Why Vietnam Has Become A Battleground For Corporate Governance Standards
Written by: Alex Capri, Visiting Senior Fellow, NUS Business School
By most accounts, the U.S.-China trade war has been good for Vietnam. As Washington and Beijing’s trade dispute festers, a growing number of multinational companies have moved portions of their operations out of China and into Vietnam or are developing plans to do so.
This is not just about the avoidance of U.S. tariffs on Chinese-origin goods. The real catalysts are the U.S.-China geopolitical rivalry and, more specifically, the intensifying technology race. International businesses are scrambling to avoid becoming victims of the next round of politically “weaponized” supply chains.
This influx of foreign companies into Vietnam, however, with vastly different approaches to corporate governance, has set the stage for a clash of standards and business practices. Vietnam has become a microcosm of conflicting corporate governance models, especially between China and the West.
Going forward, who will be the rule-makers and rule-takers in Vietnam?