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Vietnam: VNCI (Private Sector Development Project) Vietnam Competitiveness Initiative

From 2007 to 2013, JC&A worked with the USAID project VNCI to assist in improving Vietnam’s investment environment for market-led growth in what became the largest simplification project in the world. We were the technical advisors on Vietnam’s Project 30, extending across 24 ministries, 63 provinces, and thousands of district and commune administrations. This entire project was based on our regulatory guillotine method. Scott Jacobs assessed in March 2007 the Prime Minister’s Master Plan for Administrative Simplification, and we recommended that the national reform program be redesigned, strengthened, and accelerated, recommendations accepted by the Prime Minister and the Government of Vietnam. We also helped support Vietnam’s ambitious national regulatory simplification program through several regulatory reform tools, including regulatory impact assessment, stakeholder consultation, and development of Vietnam’s first online regulatory registry of administrative procedures (see: http://csdl.thutuchanhchinh.vn/). Project 30 reform is completed.

Key Project Results: The reform revised or eliminated over 5,700 administrative procedures, with an estimated reduction in costs to enterprises and citizens of $1.4 billion/year due to streamlined and faster procedures. This was the largest administrative reform in Vietnam’s history. These cost reductions will make the lives of businesses and citizens easier as they invest, work, and do business. The cost-savings will, each year, release financial assets equivalent to 1.5% of 2009 GDP, which, under reasonable assumptions, may stimulate the creation of over 1 million new jobs in the enterprise sector over ten years. This reform is a key element of Vietnam’s global economic integration and competitiveness. Vietnam continues to publish its first electronic regulatory registry.

Vietnam, USAID under contract to DAI, 2007-2013.