Planned Development Outcomes
The Restructuring for a more Competitive Vietnam (RCV) Project has been designed to support implementation of selected elements of the Government Master Plan on Economic Restructuring (MPER, 2013-2020). MPER goals supported by RCV are:
- Increased national economic competitiveness;
- Accelerated growth in labour productivity, employment and incomes;
- Improved transparency in business regulation and reduced corruption.
Key results expected from the program by December 2016 are:
- Reductions in business compliance costs (following approval of revisions to the Enterprise and Investment Laws);
- Increase in the quantity and quality of the cases handled by the Vietnam Competition Agency;
- Concrete actions taken by GoV to begin restructuring the rice value chain at national and central level; and
- Policy recommendation resulted in GoV, CPV’s strategic documents dealing with economic restructuring including restructuring of the rural economy.
The program will help the GoV achieve these objectives via three targeted components and a flexible fund to respond to emerging priority issues linked to the economic restructuring program. The three components and planned outputs are:
1. Enhanced business competitiveness and transparency.
This Central Institute for Economic Management (CIEM)- Ministry of Planning and Investment (MPI) led component will result in:
- More business friendly Enterprise and Investment Law approved by National Assembly (in late 2014, with key implementing regulations approved by the GoV by 2015);
- Diagnostic report on impediments to private sector development and to implementation of international economic commitments submitted to GoV (by end 2015);
- Quarterly and annual reports on progress and issues with MPER used by GoV to sustain pressures to implement the MPER, and to adapt MPER priority actions to meet changing circumstance; and
- At least two high quality analytical reports on priority macro-economic and broader economic development issues submitted by the MPI to the national leadership and widely discussed in mass media (by 2016).
2. Restructuring competition institutions in line with international commitments.
The intended outputs of this Vietnam Competition Agency (VCA)- Ministry of Industry and Trade (MOIT) led component are:
- Enhanced evidence base, information and skill to enforce competition policy;
- Enhanced policies, systems and support to minimize the negative impact of anti-dumping actions and other trade remedies; and
- Expanded early warning systems on potential trade defence cases.
3. Restructuring the rural economy to increase value added. This Institute for Policy and Strategy of Agriculture and Rural Development (IPSARD)- Ministry of Agriculture and Rural Development (MARD) led component will result in the following outputs:
- Analysis and reports contribute to improved institutional structure for rice value chain collaboration in Dong Thap supported by representatives of all stages of the rice value chain;
- Reports on modelling of impacts of rice value chain restructuring (including proposed reforms to paddy land reservation policies, and proposed reforms to increase competition in rice exports in line with international commitments) submitted to Minister, Ministry of Agriculture and Rural Development (MARD); and
- Policy dialogue on rice value chain restructuring issues reflected in media coverage and public awareness of issues and policy options.
Timeframe and Resource Commitments
The initial pilot phase of the project will be implemented during 2 years 6 months from June 2014 to December 2016. The Government of Australia will provide grant financing of AUD 2,500,000. The GOV will provide, through the implementing agencies, the counter funding of AUD 135,000. Considerable in-kind contributions (mostly in the form of people’s time) are expected from the private sector, media, business associations, research institutes, and the broader community.
Delivery Approach and Key Partnerships
CIEM will be the lead agency responsible for overall project delivery. MPI will appoint a Project Director (PD) to oversee the program. CIEM, VCA and IPSARD will be responsible and accountable for effective and efficient delivery of component outputs as discussed above. Component implementing agencies will appoint Component Directors (CDs). CIEM will be responsible for the overall program management and coordination, and for the implementation of the Flexible Fund to respond quickly to emerging policy issues.
A Project Coordination Committee (PCC) will be established and meet at least every six months to review progress and implementation issues. PD, CDs and GOA will participate in the PCC. The PD and GOA may decide to invite other observers (such as representative of Senior Advisory Group (SAG), National Assembly (NA) or CPV) if that is seen as advancing the Project objectives.
GOA will be involved in program planning and strategy decisions, including approval of the Operational Manual (OM), key program personnel in the Project Support Unit (PCU) (including the Senior Program Coordinator-Economist (SPC-E), the SAG, and decisions on the use of the Flexible Fund.
The local SAG and the international Senior Technical Advisor (STA) will play an important role in planning, policy dialogue, communications and quality control over program activities.