Vietnam: Stronger Economic Policies and Governance

Since 2001, USAID/Vietnam has cooperated closely with the Government of Vietnam to help speed up the country’s desired transition to a market-driven economy. USAID provided the main supporting technical assistance for the U.S.-Vietnam Bilateral Trade Agreement (BTA). Implementing it effectively has brought a surge in investment and bilateral trade and full accession into the World Trade Organization (WTO), an important step to help Vietnam gain ground in global markets.  At the request of the Government of Vietnam, USAID has carried out a range of activities in support of an enhanced business environment.

Creating Conditions for Trade

USAID's Support for Trade Acceleration project focuses on legal reforms to liberalize Vietnamese markets, expand global trade, attract imports, and open up local investment opportunities. Since 2001, USAID has helped draft 93 laws, of which 69 have been adopted. More than 20,400 participants have attended 290 workshops, at which they received some of the 58,000 USAID-funded copies of reference materials supporting reform and economic growth. In 2008, USAID worked on 36 out of 39 trade-related laws in the National Assembly's 2007-2011 agenda. These include supporting trade-facilitating laws on the labor code, credit institutions, securities, standards, and arbitration. Others focus on consumer protection and regulations affecting imports, investment, and exports, such as intellectual property rights.

Encouraging Competitiveness

USAID's Vietnam Competitiveness Initiative project encourages active participation of Vietnamese and foreign enterprises in global trade. USAID assistance also supports the Prime Minister’s sweeping new initiative to reduce, simplify, or eliminate the costly and risky burdens on business/trade caused by tens of thousands of outdated administrative procedures and cumbersome regulations. Many are no longer necessary, far too complex and hostile to business; others continue to proliferate without quality controls or oversight. In 2008, the Prime Minister, with USAID assistance, developed a government-wide reform strategy and master plan for transforming legal documents at national and local levels to encourage greater cooperation between the public and private sector in seeking reforms. At the core is a transparent, web-based system to set up a national electronic registry of all laws, regulations, and procedures.  In addition, USAID has launched an initiative to develop new policies, legal frameworks and financing models to raise funding for better infrastructure funding via private capital markets, and create new jobs to further reduce poverty.

In 2008, USAID’s Provincial Competitiveness Index surveyed 7,820 enterprises on 54 factors of competitiveness. Six hundred enterprises attended 27 provincial diagnostic workshops voicing concerns about  issues hindering their growth, competitiveness and trading capabilities, including customs, export-import credit procedures, and enforcement of intellectual property rights.

Building Public-Private Partnerships

USAID’s private sector partnerships with MasterFoods and the World Cocoa Foundation increase efforts to advance cocoa production and trade in the Mekong Delta and the Central Highlands.  USAID’s Last Mile Initiative partnership with Microsoft, Intel, and Qualcomm promotes wireless connectivity and information technology at schools and community centers in 64 provinces, many in rural areas where cable lines did not reach.