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Articles

Rethinking State-Society Relations in Vietnam: The Case of Business Associations in Ho Chi Minh City

Pages 87-106 | Published online: 10 Feb 2014
 

Abstract:

The growing private sector in the post-reform Vietnamese economy and its new forms of mobilisation have led to newly emergent social forces that have shaped internal state agendas and political deliberations. With a view to exploring the nature of institutional change in Vietnam, I argue that business associations have played a crucial intermediary role between the state and the private sector over past decades. These associations and the spaces of governance that they constitute are neither characteristic of autonomous actors as suggested by liberal theory nor a form of state corporatism. This paper adopts the “state-in-society” approach, which contends that the state and society should be considered through new governance spaces within the state. These spaces create institutional mechanisms for interaction between the government and business, and provide a framework for deliberative engagement between state and non-state actors. This framework will be tested through an examination of associations of small and medium enterprises in Ho Chi Minh City and their connections to the city authorities. I argue that business associations will be accommodated by the state and will coalesce with existing bureaucratic interests. This proposition contributes to the new research agenda that applies the state-in-society approach to post-socialist institutions.

Acknowledgments

The author wishes to thank the Discipline of International Studies and Politics at The University of Adelaide for making this research possible, Kanishka Jayasuriya for his insightful comments and academic support, David Cannon and Wendy Baker for proofreading, and two anonymous reviewers and the journal editors for their feedback.

Notes

1. From a different analytical standpoint, Wischermann (Citation2011) applies the notion of civil society action and identifies elements of civil society action existing within the state apparatus. This proposition, in essence, also advocates how the state and society overlap in the process of changing rules and policy guidelines. While the study suggests that this process engages both state actors and civic organisations, the dynamics for change in this case stem primarily from reformist state actors. It is thus understood that their actions and policy effects are, to some extent, made more civic by interacting with civic organisations.

2. All materials in original language in this section are translated by the author.

3. This form of mobilisation stems from more grassroots interests and autonomous entities outside the state apparatus. This should be distinguished from mass mobilisation initiated by the state that served to strengthen regime legitimacy before the reform era (see Stromseth, Citation2003, p. 99, note 3).

4. Nghi dinh so 45/2010/ND-CP cua Chinh phu Quy dinh ve to chuc, hoat dong va quan ly hoi [Government of Vietnam, Decree 45/2010/ND-CP on structure, activities and regulation of associations].

5. For detailed macro indicators for the city over a number of years, see Appendix, Figures and .

6. Uy Ban Nhan Dan Thanh pho Ho Chi Minh, ‘Ke hoach phat trien doanh nghiep nho va vua 5 nam thanh pho 2006-2010’ [The City People’s Committee, ‘Five-year development plan for small and medium enterprises over 2006–2010’].

7. For more details about the government structure of the city, see Appendix, Figure .

8. Stromseth (Citation1998) conducted an insightful analysis of these organisations and demonstrated how they became actively engaged with more grassroots interests in trade and labour relations. The author argued that they represent a new form of “hybrid” corporatism in Vietnam, allowing changes in institutional patterns to occur from top-down and bottom-up directions. Given that these organisations are still closely linked to and funded by the state, the recent trends in these organisations’ engagements, I would argue, represent the deliberate expansion of the outreach of the state rather than constituting more autonomous interest-based organisations.

9. Nghi dinh so 56/2009/ND-CP ve Tro giup phat trien doanh nghiep nho va vua [Government of Vietnam, Decree 56/2009/ND-CP on supporting the development of small and medium enterprises].

10. Decree 56/2009/ND-CP.

11. Cac to chuc Hiep hoi Cau lac bo [HUBA, ‘Member Clubs and Associations’], available at http://www.huba.org.vn/cac-to-chuc-hiep-hoi-cau-lac-bo/202, accessed 3 October 2012.

12. See, for example, Dieu le To chuc va hoat dong cua Hoi Cao su-nhua Thanh pho Ho Chi Minh theo quyet dinh so 1109/QD-UBND ngay 16/3/2006 [Regulations on the organisation and function of the Rubber Plastic Manufacturers’, Association according to Decision 1109/QD-UBND on 16/3/2006], available at http://www.hoicaosunhua.com.vn/index.php?mod=about&cid=4, accessed 1 October 2012; and Dieu le To Chuc va hoat dong cua Hoi Doanh nghiep Quan 11 theo quyet dinh so 366/2009/QD-UBND ngay 22/5/2009 [Regulations on the organisation and function of Business Association District 11 according to Decision 366/2009/QD-UBND on 22/5/2009], available at http://www.hoidoanhnghiep11.com.vn/vi/about.php?AID=4, accessed 1 October 2012.

13. Hoi Det may theu dan (AGTEK), Danh mục hoi vien [Association of Garment–Textile–Embroidery–Knitting, list of members], available at http://www.agtek-hcm.com/index.php?Module=Business&Itemid=138, accessed 11 April 2013.

14. These are mainly drawn from the Rubber Plastic Manufacturers’ Association and the Food and Foodstuffs Association, the Shoe and Leather Association, and the Electrical and Mechanical Association.

15. Hoi Doanh nghiep Quan 3, Danh sach hoi vien [Business Association District 3, list of members], available at http://www.doanhnghiepquan3.vn/chitiet/15984625/6/danh-sach-hoi-vien, accessed 11 April 2013.

16. These are mainly drawn from a range of business associations in city Districts 1, 3, 5, 6 and 11.

17. Hoi Cao su-nhua, 14/12/2009, Chum tin van cua hoi [RPMA, Brief bulletin], available at http://www.hoicaosunhua.com.vn/index.php?mod=detailnews&cid=1&id=8, accessed 11 April 2013.

18. Drawn from evidence of monthly and quarterly reports by sectoral and district business associations.

19. HUBA 23/05/2012, ‘Ho tro Doanh nghiep tiep can nguon von kich cau cua Thanh pho’ [Assisting enterprises with access to demand-stimulating capital in the city], HUBA 20/7/2011,Lanh dao Thanh pho gap go doanh nghiep: se giai quyet triet de kho khan vuong mac’ [City leaders and business meeting: In tackling difficulties and concerns].

20. Quyet dinh so 53/2007/QD-UBND ve phe duyet Dieu le to chuc va hoat dong cua Quy bao lanh tin dung cho cac doanh nghiep nho va vua [The People’s Committee, Decision 53/2007/QD-UBND on regulations of the structure and functions of the credit guarantee fund for SMEs in the city].

21. Bo Cong Thuong – Hiep Hoi Doanh nghiep nho va vua Viet Nam, 22/8/2008 ‘Chuong trinh phoi hop hoat dong – Day manh cong tac tro giup phat trien doanh nghiep nho va vua nganh cong thuong giai doan 2008–2012’ [Ministry of Trade and Industry – Vietnam Association of SMEs, Coordinating action program – Accelerating the scheme of supporting SMEs in trade and industry over the period 2008–2012].

22. Nghi quyet 02/NQ-CP ve mot so giai phap thao go kho khan cho san xuat kinh doanh, ho tro thi truong, giai quyet no xau [Government of Vietnam, Decision 02/NQ-CP on some measures to tackle difficulties in business and production, support the market and resolve bad debts].

23. HUBA 7/03/2013, Thuc hien Nghi quyet 02: Cac hoi lai kien nghi [Implementing Decision 02: Associations raise concerns and opinions again]; HUBA 12/03/2013, Hoi nghi gap go dau nam giua lanh dao Thanh pho va doanh nghiep [New-year conference for meeting between city leaders and enterprises]; HUBA 28/03/2013, Toa dam “Nghi quyet 02 va ky vong cua doanh nghiep” [Panel discussion ‘Decision 02 and enterprises’ expectations’].

24. Quyet dinh so 54/2011/QD-UBND ve Phan cong quan ly nha nuoc doi voi cac to chuc hoi tren dia ban thanh pho [Decision 54/2011/QD-UBND on delegating state control over associations in the city].

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