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Transfer of ‘Western’ Institutions to a Transition Economy Context: Experiences from the Vietnamese Petroleum Sector

The article addresses possibilities and challenges in the transfer of ‘western’ institutions to a transition economy context. It examines how the transition economy context and attention to context can explain the outcome of a health, safety and environment (HSE) project that was implemented in the petroleum sector in Vietnam 1997–2011. This was part of a larger programme to convey insights and experiences from the Norwegian petroleum sector to petroleum-rich developing countries. Norwegian attention to context and Vietnamese adjustments of Norwegian experiences made it possible to enhance competence and systematic thinking on HSE in Petrovietnam (PVN) and to develop a more modern regulatory framework for HSE. The fact that PVN still holds a strong political position in Vietnam's market-oriented state socialism has facilitated this and ensured fast enactment of the regulations. Implementation of the new regulatory framework in the industry has been more demanding however. Control of information as a basis of power is important in explaining this. Moreover, the industry complains that enforcement of the regulations develop at a slower pace than norms and cognition in the part of the industry that competes internationally. The findings clearly underscore the notion that institutions may at best be imported, never exported.