Role of Supply Chains in Adopting Product Related Environmental Regulations: Case Studies of Vietnam

Discussion Papers



March 2012


This paper shows some findings how product related environmental regulations, especially those that relate to management of chemical substances affect firms in Asia. Interviews were conducted for some firms in Vietnam that are part of global supply chains of electrical and electronic, furniture, and plastic industries. The global supply chains with MNC lead firms have helped local firms in developing countries to adopt technical PRERs overseas. On the other hand, indigenous firms that do not belong to global value chains might face hurdles to keep exporting to the regulated markets. PRERs could become a barrier for firms that attempt to the regulated markets without supports by MNC lead firms.

Keywords: environment, chemicals, regulations, firms, trade
JEL classification: O44, Q56, Q58, F23

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