Cooperation-Competition Relationship between Small Traditional Handicraft Enterprises in the Proximity Context: Case Study in the Periphery of Hanoi – Vietnam

Small traditional handicraft enterprises contribute a significantly to develop society, economics, and culture of the local through creating jobs for rural labors, increasing local budget, as well as maintaining and developing the traditional cultural values. There are interactionsamong the firms due to near locations. The aim of this paper is to describe characteristics of the cooperation- competition among small traditional handicraft enterprises located adjacent to Hanoi capital city. Moreover, the paper also points out the relationship between cooperation- proximity, and competition-proximity. It finds that the cooperation-competition relationship always exists among the enterprises and in the proximity condition. This paper gives recommendations on the strengthening cooperation between firms and improving local industry based on the cooperation – competition relationships.The methodology of research applied isa qualitative analysis, an exploratory analysis in the grounded theory.