Adoption of ISO9001 through Supply Chain in Vietnam: Impacts of FDI and Product-related Environmental Regulation

Discussion Papers

No.497

by Hakaru Iguchi, Toshi H. Arimura and Etsuyo Michida

March 2015

ABSTRACT

The objective of the present study is to examine the determinants of ISO 9001 certification, focusing on the effect of Product-related Environmental Regulations on Chemicals (PRERCs) and FDI using the answers to several questions in our Vietnam survey conducted from December 2011 to January 2012. Our findings suggest that PRERCs may help with the improvement in quality control of Vietnamese firms. If Vietnamese manufacturing firms with ISO 9001 certification are more likely to adopt ISO 14001, as well as firms in developed countries, our results indicate that the European chemical regulations may assist in the reduction of various environmental impacts in Vietnam. In addition, we found that FDI promotes the adoption of ISO 9001. If FDI firms in Vietnam certify ISO 14001 after the adoption of ISO 9001, as in the case of Malaysia and the developed economies, FDI firms may also be able to improve environmental performance as a result of ISO 14001.

Keywords: ISO 9001, FDI, Product-related Environmental Regulation, Vietnam
JEL classification: F18, Q56, D22

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