Understanding human rights and corporate responsibility: Vietnam's response to global pressure

Abstract

This study examines the status of corporate human rights responsibility as an emerging concern in Vietnam. The introduction of Doi Moi policy in 1986 has enhanced Vietnam’s economic development and integration into the global economy. On the one hand, the increased foreign investment and corporate activity that resulted from the transition of a closed and planned economy to a market-based system have improved human rights in Vietnam, particularly economic and social rights. On the other hand, the boom in business activity has significantly increased the risk and incidence of human rights violations by the business sector. This study used qualitative primary research and secondary research to identify and analyse the gaps in the existing response to business-related human rights challenges in Vietnam. The study found that a number of political, legal, economic, social and cultural barriers, both nationally and internationally, make it challenging to implement corporate human rights responsibility in Vietnam. In Vietnam, human rights are often viewed as a political issue that should concern government rather than private actors like corporations. Government policy and legislation have largely focused on encouraging investment rather than imposing human rights responsibility on corporations. Social and cultural norms typically support corporate social responsibility for moral or charitable reasons, rather than reasons related to human rights. The research demonstrated that the intersection of corporations with human rights issues in Vietnam operates largely through activities associated with corporate social responsibility. Corporate social responsibility is a concept introduced to Vietnam primarily through foreign corporations which require, for example, local contractors to implement labour standards. Although human rights violations by corporations are increasing, the current perception and response to corporate human rights responsibility in Vietnam are incomplete and lack political will and capacity. The issue is seldom discussed in business forums, government work, or academic studies. Similar to the situation in other developing countries like China, India, Cambodia, the international standards on business and human rights have little influence and application in Vietnam. There have been no explicit human rights policy, law or supporting programs that specifically address corporate human rights responsibility in Vietnam. Building on these findings, the thesis develops arguments as to why and how the situation can be changed in order to strengthen corporate responsibility for human rights in Vietnam. These arguments culminate in a detailed recommendation that the state implement a strategic framework on corporate human rights responsibility.