As the rural revitalization strategy advances further and the process of agricultural modernization accelerates, developing industrial clusters for local characteristic agricultural products has become a key avenue to boost high-quality regional economic development and increase farmers’ incomes. Known as the "Hometown of Bamboo in China," Longyou County has a bamboo forest area of around 410,000 mu (approximately 27,333 hectares), a standing bamboo stock of more than 70 million culms, and an annual output value of its bamboo industry exceeding 4 billion yuan (RMB)—making it one of the most distinctive industries for improving local people’s livelihoods in the county. However, the industry faces challenges such as extensive resource use, inadequate industrial chain extension, insignificant brand value, and weak interest links with communities, rendering the traditional exogenous-driven model no longer viable. Following the principles of the Neo-endogenous Development Theory and from its perspective, we conducted a thorough review of the strengths and challenges faced by the Longyou Bamboo Industry Cluster (a cluster of bamboo-related businesses in Longyou). Based on this review, we put forward directions for better development, such as: supporting the growth of local stakeholders, promoting the integration of the primary, secondary, and tertiary industries, establishing a network for innovation and exchange, implementing a dual strategy of brand building and green development, and improving ways of internal collaboration and external cooperation. This study aims to provide both theoretical guidance and practical support for the Longyou Bamboo Industry, as well as similar characteristic industries in other regions.