Hai Phong Steps up Administrative Procedure Reform

In 2006 - 2010, Hai Phong’s economy and society continued to develop towards sustainability, with GDP rising 11.32 percent a year. Especially from 2006 to 2008, economic growth was 12.76 percent per year, 1.5 times higher than the national average. In 2010, the city's GDP expanded 10.96 percent. The city also saw many targets completed 1-3 years ahead of schedule, like cargo throughput at seaports, budget revenue and social investment. In 2010, cargo throughput at Hai Phong ports exceeded 35 million tonnes, and State budget revenue totalled VND37,265 billion, up 27.5 percent from 2009.

 

Thus, the economic scale increased significantly. Compared with 2005, the city’s GDP expanded 1.7 times by 2010 and GDP per capita rose 63.4 percent to US$1,742. The city’s GDP accounted for 4.4 percent of the country's total (compared with 3.6 percent in 2005). Economic structure was positively shifted, with the contribution of industry, construction and service sectors in GDP rising from 87 percent in 2005 to 90 percent in 2010, of which the service sector made up for 53 percent from 50.8 percent. By 2010, Hai Phong managed 10 official development assistance (ODA)-funded projects with a total investment capital of US$614,898,495 (equivalent to VND12,174.99 billion) from international donors like the World Bank (WB), the Bank of Japan International Cooperation (JBIC), and the Governments of Finland and South Korea. Foreign direct investment (FDI) increased rapidly year after year, with US$197.8 million in 2006; US$431.37 million in 2007; US$1,615.45 million in 2008; US$125.9 million in 2009; and US$70 million in 2010. The slump in 2009 and 2010 was caused by the global economic crisis.

 

 

In the annual provincial competitiveness index (PCI) rankings carried out by the Vietnam Chamber of Commerce and Industry (VCCI) in collaboration with the Vietnam Competitiveness Initiative (VNCI), Hai Phong, which ranked in the "average" group in 2007 and the "relatively low" group in 2008, rose to the "good" group in 2009, ranking 36th with a total score of 57.57. In 2010, it ranked 48^th with a score of 54.64.

 

Understanding that the success of the business community is the development of the city, the important and primary objectives the city has set out are to improve the investment and business environment, improve its competitiveness and facilitate companies to develop and do business.

 

To do so, first of all, Hai Phong focuses on simplifying and publicising administrative procedures. Known as a locality which effectively applies one-door administrative procedure mechanisms, all districts and State organs at all tiers follow this mechanism. Nine municipal departments, 13 districts and 36 communes are applying a modern, interconnected one-door model and almost 50 percent of State administrative units are applying one-door mechanism with competent authorities in charge. Hai Phong stands at the top group in the country in terms of public administration reform and ranks third nationwide in completing the revision and simplification of administrative procedures ahead of schedule under the Government-backed Project 30.

 

Besides, the city also attaches much importance to dialogues between authorities and businesses. Every year, the City People's Committee hosts many dialogues and meetings with the business community. Dialogues and meetings are organised by topics, attendants or industry, like meeting on solutions to ease access to stimulus packages for tourism companies or dialogues with shipbuilders and garment companies to resolve difficulties and boost production. Every week, leaders of the municipal People's Committee take field trips to local companies and host meetings at the Office of Hai Phong People’s Committee to listen to difficulties and proposals from enterprises. Every day, the Steering Committee receives and resolves problems and proposals from enterprises, and arranges meetings with them in weekday afternoons. Then, the People’s Committee and its subordinated departments can understand the difficulties and needs of businesses to tune up policies to support companies to develop and make a profit.

 

Besides, the city provides information about investment promotion activities for local companies in various forms like brochures, leaflets, DVDs, investor manuals and websites. Typically, in 2010, the People’s Committee publicised the Prime Minister’s important decisions on city planning on its websites in popular languages.

In addition, Hai Phong always promotes the role of unions and associations. Currently, the city is home to more than 20 general associations, business associations and business clubs, including VCCI - Hai Phong Branch, Small and Medium Enterprise Association, Real Estate Association, Young Entrepreneurs Association, and Hai Phong Wounded Soldier and Veteran-led Business Association. Such associations have significantly contributed to promoting production and business activities in the city, functioned as the bridge to connect investors with Hai Phong City, and served as an effective information channel covering the City and its policies in their scope of operations.

 

Achievements in the past time are admirable, but they still mismatch local potential. Hai Phong needs to do better in the coming time.

 

First, the city will carry out the second phase of the Government's Project 30: Continue promoting propagation activities and raising awareness of civil servants (especially CPV members), industry leaders, business community and the people about the purpose and significance of administrative procedure reform to create a consensus of authorities, people and businesses in this work. The city will have commending and punitive measures for the performance of civil servants.

 

Second, based on the success of the one-door administrative mechanism applied to business establishment, tax code and deal registrations, the city will consider expanding the mechanism to other aspects like investment licensing. To do this, the investment licensing authority will be strongly decentralised to shorten the time for granting investment certificates to small foreign-invested projects and adjusted projects.

 

Third, the city will build a mechanism to strengthen the coordination of State management agencies, avoid replication and enhance the sense of responsibility of each agency and each civil servant. It will renovate investment promotion activities by professionalising processes; applying information technology to investment promotion activities and investment certificate registration; and building information and data systems to serve investors.

 

Fourth, the city will continue publicising space planning, land use planning, district planning, and industrial zone planning on local mass media and websites.

Fifth, the city will maintain frequently direct dialogues and meetings with local businesses; intensify monitoring of investment projects to support investors in speeding up progress and resolving difficulties, as well as correcting activities of companies violating investment regulations. It will revoke investment licences of projects without significant progress.