USAID/Vietnam Competitiveness Initiative, Phase II (USAID/VNCI) Monthly Report for January 2012

The Prime Minister, Nguyễn Tấn Dũng, emphasized the need for stronger administrative reform efforts, urging the Ministry of Home Affairs to accelerate the implementation of the Master Program on State Administrative Reform for 2011-2020. This program aims to reduce costs and risks for private enterprise and citizens. The Master Plan for Regulatory Reform, a key initiative of the government, is being developed with the support of USAID/VNCI. The plan aims to change the mindset of leaders from "control" to enabling development, as discussed during a study mission led by Deputy Prime Minister Nguyen Xuan Phuc to Cairo and Paris in 2010. The plan will focus on broader and deeper institutional reform and policy coordination. USAID/VNCI supported the APCA team in introducing a successful public-private partnership (PPP) model for administrative reform in the customs area. The model, implemented by FedEx, has reduced custom clearance time for express shipments from 2-3 days to overnight service. This model demonstrates the potential for private sector and regulators to work together to bring value to all stakeholders. Regulatory Reform and Regulatory Impact Assessment (RIA) are also key areas of focus for USAID/VNCI. The organization has prepared training materials for a workshop on the principles of market economy and the role of government for APCA staff. USAID/VNCI also drafted a checklist for regulation review as part of preparation for the PERQ Report Semi-Annual Assessment on Regulatory Quality. The Provincial Competitiveness Index (PCI) is another key initiative of USAID/VNCI. The PCI diagnostic was presented at a workshop on "Macroeconomic policies, opportunities and challenges to local business environment" in Bac Lieu on January 5, 2012. The PCI report is being streamlined, with a focus on key changes in economic governance observed in the PCI 2011-FDI survey. Infrastructure financing and development via revenue bonds and public-private partnerships are also areas of focus for USAID/VNCI. The organization completed an initial screening report on the financial feasibility assessment for the new $500 million Hai Phong-Ha Long expressway and reviewed it with the MPI PPP TF. The assessment was presented to the PPP TF and ADB team on January 11, 2012, and is waiting for feedback from Quang Ninh province. Overall, the USAID/VNCI monthly report for January 2012 highlights the organization's efforts to support administrative reform and regulatory reform in Vietnam. The report emphasizes the need for continued support and coordination among government agencies, private sector organizations, and international partners to achieve these goals.