Institutional Reform to Spur Economic Growth

4:33:45 PM | 8/19/2011

To successfully develop the economy in an open, innovative and competitive manner, Vietnam requires having a modern, effective and efficient institutional system which benefits the people, protects the environment, and promotes national prosperity. Complex regulations can lead to confusion and sometimes complicate the problem. Therefore, State organs focus on institutional reform to accelerate economic growth.
 
To give strength to the Project and lend support to the National Assembly and government agencies to better lawmaking activities, the Central Institute for Economic Management (CIEM) and the US Agency for International Development’s Vietnam Competitiveness Initiative (USAID,VNCI) coordinated in building the Programme for Enhancing Regulatory Quality (PERQ). The programme is made possible through the institutional support of the Government Office’s Administrative Procedures Control Agency, the Office of the National Assembly, the Academy of Policy and Development under the Ministry of Planning and Investment, the Vietnam Chamber of Commerce and Industry (VCCI), the American Chamber of Commerce (AmCham), and the European Chamber of Commerce (EuroCham).
 
The programme is expected to promote a model regulatory management system in Vietnam by providing government agencies, the National Assembly, citizens and businesses with the sources they needed to analyse and improve the quality of policies and legal documents. PERQ will help decision makers eliminate regulations that impose unnecessary costs on the community, impede innovation, and stifle competitiveness.
PERQ aims to support the Government in building a simpler, faster and better regulatory system that benefits policymakers, businesses and citizens, said Mr Michael Foster, acting director of USAID,Vietnam Mission. “PERQ provides resources to build capacity of public and private stakeholders to analyse economic policy options that positively impact rather than impede business, industry and daily lives,” he said.
 
Besides, PERQ will provide necessary support for the successful implementation of regulatory impact assessment (RIA), a quality control process by which the feasibility and effectiveness of proposed legislation is rigorously analysed and reviewed before they are approved and put into effect. According to a survey recently conducted by CIEM and USAID,VNCI, 43 percent of government officials had received training in conducting RIA and over 90 percent would like to receive further instruction. As a decision making tool, RIA provides objective assessment and evidence on the positive and negative effects of drafts or existing regulations.
Administrative procedure reform has been a part of institution policy as a means of improving people's lives. Dr Ngo Hai Phan, Director of the Administrative Procedure Control Agency (APCA) under the Office of Government, said: Vietnam should have a regulatory reform strategy and focus on implementing the task of administrative procedure reform as a regular task of administrative agencies established through enforcement guarantee.
 
Vietnam also needs to maintain necessary and legal administrative procedures which have great impact on the economy and business operations. At the same time, it is necessary to reduce and eliminate unnecessary and unreasonable administrative procedures to reduce costs to the State. Mr Phan said when there are good policies, it is necessary to provide training for policy makers, researchers and enforcers to enhance capacity. By doing so, policy enforcement is guaranteed and effected.
 
Through its portal, PERQ facilitates public comments on proposed legal documents, which is expected to help increase transparency, ease burdens on businesses and citizens, and maximize resources to support economic growth and job creation.
 
Nguyen Mai