were nationwide but had been on night tours in Hanoi. The sample is selected based on non-random convenience sampling. With the sample size as mentioned above, the proportion of respondents to the survey may not reach 100%. The project selected districts with potential for economic development, including Hoan Kiem, Tay Ho, Dong Da, and the southern districts Tu Liem, Ha Dong and Gia Lam.

The sample size according to the original design was 500 questionnaires, including:

-

For households and businesses: 100 questionnaires.

-

For residents and tourists: 300 questionnaires, randomly selected.

-

For experts and scientists: 100 questionnaires (subjects were experts and scientists in departments and research institutes in Hanoi City).

In the process of statistical data processing, the total number of actual questionnaires collected was 463, with the specific numbers as follows: tourists: 147 questionnaires; people: 110 questionnaires; managers: 104 questionnaires; and businesses: 102 questionnaires.

3.2.3. Data Analysis

The group cleaned up and retained 463 satisfactory responses. Data were processed and analyzed using SPSS Statistics software. The quantitative research methods implemented by the authors included: (1) testing the suitability of the scale for the variables using Cronbach’s alpha; (2) analysis of EFA factors to check the convergence of the observed variables and the separation between the independent variables; (3) checking the correlations to evaluate the problem of multicollinearity of the model; and (4) regression analysis to assess the impact of factors on the development of the urban economy in the area of Hanoi.

To identify the factors affecting night-time economic development in Hanoi City, the paper built an overall correlation model:

ND = f(F₁, F₂, F₃, F₄)

where ND is night-time economic development; F₁… F₄ are the factors determined after running the EFA test.

The paper considered factors F₁, F₂, F₃, and F₄, to determine the strength of their impact, using a specific linear regression equation:

ND = b₀ + b₁F₁ + b₂F₂ + b₃F₃ + b₄F₄

where: the dependent variable is ND—night-time economy

The independence variables are F₁—institutions and environment; F₂—infrastructure and safety; F₃—promotion and sharing; F₄—nature and resources.

Specifically, the following hypotheses were tested:

Hypothesis 1 (H1).

The institutions and the environment will positively affect the night-time economy.

Hypothesis 2 (H2).

Infrastructure and safety will positively affect the night-time economy.

Hypothesis 3 (H3).

Promotion and sharing will positively affect the night-time economy.

Hypothesis 4 (H4).

Natural conditions and resources will positively affect the night-time economy.

4. Results and Current Context of the Night-Time Economy in Hanoi

4.1. Current Context of the Night-Time Economy in Hanoi

In Hanoi, popular forms of the digital economy have been deployed, such as night markets, nightlife streets, 24/24 convenience store chains, and pedestrian streets, and typical entertainment streets such as Ta Hien (Hanoi) have contributed to attracting tourists. Over the years, Hanoi has always been a safe destination with a stable political environment. In 1999, Hanoi was the first city in the Asia-Pacific to be honored with the title of City for Peace by UNESCO. It is an honor and a source of pride not only for the people of Hanoi but also for the people of the whole country. Hanoi, through “a time of bombs and bullets”, has entered “a time of peace” and development. Over the past 20 years, that title has still promoted its value, and Hanoi is mentioned by international friends as a particularly safe destination, especially for politicians.

The NTE in Hanoi City, especially in the Hoan Kiem, Ba Dinh, and Tay Ho districts, has taken shape over many years in the following forms: walking spaces in the Old Quarter, walking spaces around Hoan Kiem Lake, nearby Dong Xuan night market, food streets of Tong Duy Tan, Hang Buom, Ta Hien (Hoan Kiem district), Mai Hac De, Trieu Viet Vuong (Hai Ba Trung district); convenience stores, cafes, bars, discos, karaoke and events, art and culture programs, indoor and outdoor entertainment, etc., at night. Especially on weekends from Friday to Sunday, some night activities have become a cultural feature reflecting life for a segment of the local population and a must-see experience that tourists should schedule when coming to Hanoi, typically including: culinary activities/services; shopping activities/services; tourism activities/services; cultural tourism activities/services, and entertainment.

4.2. Scale Reliability

From the data collected from the survey questionnaires, the paper assessed the reliability of the scale of variables using Cronbach’s alpha (reliability statistics). The paper analyzed and interpreted the results of the analysis as follows:

4.2.1. Natural Conditions and Resources for Economic Development at Night

The paper assessed the reliability of the factors of natural conditions and development resources of the night-time economy and found that the Cronbach’s alpha of the factor of natural conditions and resources for night economic development (DR) was greater than 0.7; however, the correlation coefficient of one of the component variables (“locality has many tourist attractions” (DR4)) with the total variable 0.277 was less than 0.3, showing that the variable did not contribute to the reliability of the scale. Therefore, the paper removed variable DR4 from the scale and performed the second test. The results are shown in

Table 1. Results of the second test of the reliability of the scale of natural conditions and resources for economic development at night.

Variable Code	System Correlation Coefficient of Total Variable	Cronbach’s Alpha If Variable Removed
Natural Condition and Night Economic Development Resources (DR) (Cronbach’s Alpha = 0.877)
DR1	0.641	0.877
DR2	0.774	0.826
DR3	0.823	0.806
DR5	0.710	0.852

(Sources: compiled by author).

.

After removing variable DR4, Cronbach’s alpha of the group was higher than that of the first test (0.877). In addition, the correlation coefficient with the sum of the remaining variables was greater than 0.3, indicating that the group reliability was relatively good.

4.2.2. Infrastructure for Night-Time Economic Development

The reliability of the infrastructure factor for night-time economic development is shown in

Table 2. Infrastructure for development of night-time economy (HT).

Variable Coding	Total Correlation	Coefficient Cronbach’s Alpha for Variable Type
Infrastructure for Night-Time Economic Development (HT) (Cronbach’s Alpha = 0.898)
HT1	0.734	0.882
HT2	0.853	0.763
HT3	0.814	0.872
HT4	0.781	0.866

(Sources: compiled by author).

.

Table 2 shows that Cronbach’s alpha for the factor of infrastructure for night-time economic development (HT) was greater than 0.8. The correlation coefficients of the component variables in the total variable were all greater than 0.3. The minimum reported value was 0.734 (HT1), and the highest reported value was 0.814 (HT2). The infrastructure factor for night-time economic development had a Cronbach’s alpha of 0.898 (>0.8), indicating a very good scale. Thus, the paper concluded that the variables belonging to the infrastructure factor for night-time economic development (HT) were all very reliable.

4.2.3. Safety When Using Economic Services at Night

The reliability of the factor safety when using economic services at night (AT) is shown in

Table 3. Safety when using night-time economic services (AT).

Variable Code	Total Correlation	Cronbach’s Alpha If Variable Removed
Safety When Using Night-Time Economic Services (AT) (Cronbach’s Alpha = 0.940)
AT1	0.836	0.928
AT2	0.852	0.927
AT3	0.814	0.930
AT4	0.908	0.923
AT5	0.899	0.924
AT6	0.865	0.926
AT7	0.869	0.926
AT8	0.357	0.965

(Sources: compiled by author).

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Table 3 shows that Cronbach’s alpha of the safety factor when using night-time economic services (AT) was greater than 0.9, indicating that the scale was very good. The correlation coefficients of the component variables within the total variable were all greater than 0.3. The minimum reported value and the highest reported value were 0.357 (AT8) and 0.908 (AT4), respectively. Based on this finding, we concluded that the safety factor when using night-time economic services (AT) had very high reliability.

4.2.4. Environmental Issues of Night-Time Service Locations

The reliability of the environmental factors for night-time economic service businesses (MT) is shown in

Table 4. Environmental issues caused by night-time economic service business locations (MT).

Variable Code	Total Correlation	Cronbach’s Alpha
Environmental Problems Caused by Night-Time Economic Services (MT) (Cronbach’s Alpha = 0.923)
MT1	0.804	0.906
MT2	0.828	0.898
MT3	0.849	0.891
MT4	0.806	0.905

(Sources: compiled by author).

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Table 4 shows that Cronbach’s alpha of the factor of environmental problems caused by night-time economic service business (MT) was greater than 0.9, indicating the high reliability of the factor. The correlation coefficients of the component variables within the total variable were all greater than 0.3. The highest and lowest values were 0.849 (MT3) and 0.804 (MT1), respectively. Based on this, we concluded that the factor of environmental problems at night-time economic service businesses (MT) was very reliable.

Promotion of Night-Time Economic Services and International Integration.

The reliability of the factor of promotion of night-time economic services and international integration (QB) is shown in

Table 5. Promotion of night-time economic services and international integration (QB).

Variable Code	Total Correlation	Coefficient Cronbach’s Alpha If Variable Removed
Promoting Night Economic Services and International Integration (QB) (Cronbach’s Alpha = 0.923)
QB1	0.780	0.910
QB2	0.858	0.895
QB3	0.825	0.901
QB4	0.781	0.910
QB5	0.761	0.914

(Sources: compiled by author).

.

Table 5 shows that Cronbach’s alpha of the factor promoting night economic services and international integration was greater than 0.8 (0.923), which indicated that the scale was very good. The correlation coefficients of the component variables within the total variable were all greater than 0.7. As such, it was concluded that the variables belonging to this factor all contributed high reliability to the scale.

4.2.5. Development of Sharing and Digital Economies

The reliability of the factor of the development of the sharing and digital economies (CS) is shown in

Table 6. Development of sharing and digital economies (CS).

Variable Code	Total Correlation	Cronbach’s Alpha
Development of Shared and Digital Economies (CS) (Cronbach’s Alpha = 0.908)
CS1	0.756	0.890
CS2	0.780	0.885
CS3	0.796	0.881
CS4	0.774	0.886
CS5	0.736	0.894

(Sources: compiled by author).

.

Table 6 shows that Cronbach’s alpha of the development of the sharing and digital economies was greater than 0.8 (0.908), indicating that the scale was very good. The correlation coefficients of the component variables within the total variable were both greater than 0.7. We thus concluded that the variables belonging to the factor of the development of the sharing and digital economies all contributed very high reliability to the scale.

4.2.6. Institutions and Policies for Night-Time Economic Development

The reliability of the factor of institutions and policies for night-time economic development is shown in

Table 7. Institutions and policies for nighttime economic development.

Variable Coding	Total Correlation	Coefficient Cronbach’s Alpha If Variable Removed
Institutions and Night-Time Economic Development Policy (TC) (Cronbach’s Alpha = 0.944)
TC1	0.832	0.939
TC2	0.880	0.923
TC3	0.874	0.925
TC4	0.882	0.923

(Sources: compiled by author).

.

Table 7 shows that Cronbach’s alpha of institutions and policies for night-time economic development (TC) was greater than 0.8. The correlation coefficients of the variables within the TC were all greater than 0.3. The minimum reported value was 0.832 (TC1), and the highest reported value was 0.882 (TC4). The institutional and policy factors for night-time economic development had a Cronbach’s alpha of 0.944 (>0.8), indicating a very good scale. Thus, it was concluded that the variables belonging to the TC both contributed very high reliability to the scale.

4.2.7. Night-Time Economic Development

The reliability of the factor of night-time economic development (ND) is shown in

Table 8. Night-time economic development (ND).

Variable Code	Total Variable Correlation Coefficient	Cronbach’s Alpha of Variable Type
Night-Time Economic Development (ND) (Cronbach’s Alpha = 0.932)
ND1	0.666	0.930
ND2	0.841	0.919
ND3	0.784	0.922
ND4	0.793	0.921
ND5	0.744	0.925
ND6	0.818	0.919
ND7	0.745	0.926
ND8	0.764	0.923

(Sources: compiled by author).

.

Cronbach’s alpha of night-time economic development was greater than 0.8 (0.932), which indicated that the scale was very good. The correlation coefficients of the variables were good. The correlation coefficients of the components of the variable were all greater than 0.6. Therefore, we concluded that the variables belonging to night-time economic development all contribute very high reliability to the scale.

4.3. Exploratory Factor Analysis (EFA)

From the results for the reliability of the scale, the paper included 42 officially observed variables in the seven groups of factors in the next step. First, the paper simultaneously included all variables in exploratory factor analysis (EFA) following the principle of EFA, ignoring the relationship between dependent and independent variables. On that basis, the paper used the principal axis factoring extraction method combined with promax rotation to more accurately reflect the data structure. The results of the analysis are presented in

Table 9. Results of KMO test of observed variables.

Kaiser–Meyer–Olkin Measure of Sampling Adequacy		0.958
Bartlett’s Test of Sphericity	Approx. Chi-Square	17,146.485
	df	561
	Sig.	0.000

(Sources: compiled by author).

.

We removed the scales that did not meet the requirement, which reduced the set of observed variables into factors that accurately reflected the measurement components of each variable in the EFA discovery factor model. With a selected observed sample size of 463, to ensure the practical results reflected the most meaningful results, we chose a factor loading of 0.55. The results are summarized below, where the exploratory factor analysis conditions that satisfied the following criteria are presented:

Criterion 1: Kaiser–Meyer–Olkin (KMO) coefficient standard: 0.5 ≤ KMO ≤ 1 indicates an appropriate sample size. The results in

Table 10. Results of rotation matrix of observed variables (EFA).

	Factor
	1	2	3	4
TN1		0.564
TN2				0.827
TN3				0.843
TN5				0.663
HT1		0.718
HT2		0.733
HT3		0.659
HT4		0.736
AT1		0.725
AT2		0.739
AT3		0.704
AT4	0.579	0.650
AT5		0.700
AT6	0.670
AT7	0.669	0.551
AT8
MT1	0.692
MT2	0.753
MT3	0.781
MT4	0.765
QB1
QB2
QB3
QB4			0.683
QB5	0.559
CS1			0.696
CS2			0.666
CS3			0.785
CS4			0.818
CS5			0.745
TC1	0.658
TC2	0.687
TC3	0.626
TC4	0.626

(Source: SPSS 26.0 analysis).

show that the KMO was 0.958, indicating a suitable sample size by the collected data.

Criterion 2: We used Bartlett’s test to check whether the observed variables in the group of factors were correlated with each other. If so, the level of statistical significance would be satisfied (Sig. < 0.050). The results showed that Sig = 0.000, which indicated that the factors in the model were correlated with each other and had statistical significance.

Criterion 3: Factor loading > 0.5 is the indicator showing the correlation between the observed variables and the group of factors, where the higher the loading, the stronger the correlation, and vice versa. A load factor greater than or equal to 0.5 indicates that the observed variable has practical significance.

Table 10 shows that, in the AT8 scale, QB1, QB2, and QB3 did not have load factors, so we removed these scales and ran the EFA a second time. In this second run, we included the remaining 38 observed variables in the analysis. The steps were the same as in the first run. Table 10 shows that the KMO was 0.958, which is significant. It was found that the factor analysis sample was consistent with the collected data; however, the observed variables AT4 and AT7 had two loading coefficients, so we removed them and ran the EFA procedure again.

We ran the EFA a total of 26 times.

Table 11. Results of KMO test of observed variables (3rd run).

KMO Measure of Sampling Adequacy		0.954
Bartlett’s Test of Sphericity	Approx. Chi-Square	13,101.903
	df	378
	Sig.	0.000

(Source: SPSS 26.0 analysis).

shows the remaining 36 observed variables and the results of the third EFA run.

Criterion 1: KMO coefficient: 0.5 ≤ KMO ≤ 1 is considered an appropriate sample size. The results in

Table 12. Results of rotation matrix of observed variables (EFA).

	Factor
	1	2	3	4
TN1		0.565
TN2				0.838
TN3				0.849
TN5				0.673
HT1		0.728
HT2		0.743
HT3		0.668
HT4		0.751
AT1		0.728
AT2		0.743
AT3		0.714
AT5		0.691
AT6	0.644
MT1	0.714
MT2	0.768
MT3	0.794
MT4	0.787
QB4			0.626
QB5	0.590
CS1			0.667
CS2			0.641
CS3			0.804
CS4			0.835
CS5			0.744
TC1	0.695
TC2	0.717
TC3	0.664
TC4	0.665

(Source: SPSS 26.0 analysis).

show that the KMO value was 0.954, indicating a significant factor analysis model following the collected data.

Criterion 2: We used Bartlett’s test to check whether the observed variables in the group of factors were correlated with each other in the population. If so, the level of statistical significance would be satisfied (Sig. < 0.050). The results showed that Sig = 0.000, indicating that the factors in the model were correlated with each other and had statistical significance.

Criterion 3: A factor loading > 0.5 is the indicator of the correlation between the observed variables and the group of factors, where the higher the load coefficient, the stronger the correlation, and vice versa. A load factor greater than or equal to 0.5 shows that the observed variable has practical significance. The results of the rotation matrix table (

Table 13. Factor regression results.

Variable	Unnormalized Regression Coefficients		Standardized Regression Coefficients	t	Sig.
	Beta	Standard Error	Beta
Constant	20,112 × 10−17	0.044		0.000	1
Institutions and environment	0.152	0.044	0.152	3.449	0.001 ***
City infrastructure and safety	0.157	0.044	0.157	3.571	0.000 ***
Promotion and sharing	0.238	0.044	0.238	5.400	0.019 **
Nature and resources	0.099	0.044	0.099	2.243	0.025 **

Note: *** p < 0.01, ** p < 0.05. (Source: SPSS 26.0 analysis).

) showed that the observed variables of each factor group had convergent values, showing a high level of significance, with loading coefficients all greater than 0.5.

Criterion 4: We used the eigenvalue to determine the number of factor groups in EFA. The factor group condition is retained in the analytical model if and only if the eigenvalue is ≥1.

Criterion 5: Total variance shows the percentages of extracted factors and observed variables that are lost. If this coefficient ≥ 50%, then the EFA model is suitable. The total variance extracted = 74.042%, which was ≥50% confirming that the EFA model was suitable, and the extracted factor was 74.042% of the variation of the important variables.

Table 12 presents the results of the rotation matrix of observed variables (EFA).

From the analysis of the EFA results, we found the following: the observed variables satisfied the conditions, the selected scales had much higher reliability, and the variables were convergent. The study model included in the next analysis included:

Factor 1 (F1): Institutions and environment included the following variables: AT6, MT1, MT2, MT3, MT4, QB5, TC1, TC2, TC3, and TC4. This factor reflects policy support of and environmental issues facing night-time economic development.

Factor 2 (F2): Infrastructure and safety included the following variables: TN1; HT1, HT2, HT3, HT4, AT1, AT2, AT3, and AT5. This factor reflects the infrastructure and conditions required to ensure security and for the development of the night-time economy.

Factor 3 (F3): Promotion and sharing included variables QB4, CS1, CS2, CS3, CS4, and CS5. F3 reflects the promotion of the sharing economy in the context of the digital economy.

Factor 4 (F4): Nature and resources included variables TN2, TN3, and TN4.

5. Analysis of Regression Models

5.1. Analysis of Tests

The regression coefficients and test results are shown in Table 13.

We confirmed the model was suitable and the variables were significant with the constant residual variance test (Spearman’s test).

The p-value = 0.001 shows the correlation between the institutions and environment and the development of the night-time economy.

The p-value = 0.000 shows the correlation between city infrastructure and safety and the development of the night-time economy.

The p-value = 0.019 shows the correlation between promotion and sharing and the development of the night-time economy.

The p-value = 0.025 shows the correlation between nature and resources and the development of the night-time economy.

We conducted a level test. Following the model, the results showed that the R² was 0.837, and the test coefficient was statistically significant. The adj R-squared = 0.837 indicates that 83.70% of the change in F1—institutions and environment, F2—city infrastructure and safety, F3—promotion and sharing, F4—nature and resources can explain the sustainable development of the night-time economy in Hanoi, Vietnam.

5.2. Discussion of Regression Results

The nexus of institutions and environment, infrastructure and safety, promotion and sharing, as well as natural resources, plays a significant role in the development of the night-time economy in Hanoi. The interplay of these factors shapes the dynamics and potential of the night-time economy in the city.

The institutional framework and regulatory environment in Hanoi have a direct influence on the growth and sustainability of the night-time economy. This includes government policies, licensing regulations, urban planning, and the legal framework governing night-time economic activities. A conducive institutional environment can foster a thriving night-time economy by providing necessary support, guidance, and a clear legal framework.

Adequate infrastructure, including transportation networks, public facilities, and well-maintained urban spaces, is essential for the successful operation of the night-time economy. Safe and well-lit streets, efficient public transportation systems, and reliable connectivity contribute to attracting both locals and tourists to engage in night-time activities. Furthermore, ensuring safety and security measures, such as crime prevention strategies and emergency services, is crucial for building trust and confidence among night-time economy stakeholders.

Effective promotion and sharing of information about night-time activities, events, and destinations are vital for raising awareness and attracting visitors to Hanoi’s night-time economy. This involves marketing campaigns, advertising efforts, digital platforms, and social media engagement to disseminate information about the diverse offerings and experiences available during the evening and night-time hours.

The availability and preservation of natural resources in and around Hanoi can enhance the attractiveness and uniqueness of the night-time economy. Parks, waterfronts, scenic areas, and natural landscapes can be leveraged to create night-time leisure and entertainment options, such as night markets, outdoor performances, or dining experiences that incorporate natural surroundings.

Understanding and harnessing the nexus of institutions and environment, infrastructure and safety, promotion and sharing, as well as natural conditions and resources are crucial for policymakers, urban planners, and stakeholders involved in the development and management of the night-time economy in Hanoi. By considering these factors, Hanoi can create a vibrant and sustainable night-time economy that contributes to the city’s social, cultural, and economic growth. We identified variables with a positive influence on night-time economic development in Hanoi City. These results show that, if promotion and sharing increase by 1%, then the night-time economy in Hanoi will grow by 0.23%.

If infrastructure and safety increase by 1%, then the night-time economy in Hanoi will grow by 0.157%.

If institutions and environment increase by 1%, then the night-time economy in Hanoi will grow by 0.152%.

If natural conditions and resources increase by 1%, then the night-time economy in Hanoi will grow by 0.099%.

Therefore, the levels of impact differed. Of the four factors proposed from the model, F3 (promotion and sharing) had the strongest impact, followed by F2 (city infrastructure and safety), F1 (institutions and environment), and F4 (nature and resources). The normalized regression coefficient showed the contribution of each factor to night-time economic development in Hanoi (

Table 14. Contribution of each factor to the development of the night-time economy in Hanoi.

ND = b0 + 0.152F1 + 0.157F2 + 0.238F3 + 0.099F4
Independent Variable	Absolute Value	%
Institutions and environment	0.152	23.53%
Infrastructure and safety	0.157	24.30%
Promotion and sharing	0.238	36.84%
Nature and resources	0.099	15.33%
Total	0.646	100.00%

(Source: SPSS 26.0 analysis).

).

Thus, the importance of the factors ranked in order from highest to lowest was promotion and sharing; infrastructure and safety; institutions and the environment; nature and resources.

6. Conclusions and Recommendation

The development of the night-time economy in Hanoi, or any city, requires a balanced approach that takes into consideration the nexus of various factors, including institutions and environment, city infrastructure and safety, promotion and sharing, and nature and resources. There was a brief overview of how these elements can be integrated for the successful development of Hanoi’s night-time economy:

Institutions and environment: collaboration between government institutions, local authorities, and businesses is crucial for establishing regulations, policies, and guidelines that support the growth of the night-time economy while addressing environmental concerns. This can include zoning regulations, licensing policies, and initiatives to promote responsible business practices that minimize environmental impact.

City infrastructure and safety: improving the city’s infrastructure is essential for creating a safe and accessible night-time environment. This can involve expanding public transportation options, enhancing street lighting, installing security cameras, and developing pedestrian-friendly urban spaces. Safe and reliable infrastructure can encourage more people to participate in night-time activities and make the city more attractive to visitors.

Promotion and sharing: marketing Hanoi’s night-time offerings to both residents and tourists can help boost the local economy and create a sense of shared pride in the city’s cultural identity. This can be achieved through targeted campaigns, collaboration with local businesses, and leveraging social media to promote events and venues. Sharing success stories and best practices from other cities can also provide valuable insights for Hanoi’s development.

Nature and resources: integrating natural spaces and resources into the night-time economy can enhance the appeal of Hanoi’s urban environment and support sustainable development. This can include incorporating green spaces and water features into the urban design, utilizing natural landmarks for events or attractions, and promoting eco-friendly practices among businesses and patrons.

By considering these interconnected factors, Hanoi can develop a vibrant, sustainable, and inclusive night-time economy that contributes to the overall quality of life for its residents and visitors, supports local businesses, and fosters a sense of community pride.

Based on the research and implementation of the study with the obtained results, some conclusions can be drawn, as follows:

First, through an overview of the geospatial economy, the study focused on clarifying the theoretical and practical basis of the NTE and an overview of the theories related to the NTE. To develop the urban economy in general and the night tourism industry in particular, many factors must be included: resources, infrastructure, facilities, political security, social safety, people’s awareness and policies to support the development of technical skills.

Second, the potential and actual status of the development of the urban economy in Hanoi City should be assessed. The NTE of Hanoi City includes specific business activities in trade, services, and tourism such as food, art, music, festivals; events, etc., most of which operate within the time frame from 6:00 p.m. to 0:00 a.m., and some services are piloted until 2 a.m.

Economic activities contribute to diversifying entertainment and commercial activities for the locality, contributing to creating jobs for laborers, creating income sources for many business establishments, attracting foreign investment, investing in tourism, and increasing revenue for the state. In terms of the social aspects, CCA activities aim to promote a culture of behavior in the community of local people, create a new look in urban architecture, connect local authorities with residents and tourists, and solve problems with more jobs for workers.

Currently, the NTE of Hanoi City does not have any agency or department in charge of managing night-time operations. The management of the land economy is carried out by vertical agencies like daytime economic activities, including departments and agencies and the People’s Committees of districts.

Third, through analysis of the current situation and lessons learned on the development of regional and foreign markets for Hanoi city, the study set an orientation on prioritizing types of night-time services to be developed, such as entertainment services (entertainment areas, river sightseeing by boats, trams, cyclos, bicycles, etc.) supermarkets, shops, night markets; restaurants, street eateries; coffee and beverage services; bars and discos; massage and beauty services, etc.

Fourth, in terms of space, it is necessary to focus on developing NTE areas in the following districts: Hoan Kiem, Ba Dinh, Hai Ba Trung, Tay Ho, Dong Da, Cau Giay, Hoang Mai, Nam Tu Liem, Son Tay, Soc Son, and Dong Anh. However, the development focus and the types of economic development of the regions are different, and the priorities are different. In addition, the paper also proposes specific models for the urban economy of Hanoi city: (1) a model of walking street, “Downtown” Hanoi; (2) a model of a night food area; (3) a model of a performing arts space; and (4) a model of general service business area. Other cities in Vietnam can learn lessons from Hanoi for the sustainable development of the night-time economy. In general, the night-time economy should focus on the downtown areas that can promote the development of the local economy.

Fifth, the world economy and the domestic economy are facing many negative impacts with the trend of decreasing growth due to trade conflicts, global climate change, and the ongoing COVID-19 pandemic. Vietnam’s economy is increasingly being integrated into the world economy, so it is also influenced in many ways by the fluctuations at the global level. Vietnam will face many difficulties and challenges. However, besides that, Vietnam still has favorable factors for the development of geo-economics. Based on the views of the Prime Minister in Decision No. 1129/QD-TTg and the viewpoints of the research group on the development of pre-existing economies in Hanoi, the research team proposed six groups of solutions for the geo-economic map in Hanoi city: (1) Solutions for perfecting institutions and policies for the development of geo-economics in the area of Hanoi City; (2) Solutions for the organization of the management apparatus for the development of the pre-market economy (decentralization, etc.); (3) Solutions to raise awareness about the development of the pre-market economy; (4) Solutions for social order and safety for the development of the pre-market economy in Hanoi City; (5) Solutions for investment in infrastructure for the development of the urban economy in the area of Hanoi City; and (6) Other solutions related to the development of geo-economics in Hanoi City.

This paper has some limitations. The authors did not refer to other impacts on the sustained development of the night-time economy in Hanoi, Vietnam due to a lack of time and the fact that the survey was not large enough to answer the research questions. The authors hope that other researchers can study these issues in Hanoi, Vietnam in the future.