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New Transnational Governance and the Changing Composition of Regulatory Pluralism in Southeast Asia

Published online by Cambridge University Press:  29 May 2015

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Abstract

Over the past three decades, Transnational Production Regimes (TPRs) have become the main source of technical and regulatory knowledge for Southeast Asia corporations. Typically TPRs transfer knowledge from lead firms located in the industrial North to supplier firms located in Southeast Asia. Regulatory knowledge transferred through TPRs largely bypasses Southeast Asian laws and legal institutions to directly influence the behavior of supplier firms. Although socio-economic studies show that TPRs are responsible for generating much wealth creation in the region, they hardly register in the socio-legal literature. Drawing on ethnographic studies conducted in Vietnam, this paper will attempt to explain why different types of TPRs produce different regulatory responses in Vietnamese firms. Preliminary findings suggest differences in the way that regulatory knowledge transmitted through Northeast Asian and Euro-American TPRs is absorbed and integrated into the organisational fabric of Vietnamese firms. They also shed light on two well-documented phenomena in Vietnam. In conclusion the paper will argue that TPRs displace state commercial laws and are partially responsible for the slow progress of conventional law and development projects in changing regulatory practices. It will contend that the different kinds of TPRs generate regulatory pluralism and the uneven application of state law in different business sectors.

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Copyright © Faculty of Law, National University of Singapore 2014

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References

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73 “Intel talks about investment environment in Vietnam” Vietnam Economic Times (24 January 2008) (“Intel nói về môi trường đầu tư Việt Nam” Vietnam Economic Times (24 January 2008)) (“Vietnam Economic Times 2008”).

74 The CoC contains five principles: Intel conducts business with honesty and integrity; Intel follows the letter and spirit of the law; Intel employees treat each other fairly; Intel employees act in the best interests of Intel and avoid conflicts of interest; Intel employees protect the company’s assets and reputation. See Intel Corporation, Intel Code of Conduct, online: <http://www.intel.com/content/www/us/en/policy/policy-code-conduct-corporate-information.html> (last accessed 18 November 2013).

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76 “Intel talks about investment environment in Vietnam” Vietnam Economic Times (24 January 2008) (“Intel nói v̀ môi trường đ̀u tư Việt Nam” Vietnam Economic Times (24 January 2008)).

77 Interviews Lam Vu Thao, In-house counsel, Intel Vietnam, Ho Chi Minh City, 14 October 2008 and 3 July 2009 (conducted by Nguyen Hung Quang) and 17 and 22 February 2012 (conducted by the author).

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80 Over 50 Interviews with six senior managers of a sporting goods and footwear firm were conducted by the author with the assistance of N.H. Quang and Associates and research assistants between July 2004 and April 2012 in Hanoi, Vietnam.

81 In 1999, Nike responded to global pressure about poor labour conditions in Vietnamese factories manufacturing Nike products and introduced an “Internal Code of Conduct” modelled on International Labour Organization (ILO) conventions for the establishment and protection of workers.

82 This case study is based on over 20 interviews with three managers of the firm conducted from 2008-2013.

83 Sy dien” literally means “face keeping” but connotes “reputation”.

84 This study is based on over 30 interviews with three managers of the Vietnamese cooper wire distributors and a Korean cooper wire manufacturer. The interviews were conducted from 2005-2011 in Hanoi.

85 Literally “soldier clubs”, a term referring to early morning trading circles.

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94 See Carruthers, Bruce & Halliday, Terrence, “Negotiating Globalization: Global Scripts and Intermediation in the Construction of Asian Insolvency Regimes” (2006) 31:3 Law & Soc. Inquiry 521.CrossRefGoogle Scholar

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96 See Berkowitz, Daniel, Pistor, Katharina & Richard, Jean-Francois, “The Transplant Effect” (2003) 51 Am. J. Comp. L. 163 CrossRefGoogle Scholar at 167.

97 See Deyo, Fredrick, “Addressing the Development Deficit of Competition Policy: The Role of Economic Networks” in Dowdle, Michael, Gillespie, John & Maher, Imelda, eds., Asian Capitalism and the Regulation of Competition (Cambridge: Cambridge University Press, 2013)Google Scholar.

98 See Lars H. Gulbrandsen, “Dynamic Governance Interactions: Evolutionary Effects of State Responses to Non-State Certification Programs” (2012) Regulation & Governance doi:10.1111/rego.12005, online: <http://onlinelibrary.wiley.com/doi/10.1111/rego.12005/full> (last accessed 25 November 2013).

99 Interviews Pham Minh Thang, Director P & Q Solutions, Hanoi, April 2013.

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