Grading Regulators: The Impact of Global and Local Indicators on Vietnam's Business Governance

Abstract

International indicators are widely used as diagnostic tools for global governance. For the developing world, with scarce resources and complex social problems, indicators can help businesses, donors, and policymakers identify issues, tailor solutions, and measure impacts. This Note studies the dynamics between global and domestic indicators in Vietnam, particularly the ways they influence Vietnam’s policy processes. It finds that while global indicators have advanced the notion of competitiveness and made it a priority of the national government, sub-national indicators—here, a ranking of Vietnam’s provinces—play a significant role as a more tailored and focused tool to motivate internal competition for pro-business reforms. This Note therefore confirms the dominant viewpoint that global indicators influence a country’s development agenda, but concludes that this effect is even more pronounced in the presence of robust local indicators.

Keywords: Indicators, Governance, Vietnam, World Bank