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Dinh Vu

Economic Sector

Last updated: Wednesday, September 19, 2018


Seeking Solutions for Planning Law

Posted: Wednesday, April 26, 2017

The Law on Planning has an impact on almost all basic construction sectors. In order to provide insights into the issue, the Ministry of Planning and Investment (MPI) hosted a workshop on the Draft Law on Planning in Hanoi to collect opinions of insiders and specialists for improvement.

Deputy Minister of Planning and Investment Dang Huy Dong said that Vietnam is on the path to a higher level of development and full integration with the world; thus, changing the approach of planning construction and management is an urgently objective and practical requirement. Being fully aware of this, the Standing Party Central Committee (11th term) issued Resolution 13-NQ/TW dated January 16, 2012 on guidance on drafting of the Law on Planning. The Prime Minister issued Decision 1193/QD-TTg dated July 22, 2014 on task assignment to lead agencies in charge of drafting laws and ordinances under the National Assembly’s Legislative Programme. And, the Ministry of Planning and Investment was tasked to lead the drafting of the Planning Law.

Deputy Minister Dang Huy Dong added that planning must be made a leverage for economic growth, a facilitator of economic restructuring, growth model change and improvement of productivity, efficiency and competitiveness on the basis of respect for market rules and in the context of very strong globalisation.

Though assigned very clear and important tasks, Vietnam’s planning sector has in practice shown a lot of limitations and lagged behind socioeconomic progress. Mr Vu Quang Cac, Director of Planning Management Department under the Ministry of Planning and Investment, said, planning has been made in a great number but the quality is not as good as expected as it is not actually based on real resources, demand and feasibility. Furthermore, planning is incoherent, overlapping or even contradictory. Meanwhile, planning, appraisal, approval and implementation is loosened. For example, regional planning along the National Highway 1, Southern Phu Yen - Northern Khanh Hoa regional planning and Southern Ha Tinh - Northern Quang Binh regional planning cannot define the scope and resources for deployment. Let alone, each province has its own planning intentions. According to the law, six economic regions in the country must have separate planning. Each province in these regions must also develop plans based on their master plans. Paradoxically, in some cases local planning has been approved while corresponding master planning has not been approved, he added.

Moreover, unimplemented planning is also very common, resulting in waste and loss of budget, breaking economic system planning and weakening the exploitation of local potential. For example, forest planning, agricultural product planning and real estate planning inadequacies have caused negative impacts on the economy. In real estate, practical planning is too few, said Dr Huynh The Du, Lecturer of the Fulbright Economics Teaching Programme. For instance, Phu My Hung Urban Area - a typical example of effective planning - has a planned area of 2,600 ha, not 409 ha as now, he added.

Dr Pham Sy Liem, Deputy Director of the Vietnam Construction Association, said, the Planning Law must be considered a breakthrough step in institutionalisation and applied as soon as possible in Vietnam.

He noted that the new Law on Planning will completely eliminate ridiculous planning such as rice exporter planning, public notary planning, village-based wine production planning and a cigarette wholesaling network. If we can do this, we will strictly abide by the law of what belongs to the market returns to the market. The Government will just serve as an enabling element and facilitator of market development. Liem explained.

According to the Ministry of Planning and Investment, 95 laws and ordinances and 85 decrees regulate planning at present. Overlapping has brought about 19,200 different plans in the country and the number keeps rising.

Remarking on this, Mr Vu Quang Cac said that the Law on Planning submitted to the National Assembly for approval at the forthcoming third meeting session not only aims at comprehensive planning reform, but also, with the elimination of product planning, will eradicate a lot of sub-licenses contrary to the market economy principle. This approach is expected to make a breakthrough in investment, production and business administrative procedures, thus helping the nation develop to a new high.

Anh Phuong

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