Transcript Service Market - Facilitation by GTZ Vietnam

Sub-national PPD Initiatives in Vietnam
Doris Becker & Le Duy Binh
April 2009
17.07.2015
MPI-GTZ Small and Medium Enterprise Development Programme (SMEDP)
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Country Context: Vietnam
 Fast transition to a market economy with strong reforms since the 90es, which led to
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a boom of private enterprises.
The state is slowly reducing its influence while associations assume a new role in
society.
Public consultation is mandatory by law but inadequate in implementation.
There is still considerable mistrust between the state and private sector.
Associations are “mushrooming”, have no consistent structures and limited capacity
to engage in policy advocacy.
Decentralization is taking place at fast pace but provincial associations are weak.
At provincial level Public Private Dialogue suffered from severe methodological and
institutional constraints, typically consisting in top-down monologues by state officials
to the business community.
Public sector regards private sector as the beneficiary or target of their development
policy rather than a partner in developing policies and strategies.
Objective: Strengthening business associations and state entities
to engage in policy advocacy on a basis of mutual trust, hereby
(i) improving the quality of laws and regulations when they are made; and
(ii) improving the implementation at provincial level.
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Particularities of the PPD - Vietnam
 PPD initiatives started at the national level due to strong reform
initiatives (EL) which were in dire need of this type of instrument.
 Rather than introducing PPD as a stand-alone instrument, it was
included in the “mix of instruments” selected by GTZ SMEDP to
improve governance in the area of private sector development:
 Provincial competitiveness index (business information
transparency, proactivity of provincial leadership…)
 Regulatory Impact Assessment
 BusinessPortal (reduction of entry costs, increasing
transparency)
 The PPD process itself is accompanied by the development of
other tools such as PPD guideline, training for BizAss and public
sector stakeholders.
 Strong participation of the mass media in the process (both at
national and provincial level)
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Two PPD processes under GTZ – MPI SMEDP- Vietnam
Consultatio
n
Techniques
RIA
Methodology
Technical
Advice on
EL and IL
Press
Campaign
Topic of PPD: Enterprise
Law and Investment Law
PPD AT NATIONAL LEVEL
Early
2005
July 2005:
EL and IL passed
July 2006:
EL and IL became effective
Early 2007: First
provincial PPD
Dec. 2008
PPD Guideline
May 2009:
SMEDP ends
Training for BAs
PPD AT PROVINCIAL LEVEL
Topic of PPD: law
implementation issues,
tax, credit, customs
Interactive
PPD
methods
Facilitatio
n
Technical
Inputs
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Capacity
Bldg.
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Results and challenges - Vietnam
Major results:
 Awareness of public and private sector stakeholders about the benefits of PPD
has been improved.
 Private sector takes bolder and more professional initiatives in policy dialogues
with the Government. Capacity regarding content and methodology in both
sectors has been improved.
 Results from PPD at national level are well taken into account by the
governments.
 PPD format which emphasizes the interaction between the two sides is
introduced and accepted.
 Ownership of the PPD process was successfully transferred to the private sector
(in some provinces).
 Tools and methodology on PPD have been developed and disseminated.
Challenges:
 It is still a long way to go for the institutionalization of PPD;
 Broad-based improvement in the quality of PPD remains a challenge.
 The link between PPD at provincial and national levels is missing or weak.
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