More Reforms Needed for Vietnam to Effectively Compete Globally

3:20:12 PM | 6/5/2020

Strong reform efforts at all government levels in Vietnam deserve to be recognized. The results of these efforts are explicit and tangible. In the future, provincial governments should consider focusing on promoting stronger, more substantive and deeper regulatory reforms to facilitate business operation and growth of domestic and local investment by foreign firms,’ said Mr. Michael Greene, USAID/Vietnam Mission Director  in an interview with Vietnam Business Forum. Lan Anh reports.

In Vietnam, the PCI is considered a voice of the private sector on the Vietnamese business landscape, which has brought about remarkable changes over time. Can you share your thoughts on the impact of the PCI index?

PCI is one of USAID’s most effective initiatives in Vietnam. I highly appreciate the effective cooperation and implementation by VCCI. They have made very good use of their status as the connector between provincial governments and firms to bring about transformation and benefits to domestic and foreign firms operating in Vietnam, especially domestic private firms. To date, more than 140,000 domestic and foreign invested firms have participated in the PCI surveys. The fact that provincial authorities wait for the PCI results and findings to diagnose local governance to make adjustments has significantly contributed to promoting the role and voice of the private sector in Vietnam. Annual PCI reports have become instrumental in conveying the collective voice of firms, big and small, to governments at all levels on areas that are important to business development, even sensitive areas such as informal charges and transparency.

We know that the PCI has been exported to more than 10 countries. Could you share your thoughts on seeing the adoption of the PCI approach outside of Vietnam?

In Vietnam, VCCI and USAID cooperated to develop PCI and released the first PCI report in 2005. In 2006, a similar initiative was introduced in Cambodia, and in the following years, several other countries implemented projects modeled after PCI with support from international donors like UNDP, AusAid, and the World Bank.  USAID provided assistance to five projects outside Vietnam: Indonesia (2007), El Salvador (2009), Kosovo (2011) the Philippines (2013) and most recently, Burma (2018). To date, 16 countries have implemented a model similar to PCI to measure economic governance based on firm perceptions. The adoption of PCI-like programming outside of Vietnam is inspiring. It really shows that this initiative has impact and inspires change.

As Vietnam continues to integrate itself into the global economy and further its development, what do you think provincial governments should do to meet the new requirements of this process?

Strong reform efforts at all government levels in Vietnam deserve to be recognized. The results of these efforts are explicit and tangible. In the future, provincial governments should consider focusing on promoting stronger, more substantive and deeper regulatory reforms to facilitate business operation and growth of domestic and local investment by foreign firms. Regulatory, judicial, legal and labor reforms are necessary for Vietnam to effectively compete globally. Vietnam should continue to encourage participation of businesses and citizens in the policy making process to ensure that the reforms are sustainable and transformative.

Thank you very much!

Nguồn: Vietnam Business Forum