Receiving bankruptcy law into Vietnam

With assistance from foreign donors, countries in developing East Asia are rapidly replacing bureaucratic regulations with statutory norms mainly derived from international trade protocol (eg, WTO and AHA). Using imported legal norms, Vietnam enacted a Law on Business Bankruptcy (LBB) (Luat Pha San Doanh Nghiep) in 1993. By any measure, the [*2] transplanted bankruptcy principles have failed to take root. During the East Asian Economic Crisis (1997-2001) when non-performing business loans dramatically increased, cases heard by the bankruptcy courts in Vietnam declined. This article investigates the ways Vietnamese ideological, cultural and structural conditions have influenced the reception of the LBE. It is concluded that legal transfers are shaped more by political, economic and legal interactions, than by 'chance and prestige'.