20.04.23 Seite 1MPI-GTZ Small and Medium Enterprise Development Programme (SMEDP)

Doris Becker & Le Duy Binh

April 2009

Sub-national PPD Initiatives in Vietnam

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Fast transition to a market economy with strong reforms since the 90es, which led to 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.

Country Context: Vietnam

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

Consultation

Techniques

RIA Methodolo

gy

Technical Advice on EL and IL

Press Campaig

n

PPD AT NATIONAL LEVEL

PPD AT PROVINCIAL LEVEL

Inter-active PPD

methods

Facilitation

Technical Inputs

Training for BAs

Early 2005

July 2005:

EL and IL passed

July 2006: EL and IL became

effective

Early 2007: First provincial

PPD

May 2009: SMEDP ends

Capacity Bldg.

Topic of PPD: law implementation issues,

tax, credit, customs

Topic of PPD: Enterprise Law and Investment Law

Dec. 2008PPD

Guideline

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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.