Economic Law Reforms in the ASEAN Emerging Economies : A Review of Three Decades’ Paths

This book reviews the periodic changes in the legal policies of the late-developing ASEAN countries, often known as the CLMV countries (Cambodia, Laos, Myanmar, and Vietnam), in their continuous path toward globalization after the collapse of the socialist bloc. The book also identifies the characteristics of the legal reforms in their present stage guided by the common framework under the ASEAN Economic Community (AEC) moving toward 2025. The first stage is illustrated by the ASEAN-style utilization of foreign investments as reflected in all investment laws and policies of CLMV countries in the 1990s, which featured entry control (as “sticks”) and investment incentives (as “carrots”). Those controls and incentives were the means to induce investors to assume various performance requirements to contribute to industrial policies. The second stage witnessed a shift toward enhanced liberalization as an endeavor toward the WTO accession during the 2000s, as seen in the integrated investment laws that appealed for the national treatment of foreign investors. At the same time, those investment laws emphasized the substantive provisions (e.g., fair and equitable treatment and indirect expropriation) and procedural protections (e.g., provision of Investor–State Dispute Resolution mechanisms) as an appeal for stabilization of the investment climate. The third stage of legal policy, as evidenced by the recent amendments to the investment laws, is newly focused on environmental and social considerations, which seems to be an indispensable response to the increasing social protests against the negative impacts of investment promotion. Simultaneously, the means of administrative controls over investors, established in the first stage, are uniquely utilized for the realization of new goals. About This Book 6 Introduction 7 Contents 13 Editors and Contributors 15 List of Figures 17 List of Tables 18 1 Foreign Direct Investment Inflow and Investment Climate in ASEAN Least Developed Countries 20 1.1 Introduction 20 1.2 Comparison of Economic Size and Conditions in Four ASEAN Countries 22 1.3 Comparison of FDI Inflows Among ASEAN Least Developed Countries 23 1.3.1 Vietnam 25 1.3.2 Myanmar 29 1.3.3 Cambodia 32 1.3.4 Lao PDR 33 1.3.5 Summary of FDI Inflows 34 1.4 Issues on FDI Inflow Climate 35 1.4.1 Vietnam 35 1.4.2 Myanmar 35 1.4.3 Cambodia 36 1.4.4 Lao PDR 37 1.5 Comparison of Human Capital 37 1.6 Comparison of Governance 38 1.7 Other Surveys 39 1.8 Other Determinants for FDI 40 1.9 Conclusion 41 References 41 2 Policy Choices in the Economic Law Reforms of ASEAN Emerging Economies: A Comparative Perspective 43 2.1 Introduction 43 2.2 Diversification of International Investment Rules 47 2.3 Investment Laws of the CLMV Countries: Changing Phases of Development Policies 53 2.4 Legal Development in the Third Phase 57 2.5 Conclusion 66 References 69 3 Comparative Approach to ASEAN Competition Policy and Law 71 3.1 Introduction 72 3.2 Competition Laws in ASEAN 73 3.3 Legal Technical Assistance on Competition Law to ASEAN 81 3.4 Challenges of ASEAN Competition Policy and Law 86 3.5 Important Issues on ASEAN Competition Policy and Law 89 3.6 Concluding Remarks 94 References 94 4 Characteristics of Labour Disputes Resolution in the Four ASEAN Least Developed Countries 96 4.1 Introduction 96 4.2 Vietnam 98 4.3 Laos 102 4.4 Cambodia 104 4.5 Myanmar 106 4.6 Conclusion 109 References 111 5 Development of Consensual Dispute Resolution Procedures in Vietnam: An Aspect of Legal Development Support and the Development of ADR 112 5.1 Introduction—Development of Consensual Dispute Resolution Procedures 112 5.2 Vietnam’s Civil Procedure Code and Settlement 115 5.2.1 History Prior to the 2004 Civil Procedure Code: Settlements Under the Ordinance on Procedures for Settlement of Civil Cases and Other Laws 115 5.2.2 The 2004 Civil Procedure Code and Settlement 117 5.2.3 Settlements Under the 2011 Amended Code 119 5.2.4 Settlements Under the 2015 Amended Code 121 5.3 ‘Grassroots Settlement’ in Vietnam 123 5.3.1 ‘Grassroots Settlement’ and Its Context 123 5.3.2 Overview of the ‘Grassroots Settlement’ System 124 5.3.3 The Current Situation and Outlook 127 5.4 Vietnam's “Law on Mediation and Dialogue at Court” 128 5.4.1 Background History 128 5.4.2 Overview of the Mediation and Dialogue Law 131 5.4.3 The Current Situation and Outlook 137 5.5 Conclusion—Outlook on the ‘Rule of Law’ and Consensual Dispute Resolution Procedures 139 References 148 6 Asset Preservation Procedures and Compulsory Execution as Basic Framework for Debt Recovery in the ASEAN Late-Developing Countries 149 6.1 Introduction 149 6.2 Asset Preservation Procedures (Provisional Seizure Procedures) 150 6.2.1 Vietnam 151 6.2.2 Indonesia 153 6.2.3 Myanmar 154 6.2.4 Japan 156 6.2.5 Comparative Analysis 157 6.3 Execution Procedures 159 6.3.1 Vietnam 160 6.3.2 Indonesia 162 6.3.3 Myanmar 164 6.3.4 Japan 166 6.3.5 Comparative Analysis 167 6.4 Statistical Figures Related Enforcement in Vietnam and Indonesia (Figures About Myanmar Were not Available) 172 6.5 Conclusion 173 References 175 7 Status of the Reform of Laos’ Real Property System and a Perspective on Legal Development Support: A Fundamental Consideration of Phases 1 and 2 of the Lao Land Titling Project 176 7.1 Objective of this Paper 176 7.2 Outline of Phase 1 of the Lao Land Titling Project 178 7.2.1 Objectives and Details of the Project [6] 178 7.2.2 Details of the Support 179 7.2.3 Benefits, Costs and Risks of the Project 181 7.2.4 Summary of Results [7] 182 7.3 Outline of Phase 2 of the Lao Land Titling Project [8] 183 7.3.1 Project Background 183 7.3.2 Objectives and Details of the Support 184 7.3.3 Perspective on the Security of Land Tenure 186 7.3.4 Results 186 7.3.5 Issues 195 7.4 Situation of Subsequent Support Concerning Real Estate 197 7.5 Issues to be Considered 197 7.5.1 Relationship with ASEAN 197 7.5.2 Relationship with Judicial Conditions in Laos 198 7.5.3 Viewpoint of Legal Development Support 200 Notes 200 References 201 8 Foreign Direct Investment and Inflow Climate in Laos by Industry 203 8.1 Introduction 203 8.2 Investment Law in Laos 204 8.3 Current Conditions of Direct Investment Inflow in Laos 206 8.4 Mining Industry 207 8.5 Electricity Sector 212 8.6 Manufacturing Industry 217 8.7 Investment Climate for the Inflow of Foreign Direct Investment 218 8.7.1 Human Capital and Wages 219 8.7.2 Governance 220 8.7.3 Infrastructure 221 8.8 Conclusion 223 References 224 Index 225