USAID Vietnam Mission Director Joakim Parker has told Viet Nam News thatthe ongoing public-private collaboration in regulatory reforms has hadpositive impacts.
Q: What is your assessment of the regulatoryreforms that Vietnam has already undertaken, and what, in your opinion,are the main areas where further reform is required?
A: Vietnam has made significant progress in regulatory reform. Forexample, Project 30 has set a target to reduce by 30 percent theadministrative burden in Vietnam, and is viewed as a successfulprogramme that has resulted in greater transparency and a significantreduction of bureaucracy. This programme was highlighted by theOrganisation for Economic Cooperation and Development (OECD) as asuccess story and appreciated by the business community.
Recently, Vietnam has begun a new wave of regulatory reform under theflagship of Resolution 19, which instructs ministries and localities toreform administrative procedures and regulations to bring the nation'sbusiness indicators to the ASEAN 6 standard in 2015, and ASEAN 4 by2016. USAID is providing technical assistance in implementing thesesweeping reforms. USAID's Provincial Competitiveness Index is one of themost widely-regarded tools for measuring progress.
Regulatory reform is a continuous process, and a requirement for allcountries wishing to remain competitive. Effective regulatory reformrequires agencies to work together to reduce red tape and enhanceefficiency, an important challenge Vietnam is working on.
Q: What are the benefits that will accrue from greater private sectorparticipation in the regulatory reform process? Can you give somespecific examples?
A: Public-private dialogue canhelp achieve sustainable and meaningful reform of Vietnam's regulatoryframework - nobody knows the investment climate better than investors.It is very encouraging to see a robust dialogue and partnership betweenthe business community and government underway in Vietnam. The privateand public sectors are working together to design solutions that bestserve Vietnam's business environment and national competitiveness. Bothsides understand the importance of a transparent and inclusivepartnership that can drive inclusive growth and take advantage of thefree trade agreements that Vietnam is entering, including theTrans-Pacific Partnership (TPP).
A great example ofthe positive impact of the private sector working with the governmenthas been the impressive results of Resolution 19. Vietnam's businessesand citizens are already beginning to feel the benefits of the lightertouch mandated by Resolution 19. The practical improvements so farinclude a reduction in the time taken by businesses to pay taxes, whichwas achieved through concerted efforts of the Ministry of Finance andVietnam Social Insurance in amending laws and regulations. Businessesthat trade across borders and citizens starting a new business shouldsoon find it easier, faster and cheaper to do so as Vietnam implementsthe new Enterprise and Investment Law and new Customs Law, with addedimpetus from Resolution 19.
Q: Could you share with us some international experience in partnering with businesses on regulatory reforms?
A: The commitment of top leadership is important for success inregulatory reform. Vietnam has shown this in a practical way with theengagement of the prime minister and deputy prime ministers in keyregulatory reforms. Participation of the nation's business community isalso indispensable for success and the recent call by the PM forbusinesses and the media to participate and monitor administrative andregulatory reform is a very positive development.
Vietnam's business community has participated actively in Project 30with the establishment of an advisory council, and I hope this councilwill also participate in implementing Resolution 19.
The development and operation of the Advisory Committee on CommercialOperations (COAC) is a good example of the participation of businessesin regulatory reform. The committee is made up of private sectorrepresentatives working with US Treasury (equivalent to the Ministry ofFinance in Vietnam) and US Customs to improve trade facilitation. Theymeet regularly with leadership of US Customs and Treasury and relatedagencies to deal with complicated trade facilitation issues.
USAID is supporting the establishment of a similar mechanism with theVietnam Trade Facilitation Alliance in HCM City and we hope that thiswill grow into something as successful as the COAC in the US.
Q: What more can the Government do to enhance participation of the business community in regulatory reforms?
A: The Government can support the private sector's engagement inpublic policy making in a variety of ways, including demonstrating thatit is truly listening to, and not simply receiving feedback frombusinesses. The engagement of the Ministry of Finance and the businesscommunity in Project 19 has had a significant impact that is vital tosuccessful regulatory reform.
Q: What should Vietnamese businesses do to improve their competitiveness and trade efficiency in the current context?
A: Businesses benefit when they speak with one unified voice togovernment. It is important to support and encourage the private sectorto establish committees, working groups and form alliances together toenable them to work together to provide common solutions and designreforms.
Businesses can also benefit from staying updatedon new free trade agreements (FTAs) that Vietnam is negotiating orsigning, and learn about issues that will affect their own businesses ornew markets. Vietnamese businesses can learn about new rules in thenew-generation FTAs in order to improve their competitiveness. TheVietnam Textile and Garment Association and Vietnam Association ofSeafood Exporters and Producers are good examples of businessassociations that are actively involved in getting information aboutindustry issues that are being negotiated in TPP rounds.-VNA
Q: What is your assessment of the regulatoryreforms that Vietnam has already undertaken, and what, in your opinion,are the main areas where further reform is required?
A: Vietnam has made significant progress in regulatory reform. Forexample, Project 30 has set a target to reduce by 30 percent theadministrative burden in Vietnam, and is viewed as a successfulprogramme that has resulted in greater transparency and a significantreduction of bureaucracy. This programme was highlighted by theOrganisation for Economic Cooperation and Development (OECD) as asuccess story and appreciated by the business community.
Recently, Vietnam has begun a new wave of regulatory reform under theflagship of Resolution 19, which instructs ministries and localities toreform administrative procedures and regulations to bring the nation'sbusiness indicators to the ASEAN 6 standard in 2015, and ASEAN 4 by2016. USAID is providing technical assistance in implementing thesesweeping reforms. USAID's Provincial Competitiveness Index is one of themost widely-regarded tools for measuring progress.
Regulatory reform is a continuous process, and a requirement for allcountries wishing to remain competitive. Effective regulatory reformrequires agencies to work together to reduce red tape and enhanceefficiency, an important challenge Vietnam is working on.
Q: What are the benefits that will accrue from greater private sectorparticipation in the regulatory reform process? Can you give somespecific examples?
A: Public-private dialogue canhelp achieve sustainable and meaningful reform of Vietnam's regulatoryframework - nobody knows the investment climate better than investors.It is very encouraging to see a robust dialogue and partnership betweenthe business community and government underway in Vietnam. The privateand public sectors are working together to design solutions that bestserve Vietnam's business environment and national competitiveness. Bothsides understand the importance of a transparent and inclusivepartnership that can drive inclusive growth and take advantage of thefree trade agreements that Vietnam is entering, including theTrans-Pacific Partnership (TPP).
A great example ofthe positive impact of the private sector working with the governmenthas been the impressive results of Resolution 19. Vietnam's businessesand citizens are already beginning to feel the benefits of the lightertouch mandated by Resolution 19. The practical improvements so farinclude a reduction in the time taken by businesses to pay taxes, whichwas achieved through concerted efforts of the Ministry of Finance andVietnam Social Insurance in amending laws and regulations. Businessesthat trade across borders and citizens starting a new business shouldsoon find it easier, faster and cheaper to do so as Vietnam implementsthe new Enterprise and Investment Law and new Customs Law, with addedimpetus from Resolution 19.
Q: Could you share with us some international experience in partnering with businesses on regulatory reforms?
A: The commitment of top leadership is important for success inregulatory reform. Vietnam has shown this in a practical way with theengagement of the prime minister and deputy prime ministers in keyregulatory reforms. Participation of the nation's business community isalso indispensable for success and the recent call by the PM forbusinesses and the media to participate and monitor administrative andregulatory reform is a very positive development.
Vietnam's business community has participated actively in Project 30with the establishment of an advisory council, and I hope this councilwill also participate in implementing Resolution 19.
The development and operation of the Advisory Committee on CommercialOperations (COAC) is a good example of the participation of businessesin regulatory reform. The committee is made up of private sectorrepresentatives working with US Treasury (equivalent to the Ministry ofFinance in Vietnam) and US Customs to improve trade facilitation. Theymeet regularly with leadership of US Customs and Treasury and relatedagencies to deal with complicated trade facilitation issues.
USAID is supporting the establishment of a similar mechanism with theVietnam Trade Facilitation Alliance in HCM City and we hope that thiswill grow into something as successful as the COAC in the US.
Q: What more can the Government do to enhance participation of the business community in regulatory reforms?
A: The Government can support the private sector's engagement inpublic policy making in a variety of ways, including demonstrating thatit is truly listening to, and not simply receiving feedback frombusinesses. The engagement of the Ministry of Finance and the businesscommunity in Project 19 has had a significant impact that is vital tosuccessful regulatory reform.
Q: What should Vietnamese businesses do to improve their competitiveness and trade efficiency in the current context?
A: Businesses benefit when they speak with one unified voice togovernment. It is important to support and encourage the private sectorto establish committees, working groups and form alliances together toenable them to work together to provide common solutions and designreforms.
Businesses can also benefit from staying updatedon new free trade agreements (FTAs) that Vietnam is negotiating orsigning, and learn about issues that will affect their own businesses ornew markets. Vietnamese businesses can learn about new rules in thenew-generation FTAs in order to improve their competitiveness. TheVietnam Textile and Garment Association and Vietnam Association ofSeafood Exporters and Producers are good examples of businessassociations that are actively involved in getting information aboutindustry issues that are being negotiated in TPP rounds.-VNA
