B-WTO Programme: Helping Strengthen Vietnam’s International Integration

 

In the opening remarks, Mr Nguyen Cam Tu, Vice Minister of Industry and Trade (MOIT), B-WTO Steering Committee Chairman said, “International integration has brought positive outcomes for the social economic development, but also and challenges. Right after becoming the WTO official member, the Government of Vietnam has called for the international donors’ support for managing international economic integration and transition to a market economy. In response to the Government’s request, the Australian Department of Foreign Affairs and Trade (DFAT) and the UK Department for International Development (DFID), through the Beyond WTO Program, has supported the Government to manage economic integration and transition to a market economy after accession to the World Trade Organization”.

 

The B-WTO Program, Phase 1 (from January 2007 to March 2008) supported the development of Government Action Plan (GAP), and the action plans of agencies and provinces, as well as pilot a multi-donor trust fund model to support the implementation of GAP.

 

Building on results of Phase 1, the Beyond WTO Program Phase 2 has been implemented from September 2009 to March 2014 with the purpose of implementing priority policy actions from the Government’s Action Plan. In the Phase 2, B-WTO supported 48 projects. The Program beneficiaries include 28 Departments and Institutes of 8 Ministries and agencies, 7 business associations, 4 provinces, businesses and farmers.

 

For more than four years, B-WTO supports have helped to learn international experience to improve the quality of integration related policies and regulations, to strengthen the public participation in policy making process, to broadly share and disseminate researches and analyses results.

 

From perspective of Mr Truong Dinh Tuyen, Former Minister of Trade, the key focus of B-WTO Program is strengthening the market economic status and improving business environment. This focus helps to solve three issues, including (i) creating resource allocation mechanism and a highly competitive business environment; (ii) mitigating adverse impacts of integration on vulnerable groups; (iii) effectively managing the integration process. This will be addressed through a strengthened market economy institution and enabled business environment in Vietnam. Only when the economy is functioned on market mechanism basis, resources can be allocated more efficiently and a fair competitive environment can be created.

 

Regarding component of “Capacity building for managing and coordinating integration”, Mr Vo Tri Thanh, Deputy Director of Central Institute for Economic Management said, “It is essential to involve “the whole government” in planning and managing integration. This idea requires (i) raising awareness about new features of global business, and integration commitment – a pillar in development strategy – institutional reforms and economic restructuring; (ii) Capacity building for implementing integration commitments and impact assessment (linked with planning, formulating and improving policies). Focus on relevant ministries/agencies and more challenging issues (e.g. state owned enterprises reform, competition; intellectual property rights); (iii) Completing integration coordination arrangement and inter-agency cooperation to address integration related issues; (iv) Developing an efficient monitoring and evaluation system including high level of independence of evaluation, authority and resources for monitoring. Annual report on integration related.”

 

According to Mr Michael Wilson, Minister Counsellor, Development Cooperation, Mekong and Regional, DFAT, “Signing up to the WTO was the first step, albeit a very important one, in making integration work for Vietnam’s people – raising incomes, improving competitiveness, moving up the value chain - these were some of the challenges that lay ahead. B-WTO helped bring about policy, regulatory and institutional reform and helped boost the benefit gained from reforms by: (i) building an evidence base to support legal, regulatory and institutional reform with improved access to international experience; (ii) building a better understanding of the parts of the economy that would come under pressure from further reform through broadening public consultations, understanding and support for the reform process; (ii) building capacity in the institutions that would be at the forefront of the economic integration challenges. The cumulative impact of the program is that Vietnam has a better understanding of the challenges and opportunities of economic integration and stronger capacity to deal with these challenges. This understanding can support an ongoing reform process that, if followed through, will see Vietnam continue to grow in strength and stature. This is a good outcome for Vietnam, obviously, but it is also a good outcome for Australia and the region more broadly.”

 

Sharing achievements and lessons learned, Vice Minister Nguyen Cam Tu said, “During the implementation process, there are successes and also lessons learned, which will be valuable experience for future technical support programs”.

 

It is 7 years since Vietnam signed up to the WTO, which is not too long period but very significant for the international integration process and the transition to a market economy. In this period, B-WTO Program has contributed to this process. B-WTO results contributed to implementation of GAP priorities, including raising awareness about WTO committeemen’s, improving legislations, policies and institutions, comprehensively developing factors of market economy, strengthening agriculture and rural development, improving international economic integration effectiveness. Generally, the B-WTO Program support has been relevant with the Government priorities and achieved the immediate objective, which is a good base for realizing the goal of “strengthening government’s capacity to manage the integration of Vietnam into the global economy and the transition of Vietnam to a socialist market economy”.