Project 30: The Prime Minister s Master Plan to Simplify Administrative Procedures

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1 Project 30: The Prime Minister s Master Plan to Simplify Administrative Procedures Enhancing Competitiveness and Prosperity in Vietnam Dr. Jim Winkler, Project Director USAID/Vietnam Competitiveness Initiative Seminar on Improving Service Delivery Council of Ministers, Kingdom of Cambodia June 22,

2 Transition Economy in Vietnam CURRENT: Admin-centric FUTURE: Market-centric Legalistic approach Internally focused, protected economy. Insideout SHIFT Economc, analytical approach Competitive, outward oriented, market-driven economy. Outside-in

3 Transition to Market Economy: From Compliance to Competition Laws and rules of general applications are transparent and predictable Impartial, effective and uniform implementation of laws Regulations and licensing criteria are no more burdensome than necessary to serve a legitimate regulatory interest Effective, impartial and independent court system

4 THE CASE OF VIETNAM 800 XK/Đầu Export/capita người (USD (USD - left bên axis) trái) NK/Đầu Import/capita người (USD (USD - bên left axis) trái) GDP/đầu GDP/capita người (USD (nghìn - right đồng axis) - bên phải) W T O A F T A B T A

5 Source: Global Competitiveness Report, 2010 Stages of Development

6 Viet nam Source: Global Competitiveness Report, 2010

7

8 Source: Global Competitiveness Report, 2010 Vietnam

9 Vietnam and China Institutions Innovation Infrastructure Business sophistication Macroeconomics stability Market size Health care and primary education Technological readiness Higher education and vocational training Financial market sophistication Labour market efficiency Goods market efficiency Source: Global Competitiveness Report, 2010

10 Vietnam in Comparison with Thailand and Malaysia Institutions Innovation Infrastructure Business sophistication Macroeconomics stability Market size Health care and primary education Technological readiness Higher education and vocational training Financial market sophistication Labour market efficiency Goods market efficiency Source: Global Competitiveness Report, 2010

11 Applications for patents under PCT

12 Application for patents under PCT

13 The Provincial Competitiveness Index 2009

14 PCI 2009 Map

15 PCI 2009 Ranking

16

17 PCI 2009, Median province

18 Institutional Risks in Vietnam: PCI 2009 Time Costs and Regulatory Compliance ( ) Indicator Measures % of firms spending over 10% of their time dealing with bureaucracy or bureaucratic regulations Minimum Median Maximum Correlation with previous year N/A * 0.62* 0.67*

19 Impact of Good Governance for Wealth/Growth

20 Vietnam s Transition to Market Economy Transforming the policy and institutional framework is still incomplete for Vietnam s emerging market economy: 1. Greater focus on market-based solutions through economic policy cost-benefit analysis and regulatory impact analysis (RIA) 2. Regulatory intervention should address market failures 3. Stronger domestic private sector formation; formalization of private enterprises and economy (reduce informal sector) 4. Balance of centralized and decentralized roles in governance 5. Civil service and regulatory framework not yet adapted to market economy requirements 20

21 Regulatory Management Job Creation, Enterprise Growth, Improved Competitiveness, Increase in Prosperity Sustainable Social Equity Economy Sustainable Development Natural Environment, Social Inclusion, Renewable Resource, Local Safer Communities, Reduce Pollution Environment Protection of Citizens

22 Institutional Set Up & Future Regulatory Management Regulatory Environment Job Creation, Enterprise Growth, Improved Competitiveness, Increase in Prosperity Regulatory Institutions Stock of Issuance of Existing new Regulations Regulations Sustainable Social Equity Economy Sustainable Development Natural Environment, Social Inclusion, Renewable Resource, Local Safer Communities, Reduce Pollution Environment Protection of Citizens

23 The government and the prime minister will concentrate on pushing up administrative reforms. Prime 23 Minister Nguyen Tan Dung

24 Goals of regulatory reform programs worldwide: Better policy results at lower cost Australia: Canada: Minimum effective regulation Smart Regulation European Commission: Less action, but better action (2001) Less red tape = more growth (2005) Germany: Japan: Netherlands: Sweden: United Kingdom: 24 United States: Make the State leaner -- streamline bureaucracy Freedom in principle, regulation as an exception Competition, deregulation, and regulatory quality Better regulatory quality Fewer, Better, Simpler The American people deserve a regulatory system that works for them, not against them

25 Project 30: Simplify the Stock of Regulations Political Leadership: Active political commitment by Prime Minister and government with new structure and process for reform New Structure and Processes: A new independent Special Task Force to manage the reform and conduct independent reviews and recommendations to government An Advisory Council with active public-private participation and advice Extensive mass communications and outreach to business and civil society groups Rapid Regulatory Review With Results: Designed to rapidly count and review a large number of existing regulations against simple filters: Is it needed? Is it legal? Is it business or citizen friendly? Transparency: Internet- based software for public participation and input; electronic National Database of Administrative Procedures with over 5,700 APs. Results: Will eliminate regulations not needed and simplify regulations that are too complex; Will sustain and build momentum for continuous process of improving regulatory quality. M&E system for results 2

26 Project 30 Organization Prime Minister Monitoring and reporting National Assembly Minister OOG Minister OOG VCCI CIEM YBA AMCHAM EUROCHAM Export Associations ACAPR Advisory Council for Administrative Procedures Reform Secretariat Inventory input Deputies STF Special Task Force office, staff equipment staff Minister OOG OOG OOG Standing Committee Group Group Group 26 DO ORS USAID, IFC, UNCTAD, DFID, DANIDA, UNDP support 24 Ministries & Agency 5 Cities 58 Provinces

27 Civil Society and Businesses participation in Project 30 Advisory Council Secretariat 14 Working Groups 3 STF Tax WG Telecoms & IPR WG Banking WG Customs WG Communications Outreach to Civil Society & Businesses Over 20 Business Chambers and Associations and over 250 Individual Companies 27

28 Businesses and citizens (individual approach) 3 + Ministries (24) Cities and Provinces (63) Project 30 Special Task Force National Database Advisory Council on Adm. Procedure Reform (ACAPR) 13 members of ACAPR 14 Working Groups RECOMME DATIO S PACKAGES Government of Vietnam 2

29 Project 30 Timeline in Vietnam PREPARATIONS Office of Government Supervision and Coordination by Prime Minister s Special Task Force (central agency) I VE TORY 24 Ministries, 5 cities, 58 provinces REVIEW Ministry and Provincial level procedures Advisory Council established Advisory Council Working Groups Operating E-REGISTRY developed ational Database for access and transparency of inventory and public comments 29

30 Project 30: Roles and Responsibilities of Private Sector Identify the most problematic APs for review Identify and notify STF about any missing APs, forms, administrative application templates, requirements or conditions in the inventory Participate in 14 working groups on key sectors or topics (e.g. banking, land, labor, customs, infrastructure, etc.) Organize and implement reviews of related APs with support from STF and review forms provided by STF (forms 3, 3a, 3b) Provide factual information about APs, forms, administrative application templates, requirements, conditions that cause difficulties for business and public life. Communicate objectives and mission of Project 30 broadly in order to enhance the support and engagement from businesses and public 3

31 Project 30: Achievements To Date Largest administrative reform program in the world operating at 4 levels of government: 22 Ministries, 5 cities, 57 provinces, over 700 districts, 10,000 communes 87 state agencies engaged in inventory and review process and consultations National Database of Administrative Procedures with over 5,700 APs and 9,000 legal documents on-line launched on October 26, Minimum 30% simplification in Aps and 30% reduction in costs announced by Prime Minister: 1 st package of 258 administrative procedures approved on May 28, 2010, estimated $300 million per year in cost compliance; Final reform will save estimated $1.5 billion per year in cost compliance 3

32 Project 30: Achievements To Date Media actively engaged through regular briefings and information dissemination Large private sector involvement: over 20 associations and over 250 companies actively engaged in 14 working groups to provide feedback and recommendations OOG playing active role in policy coordination to reduce the costs and risks of doing business in Vietnam A building block for RIA coordination like OMB in U.S. and Better Regulatory Executive in U.K. for supervision of the flow of new regulations New Decree on June 1, 2010 established permanent central Agency for Controlling Administrative Procedures in Office of Government 3

33 National Database of Administrative Procedures Over 5,700 Admin Procedures Over 9,000 regulatory documents Over 100,000 dossiers of APs JOIN HANDS TO REFORM ADMINISTRATIVE PROCEDURES O E electronic database of administrative procedures at 4 levels of government in Vietnam relating to individuals and businesses O E effective tool to enhance the transparency of the regulatory system by strengthening information access for the public, and minimizing time and costs for state management agencies and businesses O E official and single contact point for fastest search of administrative procedures QUICK, SIMPLE, PRECISE search tool Search full-text Search by correct phrase or all words Advanced search (by administrative agency, area, sector/industry, implementing subject, etc.) Multiple UTILITIES and FUNCTIONS Print information on administrative procedures in part or in whole Download forms, administrative forms, legal documents Provide multi-link of individual administrative

34 Thank you