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Impact of Product-related Environmental Regulations in Asia: Descriptive Statistics from a Survey of Firms in Vietnam

Discussion Papers


by Etsuyo Michida, Kaoru Nabeshima and Yasushi Ueki
March 2014


This paper summarizes the main results of a unique firm survey conducted in Vietnam in 2011 on product-related environmental regulations (PRERs). The results of this survey are compared with the results of a corresponding survey of firms in Penang, Malaysia (Michida, et al. 2014b). The major findings are as follows. First, adaptation to PRERs involves changes in input procurement and results in market diversification, which potentially alters the structure of supply chains. This finding is consistent with the Malaysian survey result. Second, connections to global supply chains are key to compliance, but this requires firms to meet more stringent customer requirements. Third, government policy can play an important role in assisting firms to comply with PRERs.

Keywords: global supply chain, FDI, product-related environmental regulation, REACH, RoHS
JEL classification: F18, O14

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