Institutional Reform Needs to Promote Roles of Civil Society Organisations and Anti-corruption

 

According to statistics, as of 2014, more than 900 foreign non-governmental organisations (NGOs) have established relations with Vietnam and nearly 500 NGOs are carrying out development and humanitarian projects in the country.

 

Domestic private economic sector and foreign investment sector, including non-profit social enterprises and pro-society investors, play an important role in the development of Vietnam. Civil society organisations may have a more significant and positive role by approaching closer to the aspirations of the people and promoting accountability.

 

The Government of Vietnam has been accelerating inclusive institutional reform to ensure sustainable economic growth and uphold just and democratic society. Institutional reform will need to include the strengthening of the role of civil society organisations. According to NGO representatives, Vietnam needs to facilitate civil society organisations, including the Vietnam General Confederation of Labour and professional associations, to play their roles as social and environmental protection organisations, monitor operations of economic entities and ensure responsibility performance of such entities.

 

"Vietnam should continue to promote opinion-collecting mechanisms and enforce relevant laws and regulations. The Government of Vietnam has issued sub-laws and circulars to facilitate, coordinate and supervise civil society activities. This is an appropriate time to harmonise, revise and complete these laws to enable civil society organisations to support information access and involvement of citizens in public/community life under the Constitution. The Ministry of Planning and Investment has directed the review on the enforcement of Decree 93 on foreign aid use. Once being implemented more effectively, the decree will help poverty reduction and sustainable development in Vietnam,” said a foreign NGO representative.

 

Many characteristics of a centrally planned economy still exist although Vietnam has undergone 30 years of economic transition from a centrally planned economy to a market-oriented economy. For instance, State business entities receive individual preferences. Wrongdoings and corruption in private sector and governmental agencies occur at both central and local levels. According to foreign NGO representatives, public property must be publicly owned. The fact that the privatisation of achievements is not controlled while risks are shared with the community will lead to social injustice and tensions. The fight against corruption performed via a comprehensive cross-checking system is highly appreciated by foreign NGOs.

 

So far, foreign direct investment (FDI) in Vietnam is often seen as a solution rather than a part of a balanced and sustainable development strategy. Some localities attract foreign investment by rescheduling, exempting and reducing taxes and land rents and other incentives in excess of limits. Although incentives may bring in higher economic growth but it also has hidden risks to the economy, health and life of the people and the environment.

 

Besides, according to foreign NGOs, the Government of Vietnam should strengthen legal mechanisms and ensure the enforcement of current regulations on land, health, labour and environment. Labour protection policies must be consolidated. The Vietnam General Confederation of Labour needs to be supported and assisted to promote negotiations, collective bargaining agreements and employee interests. Businesses must be legally responsible to their improper treatments to employees.

 

In addition, according to foreign NGOs, the amended Law on Enterprises recognised the role of social enterprises. However, the law needs to better categorise the types of social enterprises, including non-profit social enterprises. The Government of Vietnam must speed up SOE reform and create a fair business environment for all economic sectors, including SOEs, private sector and foreign investment sector. The Government also needs to issue policies on corporate social responsibility and build a transparent legal framework. It also needs to step up institutional reform in land administration.