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LOCALIZING GLOBAL COMPETITION LAW IN VIETNAM: A BOTTOM-UP PERSPECTIVE

Published online by Cambridge University Press:  12 October 2015

John Gillespie*
Affiliation:
The author is Director of the Asia Pacific Business Regulation Group, Department of Business Law, Monash Business School, Monash University, [email protected].

Abstract

Global laws are an important inspiration for commercial law reforms around the world. Much analysis of this phenomenon emphasizes the capacity of regulatory élites, such as lawmakers, courts and lawyers, to adapt global laws to local conditions. What is often absent from this top-down analysis is a wide-ranging consideration of what the regulated think about global laws. This article aims to redress this shortcoming in the comparative literature by drawing fresh perspectives from bottom-up responses to global laws. It takes from socio-legal scholarship a framework for analysing the interface between thought formation and social action and explores the question—how do the regulated conceptualize and localize global laws? If compliance is socially constructed from below, as this literature suggests, then attempts to understand legal globalization by focusing exclusively on regulatory élites misses much of the localization story.

Type
Articles
Copyright
Copyright © British Institute of International and Comparative Law 2015 

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References

1 The term ‘global laws’ is used to describe the written and unwritten legal rules, precepts and doctrines that give meaning to the predominantly Western laws and regulations promoted by international development agencies and transnational agencies. See generally LeGoff, P, ‘Global Law: A Legal Phenomenon Emerging from the Process of Globalization’ (2007) 14 Indiana Journal of Global Legal Studies 119Google Scholar; Twining, W, ‘Normative and Legal Pluralism: A Global Perspective’ (2010) 20 DukeJComp&IntlL 473Google Scholar.

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18 Formal legal convergence produces similar statutory rules across different geopolitical regimes. It contrasts with functional legal convergence, which generates similar patterns of compliance with global laws in different countries. See eg Carruthers, B and Halliday, T, ‘Negotiating Globalization: Global Scripts and Intermediation in the Construction of Asian Insolvency Regimes’ (2006) 31(3) Law & Social Inquiry 521CrossRefGoogle Scholar.

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61 The author conducted 18 in-depth interviews with the following VCAD officials in Hanoi: Nguyen Chi Mai, March 2007; Le Thanh Vinh, October 2007, March and October 2008, March 2010, April 2011, July and August 2012, April and September 2013; Hoang Xuan Bac, March and April 2012; and Pham Chau Giang March and April 2013 (hereafter referred to as ‘interviews with VCAD officials’).

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74 The interviews were conducted with the assistance of NH Quang and Associates, a Vietnamese law firm, and two other Vietnamese law firms that wished to remain anonymous.

75 Interviews with lawyers Nguyen Tien Lap and Nguyen Hung Quang, NH Quang & Associates, Hanoi, 2004–15; Nguyen Bao Huy, Legal Consultant, Leadco, Hanoi, November 2012; September 2013; Pham Nghiem Xuan Bac, Managing Partner Vision & Associates, Hanoi, June 2012; Luu Hoang Ha, Managing Partner, LDV Lawyers, HCMC, June 2012; Nguyen Anh Tuan, Managing Partner, Bizconsult, Hanoi, October 2013.

76 See Circular No 2 on the Management of Construction Projects 29 January 1993; later replaced by Decree 88-1999-ND-CP of the Government dated 1 September 1999 and then Law 61-2005-QH11 on Tendering 2006.

77 SOEs accounted for only 26 per cent of national construction in 2009–10; however, this figure does not reveal their domination of the State-funded construction sector: World Bank Vietnam (n 56) 28.

78 Thirty-four interviews with five senior construction managers were conducted in Nam Định province in March and April 2005; March 2006; April 2007; November 2009; April and September 2012; and in Hanoi in June 2009, April 2010 and March 2013. The construction managers did not want their firms or their names identified.

79 A recent survey showed that State officials and SOE managers remained more in favour of State management of the economy than the general public: World Bank (n 56) 35–8.

80 These findings are consistent with other studies about SOEs in Vietnam, see S Cheshier and J Pincus, ‘Minsky au Vietnam: State Corporations, Financial Instability and Industrialisation’ in D Tavasci and J Toporowski (eds), Minsky, Crisis and Development (Palgrave Macmillan 2010) 188–206.

81 There is some validity to this assertion because international donors, especially the World Bank and JICA, applied considerable pressure to secure the passage of the Law on Construction 2008 and Decree 58/2008/ND-CP, guiding the implementation of the Law.

82 M Beresford and Dang Phong (n 53) 151–3.

83 The use of the Chinese/Vietnamese term hợp với luận lý, rather than the standard term for morality (đào đức), was significant, because it invoked a neo-Confucian concept of spiritual morality, an obligation generally reserved for the élite.

84 S Cheshier, ‘The New Class in Vietnam’ (2010) unpublished PhD thesis, University of London, 31–51.

85 This case study is based on 25 interviews with the four owners of the computer network conducted in Hanoi during March 2006, April 2007, June and November 2010, April 2011, April and September 2013. The computer manufacturers did not want their firms or their names disclosed.

86 Nguyen Sa, ‘Vietnamese Companies Join Forces to Regain Laptop Market Share’ (1 October 2007) Duong Co Don Blog Doi <http://duongcodon.blogspot.com.es/2007/01/vietnamese-companies-join-forces-to.html>

87 World Bank Vietnam (n 56) 28.

88 This case study is based on 22 interviews with four members of the battery group conducted in Hanoi during March 2005, March and April 2007, April 2009, June and November 2010, April 2011, April and September 2013, March 2014. The members did not want their firms or their names disclosed.

89 This finding is consistent with other research showing that in uncertain trading conditions businesses in Vietnam form defensive personal networks based on trust: see Nguyen, TV, Weinstein, M, and Meyer, AD, ‘Development of Trust: A Study of Interfirm Relationships in Vietnam’ (2005) 22(3) Asia Pacific Journal of Management 211–35CrossRefGoogle Scholar.

90 This finding connects with the social construction literature showing that law is socially embedded. See generally Gerber (n 8).

91 See generally Nelken (n 7).

92 Owens et al. (n 50) 477–99.

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96 This finding is consistent with Anthony Giddens’ thesis that cosmopolitan urban dwellers construct multiple identities to deal with the complexity of globalization and modernity. See A Giddens, Modernity and Self-Identity (Stanford University Press 1991) 70–108.

97 B Naughton, Growing Out of the Plan: Chinese Economic Reform 1978–93 (CUP 1996) 23–4.

98 A Kim, Learning to Be Capitalists (OUP 2008) 1–20; V Nee (n 49) 53–74.

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104 See Graziadei (n 9) 705. Also see Sacco, R, ‘Legal Formants: A Dynamic Approach to Comparative Law (pts. 1 & 2)’ (1991) 39 AmJCompL 343Google Scholar.

105 Lauren Benton used the term ‘cultural intermediaries’ to describe the residents of European colonies who used their knowledge to adjust European laws to suit local cultural precepts and practices: see L Benton, Law and Colonial Cultures: Legal Regimes in World History 1400–1900 (CUP 2002) 3–9.

106 See Zhang, Qing, ‘A Chinese Yuppie in Beijing: Phonological Variation and the Construction of a New Professional Identity’ (2005) 34 Language in Society 431CrossRefGoogle Scholar.

107 See FC Deyo and RF Doner, ‘Dynamic Flexibility and Sectoral Governance in the Thai Auto Industry: The Enclave Problem’ in FC Deyo, RF Doner and E Hershberg (eds), Economic Governance and the Challenge of Flexibility in East Asia (Rowman & Littlefield 2001) 107–36.

108 B Cashore, G Auld and S Renckens, ‘The Impact of Private, Industry, and Transnational Civil Society Regulation and Their Interaction with Official Regulation’ in Parker and Lehmann Nielsen (n 10) 343.

109 See Molinsky, A, ‘Cross-Cultural Code-Switching: The Psychological Challenges of Adapting Behavior in Foreign Cultural Interactions’ (2007) 32(2) Academy of Management Review 622CrossRefGoogle Scholar.

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111 Research suggests that the tacit knowledge flows in transnational production regimes reflect the regulatory conditions where the lead firms are domiciled. See Pauly, LW and Reich, S, ‘National Structures and Multinational Corporate Behaviour’ (1997) 51(1) IntlOrg 1Google Scholar.

112 See generally Berkowitz et al. (n 34) 167.

113 See Giddens (n 96); see also K Gergen, The Saturated Self: Dilemmas of Identity in Contemporary Life (Basic Books 1991).

114 Giddens (n 96) 32–6, 74–84, 184–8. Systems theory also links regulatory change to complexity. See AF Muller, ‘Social Anthropology and Niklas Luhmann's Concept of Society’ in M King and C Thornhill (eds), Luhmann on Law and Politics: Critical Appraisals and Applications (Hart Publishing 2006) 165.

115 See Okamoto, D, ‘Toward a Theory of Panethnicity: Explaining Asian American Collective Action’ (2003) 68 American Sociological Review 811CrossRefGoogle Scholar.

116 See eg Braithwaite, J, ‘Responsive Regulation and Developing Economies’ (2006) 34(5) World Development 884–98CrossRefGoogle Scholar.

117 See Santos (n 28) 253–300.

118 See Fox, E, ‘Economic Development, Poverty and Antitrust: The Other Path’ (2007) 13 Southwestern Journal of Law and Trade in the Americas 211Google Scholar.