Corruption and the Business Environment in Vietnam: Implications from An Empirical Study

Asia & the Pacific Policy Studies, Volume 6, Issue 2, pages 222-245 (2019)

Crawford School Research Paper Forthcoming

24 Pages Posted: 12 Jun 2019

See all articles by Daisuke Maruichi

Daisuke Maruichi

Columbia University

Masato Abe

United Nations Economic and Social Commission for Asia and the Pacific (ESCAP)

Date Written: April 18, 2019

Abstract

This paper examines the effect of corruption on the business environment in Vietnam. Our survey of firms conducted in Vietnam suggests that corruption is perceived as the most impactful business obstacle for their operation. It was also found that corruption has a significant negative association with the overall satisfaction of the business environment in Vietnam, which supports the hypothesis that corruption has a “sand the wheel” effect on firms' business activities. Given these results, it is urgent that the Vietnamese public authorities accelerate efforts in mitigating this issue. Although this paper sheds light on the importance of corruption, it would be useful to conduct follow‐up studies examining corruption and its impact in more detail. Such studies could be conducted in segments that most severely suffer from corruption according to our survey, that is, medium‐sized enterprises in the hotel/restaurant and construction sectors, Hanoi based, and Vietnamese owned firms.

Keywords: business environment, business obstacle, corruption, firm perception, Vietnam

Suggested Citation

Maruichi, Daisuke and Abe, Masato, Corruption and the Business Environment in Vietnam: Implications from An Empirical Study (April 18, 2019). Asia & the Pacific Policy Studies, Volume 6, Issue 2, pages 222-245 (2019); Crawford School Research Paper Forthcoming. Available at SSRN: https://ssrn.com/abstract=3402774

Daisuke Maruichi (Contact Author)

Columbia University ( email )

3022 Broadway
New York, NY 10027
United States

Masato Abe

United Nations Economic and Social Commission for Asia and the Pacific (ESCAP)

76 Rajadamnern Nok Ave
Bangkok, 10200
Thailand

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