Table of Contents

INTRODUCTION......................................................................................................

CHAPTER 1: Theoretical basis and current situation of street trading in Vietnam....

1.1 Street trading definition.........................................................................................

1.2 Classification and characteristics of street trading.................................................

1.3 Current status of street trading in Vietnam.............................................................

CHAPTER 2: Theoretical basis of legitimacy in institutions.....................................

2.1. Regulative pillar....................................................................................................

2.2. Normative pillar.....................................................................................................

2.3. Cognitive pillar.....................................................................................................

2.4. The legitimacy of the three institutional pillars.....................................................

CHAPTER 3: The legitimacy of street trading in Vietnam.......................................

3.1. Regulative pillar of street trading..........................................................................

3.2. Normative pillar of street trading..........................................................................

3.3. Cognitive pillar of street trading............................................................................

3.4. The legitimacy of street trading..............................................................................

CONCLUSION
 INTRODUCTION
Street tradings are familiar image to all of us so far. We can see street vendors
everywhere, from rural to urban areas. The street trade has become familiar, and
deeply ingrained in people's subconscious, it is not only recognized in economic
terms but also as a unique cultural feature, reflecting the daily life of the society.

However, along with the development of society and the economy, street
trading becomes a difficult problem for policymakers when it is both a contributing
factor to the economy but at the same time also causing serious problems about the
environment, and social security, .... This has created two views on whether or not
street trading should be banned.

To clarify this, the research team conducted an analysis of street trading

activities through three institutional pillars, thereby determining whether street
peddling is legit or not.
CHAPTER 1: Theoretical basis and current situation of street trading in
Vietnam

1.1. Street trading definition

Street tradings are a concept to refer to people's trading and trading activities
related to sidewalks and alleys in densely populated areas (not at markets, where
officially planned). Street vendors will move continuously in an area, without a
specific location and location, can encounter street vendors anywhere.

At Point a, Clause 1, Article 3 of Decree No. 39/2007/ND-CP on individuals

conducting commercial activities independently and regularly without business
registration issued by the Prime Minister with the following contents: “Street trading
means activities of buying and selling without a fixed location, including the receipt
of books, newspapers, magazines and cultural products from traders who are
allowed to trade in these products in accordance with the law.”

1.2. Classification and characteristics of street trading

 Classification

Street trading can be divided into two main groups of activities: Fixed groups
(with houses combined with public spaces - sidewalks) and mobile groups (without
house facades, trading right in the heart of the city). sidewalks, sidewalks, alleys in
residential areas).

In Article 2, Regulation No. 46/2009/QD-UBND “Regulations on the

management of street vendors in the area of Hanoi City” clearly states: “Peddler is
an individual engaged in commercial activities on a single basis. independently,
regularly, without business registration, without a fixed place of business and not
called a "trader" in accordance with the Commercial Law.
 According to Article 3, Decree No. 39/2007/ND-CP, street selling includes
commercial activities:

- Street-trafficking (street-trafficking) is buying and selling activities that do

not have a fixed location (peddler, peddler or both peddler and peddler),
including the receipt of books newspapers, magazines, cultural products of
traders who are allowed to trade these products in accordance with the law
for peddling.
- Small business is the buying and selling of small items with or without a
fixed location.
- Selling snacks is the activity of selling gifts, cakes, food, and drinks with
or without a fixed location.
- Transshipment is the activity of buying goods from other places on each
trip to sell to wholesalers or retailers.
- Performing other services: shoe shine, lottery ticket sales, lock repair, car
repair, parking, car wash, haircut, painting, photography and other services
with or without a fixed location.
 Characteristics

Business items of street trading are quite diverse, from stationery, books to
food, tobacco and food services. There are also a few other things like groceries,
clothing, hats, etc., which are also quite popular and account for a certain proportion
of the total.

However, unlike fixed business objects, mobile traders mainly focus on two
types of goods: food and tobacco. This type of goods is in demand for door-to-door
service, especially in alleys far from the road, or in crowded living places but the
supply capacity is limited.
 Street vendors are characterized by being able to serve on a large scale, but
that is why it is very difficult to gather them.
1.3. Current status off street trading in Vietnam

Vietnam is a country in the process of development, so it still carries with it

the small farming practices of the majority of the people and there are habits that try
to be ingrained in people's subconscious that are not easy to give up. become a
feature of most Vietnamese cities. Vietnamese street food has its own characteristics
that are difficult to mix with other places. That is why street vendors have negative
effects on the development of urban areas in Vietnam, such as causing traffic jams,
environmental pollution, and hindering urban planning. But it is also undeniable
what street vendors bring. Because those selling things are generally cheap and
affordable for people with low incomes. As mentioned from the beginning hawker
activities go hand in hand with the development of urban areas. In which, in
Vietnam, there are two big cities, Hanoi and Ho Chi Minh, with a large percentage
of street vendors. And some other cities also have trading activities.

It is true that street vendors are everywhere and the number of people
operating in this profession is relatively large. According to statistics of the
Department of Food Hygiene and Safety, Ministry of Health (2007), our country
now has 10,771 communes, wards, 671 districts, communes and wards all have
street vendors and the operation of this trading force is very difficult. manage. In
urban areas of Vietnam, especially large cities, the sidewalks are the living land of
hundreds of thousands of street vendors and many other things. It can be seen that
hawker activities take place on the sidewalk, the roadside is so active that the main
function of the sidewalk, which is to serve pedestrians, is also affected. Street
vendors often violate traffic safety, obstruct the circulation of vehicles and one thing
that people operating in this field often violate is trading on prohibited roads, places
where hawking is prohibited. Major cities have now deployed signs banning street
vendors in many streets. However, the situation of street vendors, messy markets,
and sidewalk encroachment are recurring. In these cities, although on many roads of
the city there are signs banning street markets, encroachment on sidewalks, trading
curbs, banning littering, etc., but they are not obeyed by the people. This situation is
getting worse and worse.

CHAPTER 2: Theoritical basis of legitimacy in institutions

2.1. Regulative pillar

The regulative pillar includes a number of regulatory processes in the form of

rules, monitoring and sanctioning of violative activities, intended to influence the
future behavior of individuals and organizations (Scott, 2008). Thus, these
management processes involve establishing and establishing rules, complying with
conformity, and administering behavioral sanctions either through reward or
punishment. This pillar uses legal sanctions as the basis for legitimacy, based on
instrumental logic. In this pillar, businesses are part of society and must follow rules
to avoid sanctions (Hoffman, 1999). For example, to meet compliance with
environmental regulations, corporations can adopt new technologies to control
pollution; To meet tax law requirements, nonprofit businesses may hire accountants
(DiMaggio and Powell, 1983).

In the regulative pillar, institutions clearly play a role of regulation in

restricting and encouraging behavior through regulation, monitoring, and explicit
sanctions. The regulatory process operates on mechanisms of general application or
formalization and designation for specific actors, such as the police or the courts.
DiMaggio and Powell (1983). Recent studies in economics emphasize regulatory
costs. Agency theory emphasizes the cost and difficulty of accurately monitoring
contract signing sessions, so it is necessary for a third party to play a neutral role to
monitor the activities of the two parties. partner. Economists consider this an
important function of the state.

According to North (1990), coercive power, deterrence, and practicality are

central elements of the adjustment pillar. These elements are guaranteed to be
implemented by reasonable rules (formal or informal) and formal legislation. In
some cases, actors have to accept the rule system without necessarily believing that
the rules are fair or reasonable. North (1990) also pays special attention to possible
issues such as “execution by agents with useful functions affecting results” (p. 54),
i.e. third parties. not neutral. In one way and another, attention to the regulatory
aspects of institutions generates renewed interest in the role of the state: as rule-
maker, implementer, and enforcer.

According to North (1990), the regulative pillar is the most common form.
This view is consistent with objective social reality, and at the same time ensures
absolute rationality. Accordingly, in the adjustment pillar, individuals are motivated
to operate and decide according to effective logic, bringing high benefits. Through
reward and punishment norms, the state affects the activities of individuals and
organizations in the future to ensure the general development of society.

2.2. Normative pillar

The normative pillar “creates expectations in a certain direction, while at the

same time setting her and enforcing them in social life” (Scott, 2003, p. 880). The
legitimacy of these pillars is shaped by social norms. Businesses adhere to
normative codes of ethics or conform to standards and regulations developed by
trade industries, professional organizations, and universities. The normative pillars
allow enterprises to study the dynamics of change and social action; policy issues;
power and conflict.

In the normative pillar, standard systems include both values and rules. Where
values are the expected outcomes, the rules are the directions for performing the
activity, and the standard systems are the basis for defining the goals (e.g. winning
the game or making a profit). In addition, the pillars also indicate appropriate
methods of action that will enable the business to achieve its goals (for example, the
concept of fair business practices).

In this form, some values and rules may apply to all members or only to
specific individuals and cases. Such specialized values and rules are referred to as
corporate roles. Berger and Luckmann (1967) emphasize the central role of firms as
follows: “All institutionalized behavior plays a role. Thus, the role is shared in the
regulation of task assignment. As soon as individuals are deemed to be performers
of the role, their actions can be enforced” (p. 74).

The normative pillar emphasizes the extent to which beliefs and social norms
influence the institutionalization process. For first-generation theorists like Parsons,
rules and values are the foundation of development. However, later regime followers
emphasized the effects of cultural rule systems on social stability.

2.3. Cognitive pillar

Cognitive pillars refer to the precise cognitive frameworks that impact

individual performance in practice (Scott, 2008). In particular, the accuracy
originates from the orthodox cultural traditions and customs. Cultural legitimacy
models are largely imitated, understood, and implemented within the framework of
imitative homomorphic change. The cultural awareness of institutions is the main
distinguishing feature of neo-institutionalism in sociology and organizational
studies.

To understand or explain any action, the analyst must consider not only
objective conditions but also the subjective perceptions of individuals. Constituent
rules play a primary role in the institutionalization of an organization. These rules
relate to the ability to develop standards in processes that are “unique and concrete
experiences … that ensure both factual and objective significance” (Berger and
Luckmann, 1967, p. 39). . Such processes are applied to ideas, facts, and cognitive
elements. When rules are established and recognized, individual behavior is often a
cognitive reflection of specific external actions.

The cognitive pillar perspective emphasizes the cohesion of individuals and

groups in social life. Instead of the view that businesses are part of a natural order,
theorists emphasize the cognitive pillar of origin, maintainability, and explainability
of problems between actors in different businesses. social activities. This view of
theorists is normative, directional, guiding the standard of cognitive action, and at
the same time emphasizes the importance of social identity in perceiving behavior of
each individual. Accordingly, Meyer and Rowan (1977) and DiMaggio and Powell
(1983) emphasize the possibility of the impact of belief systems and cultural
contexts on the perception of individuals and businesses. Businesses try to change to
achieve a structure that is homomorphic to the current cultural model through
cognitive mechanisms.

2.4. The legitimacy of the three institutional pillars

The Three Pillars play an important role in directing appropriate actions to

develop businesses. These three pillars provide three “other related but distinct legal
bases” (Scott, 1995, p. 47), which are the theoretical foundations that enable
businesses to perform analysis and make informed decisions. determined (Grosse
and Trevino, 2005). Not only that, the three pillars also provide special support
methods, contributing to stabilizing social life.

Legitimacy is one of the important conditions promoting the process of

exchanging resources and making changes that are homomorphic to the current
social model. However, from an institutional point of view, legitimacy is not a
commodity owned or exchanged but a condition that reflects cultural affiliation,
normative support, or compliance with laws. or relevant laws. Legitimacy is directly
related to an enterprise's ability to connect cognitive frameworks, rules, or norms.

In particular, these three pillars can draw different conclusions about the
legitimacy of a business. In it, the governing pillar view determines whether the
enterprise is legally established and is operating in accordance with relevant laws
and regulations. The standard pillar emphasizes ethical obligations, which can take
positive action stemming from mere legal requirements.

CHAPTER 3: The legitimacy of street trading in Vietnam

3.1. Regulative pillar of street trading