Title: Exploring informal economic activities in Vietnam: Street economies, tourist perceptions and local livelihoods
Authors: Khanh Ta Gia
Volume: 9
Issue: 10
Pages: 97-107
Publication Date: 2025/10/28
Abstract:
In many developing countries, informal economic activities such as street vending and sidewalk services play a vital role in urban tourism, offering authentic cultural experiences while supporting local livelihoods. In Vietnam, where street economies are deeply embedded in daily life and tourist experiences, understanding how tourists perceive and engage with these activities is increasingly important for sustainable tourism development. This study investigates the relationship between tourist perception, engagement in street economies, and local livelihood sustainability in Vietnam's urban tourism context. Drawing on Social Exchange Theory (Blau, 1964), the research develops a conceptual model to examine how tourists' positive perceptions influence their participation in informal economic activities, and how such engagement contributes to the livelihoods of local vendors, besides the moderating role of risk perception is also explored. Data were collected through a structured questionnaire with 325 valid responses from both domestic and international tourists in Hanoi and Ho Chi Minh City. Using Structural Equation Modeling (PLS-SEM), the results confirm that tourist perception significantly promotes engagement in street economies, which in turn enhances local livelihood sustainability. Moreover, risk perception is found to positively moderate the relationship between tourist perception and engagement. The study contributes to the tourism literature by highlighting the informal economy's role in sustainable urban tourism and provides practical implications for destination managers, policymakers, and local vendors.