The firm agglomeration is often mentioned as an important factor for local economic growth. However, it is little known about whether the firm agglomeration can bring direct benefits for local children. In this paper, we attempt to examine the effects of the firm agglomeration on education and labor of local children in Vietnam. The firm agglomeration is measured by the firm revenue per capita at the district level. Although the firm agglomeration does not have significant effects on school enrolment, our study finds that firm agglomeration helps children improve the school quality (which is measured by the number of completed school grades). The firm agglomeration also reduces the probability to work for children. Interestingly, we find that firm agglomeration has a larger effect on girls than boys, and on disadvantageous groups of children such as rural, ethnic minorities, and those having lower education parents.