III
Journal of Philippine Development Number46, VolumeXXV,No.2, SecondSemester1998
-q
Public
Administration
I_I
-q
number
of
Reform
in a Transitional Economy: Case of Vietnam Quart
Xuan
Dinh*
INTRODUCTION
Vietnam
(VN) is a transitional
nations
which
planned
command
towards
a market
December
is successfully economy
machinery
reform which
macroeconomic the legal
program
gains: in 1996'
reforms
brought
6th
there
many
inflation
fell from
on removing
is still
positive
Vietnam assistance to absorb
of the
Party
in
VN has implemented reform
of state
between
had
been
investment,
renovating
These
in the
Trade
Asian
promised
US$8.5
consultative Foreign
Nations
Organization
(WTO). and there
as undefined billion group
direct
to
businesses
authorities,
as well
five
is hoping
for private
hurdles
to 4.5
for the past
(APEC) and
place
brought
mid-1980s
of Southeast
local and central
only 28 percent.
efforts
of 8.2 percent
Cooperation
(ODA) in various
'Dr, Quan Xuan Dinh is currently formerly an assistant professor _SRV, Office of Statistics, Hanoi,
improving
results.
400 percent
a difficult
administrative
development
The reform
price controls,
foreign
Area (AFI_A) and World
is confusion
framework.
a centrally
one.
a step-by-step
of the Association Economic
Vietnam
unclear
able
with
from
Congress
process),
and GDP grew to an average
Asia-Pacific
However,
He was
the
encouraging
etc., have
join ASEAN Free Trade because
together focusing
VN is now a member
been
with
market
over a decade.
management,
(ASEAN) and
had
began
stretched
system,
impressive
are
its transition
to a socialist-based
economy
The economic
years.
managing
and one of a small
1986. Since the Doi Moi (renovation
an economic
percent
economy
legal
in official meetings,
investment
with the Asian Development Bank Institute of economics at the University of Saigon, 1997
but (FDI)
in Tokyo.
3]6
JOURNAL OF PHILIPPINE DEVELOPMENT
commitment
stood
35 percent
has
at more
been
The
first
place.
This
distributed This
as shown
in turn institutional
system rather
a public
than
economic
Despite
noble
to the market that
task of public
administration
requirement
to sustain
by the Asian
crisis.
This paper
will now just most
populace, and
(PAR), which
especially
depend
by "internal
in the
legal
financial matters"
the transition
process
institutional
setting
there
VN faces
is becoming
debates
and
created
reforms
during process"
and early
between
the
an imperative
its "renovation
1980s
strife"
on a clear division
region,
economic
"political
of the transition
the Party and the government.
economies
(LSS). 2
incomplete
disputes.
that VN started
the sustainability greatly
Survey
in the new environment
of the Soviet bloc in the late
Thus,
put in
is unevenly
imperfect
in a conducive
VN's institutional
marred
service.
were
to the
to execute
problems
It maintains
however
"conservatives." between
growth,
1987-1997.
was
solve reform
examines
due to the collapse which
and
activities,
by
tasks.
for the general
support
Standard
imbalances,
geared
about
as a period
but
impediments
for economic
managerial
goals
Living
by major
be seen
standards
macroeconomic
administration and
is brought
components
living
latest
in VN can only flourish
can deliver
the decade
about
include:
frameworks
and
better
1997 but only
skills" in the public
institutional
by Vietnam's
which
situation
of Doi Moi may
and
brought
is brought
transformation and
(1987-1997)
has
in December
and managerial
macroeconomic
growth
billion
The present
capacity
decade
the main
US$29
invested.
the lack of "absorptive when
than
1990s,
"reformers" to market
economy
of labor and a proper
WitI_ the Asian
crisis
is an urgency
to carry
but and
balance
still paralyzing out
further
reforms. The first section their
context
section that
a brief
and the approaches
identifies
and analyzes
the prescription
without
gives
an efficient
overview
done
during
problems
for economic administrative
of VN's institutional the past decade.
and challenges.
reforms capacity
cannot
The second
Evidence
be effectively
to manage
reforms, suggests carried
the change.
2SRV,_'LivingStandard Survey 1992-1993," Office of Statistics, Hanoi, 1994
out
DIHN: VIETNAM'S PUBLIC ADMINISTRATIONREFORM
OVERVIEW
OF THE PUBLIC
Vietnam's the
and
process
There
two waves
mid-1980s.
adjustment
the
legal regulatory state
institutions.
difficulties
cadre
and
context
(economic,
on research
political
for legitimacy
the legal-rational and
approach.
procedures
world
and
the
of
to economic
building
of basic
framework.
aims
This
through
IN VIETNAM
by the crisis
of institutional
to the outside
infrastructure wave
was influenced
of institutions
opening
The second
REFORM
The first wave focused
of the Party's
the
development,
are
reforms.
rejuvenation
It reflected
ADMINISTRATION
renovation
and administrative)
317
at perfecting
second
and
the
functioning
ongoing
wave
and
staffing
of reforms
of
encounter
is stalled.
Context Vietnam socialism the
was unified
and
period
the
of boat
and famines
that
the mounting
for independence.
were
people, struck
disbelief
While was
struggle
1975-1985
migration
in 1975. Legitimacy
sharp
in socialism
VN was also
the collapse
decline regions
isolated
process theories, market
during
the
books
to learn
in the Soviet Union At that
time,
the bureaucracy war,
reforms
and
were
forced
launched
by
of Cambodia,
it
to end decades
of
Back
then,
of the Chinese bodies,
were
process
Europe,
to the
economic
reforms.
reliance
on
life. (During
the
were decentralized.)
1970s
and
early
no
Perestroika
with exclusive
of socioeconomic
organizations late
there
on "the transition
results
all aspects in the
of
for development.
the party
of the Party.
47 ministerial
institutional
scale
high inflation
of its invasion
and experiences
to manage
economic
as an instrument
from except the crises in Eastern
were
of
array of economic and social reforms. and economic concerns led to the Doi Moi
and the positive
there
results
massive
in living standards,
because
6th Congress
materials, system"
slow growth,
on
of North VN. This was aggravated
of the Soviet bloc that
isolation and embark on an Considerable internal discussion
was based
Yet, the economic
disappointing:
some
of the regime
1980s
Partial but
were
counterproductive. Started The tempo
in 1987, the Doi Moi reform
of change
was
accelerated
aimed
after
1989
at stabilizing with more
the economy. economic
and
318
JOURNAL OF PHILIPPINE DEVELOPMENT
financial
reforms
that
establish
policies
that aimed
Investment
The Land
banking,
Civil Code
many
100 laws covering business,
in 1.996, were
passed
a broad
Many
(SOEs)
sector
small-scale
were sold, state
sector
First
to close,
the last being During
of areas
such as
the promulgation
the
changes.
transition
to the
1988-1993
institutional
elections Party
catering
of public
composition
and the preparation
both
through
other
itself. services
The retrenchment people
in the
and
reduced
and
political
(PAR) administrative
administration
of the
and
reform
6,000. 3
Reform
Doi Moi covers
wave
and
over 800,000
to around
the role of the Party
and
retail,
affected
Administration
and the state-owned
to reorganize
or lay off their workers.
from 12,000
emphasizing role
in trade,
of SOEs
The first
were abolished
encouraged
between
Wave of Public The
was
enterprises
forced
the number
reform
(PAR) focused
the legal-rational
National
Assembly
of a national
approach,
(NA), the
on i.e.,
holding
of
PAR program.
and the Rule of Law The first reform
"market
economy
experiences
in 1990 aimed
with
to learn
socialist
at preparing
orientation."
from, the intense
debate
the Rule of Law." To justify
to rational-legal
values,
several
by the people and
the
and
definition
such
"a state
governed
system
with
for a
no successful the
the move from socialist
were used,
for the people," of market
were
was "on how to emphasize
within
formulas
a new justification
As there
role of the Party
law,"
and to
The Foreign
in 1993.
range
etc., including to support
1987 - 1991, all subsidies
enterprises
people,
times,
in 1988 and revised
contracts,
control
economy.
economy. During
the
about
commercial
from state
market
and was revised
Law was enacted
the Doi Moi decade,
market
to free the economy at encouraging
Law was prepared
in 1996.
of the
helped
socialist
as "a state
of the
by the rule-oforientation
as a
state in which "the people are rich, the country is strong and a society is civilized." Law is seen more and more as a channel to resolve conflicts and the bureaucracy's
arbitrariness
and
to redress
grievances.
aWorld Bank, "Economic Report on Industrialization and Industrial Policy," Washington, D.C. Report No 14645, Oct. 1995, page 105.
DIHN: VIETNAM'S PUBLIC ADMINISTRATION REFORM
The justification administration
i
of VN's strategy
Exists to serve the people)
the people
2.
Functions
3.
Is able, as the executive
in a state and
through
such
ownership
rights
The
new through
Assembly
was another
range voices
and
The first which
minorities emerged
7 percent
in 1992.
fielded
663
represented
legislative
meeting presented
4SRV,
It was
in 1992,
was
authority,
in November
over 30 percent.
exercise
the
first
their
step
of elections
the
were conducted
"screened party
a channel
were
Thus,
considering
for some
to 20 percent positions
elite" to express
was
and
included
wide
independent during
Public
the
in the 1997 election where
women
a new generation
and
of leaders
body of the people vested a growing
which
role as seen
approved
only
with constitutional. during
8 out
the
10th NA
of 12 ministers
by the government.
"National
to
ranks.
plays 1996
approaches
The new role of the National
members
for 450
from the parliamentary
manifested
decentralization, people
allowing
This was increased candidates
of
the rule of law. The Party obtained
that
of nonparty
government
centralism"
where
number
thereby showing
Today, the NA, the highest and
in place
interests.
and for
of division
and other related
system
A limited
basis
centralization,
emphasizes
member, likewise
of opinions and to be heard.
NA election
the
Art. 4 of the new Constitution.
nonparty
opinion
as
put
step.
by the people
to implement
on
delegation
a political
which
legitimacy
their
effectively,
Constitution,
the transition
to include
arm of government,
devolution,
within
on a public
by the rule of law
approaches
Is placed
support
governed
of the people,
and of coordination on the basis of "democratic
deconcentration, 5.
{a state
priorities
responsibility Is established
4.
was based
which:
1.
policies
for legitimacy
4
(PA) report
319
Administration
Reform
Program,"
GCOP,
Hanoi,
May
1993.
32,0
JOURNAL OF PHILIPPINE DEVELOPMENT
The National
PAR program
In 1993,
after two years
of discussions,
(GOV) published
a national
program
(NPAR). According
to this document,
the Government
on Public
the guidelines
of Vietnam
Administration
Reform
on administrative
reforms
5
are the following: •
"... To establish organization, three
defining
powers:
State model. rationally and •
address
"Identification
of Vietnam
between
"Identification
and
committee,
and
...will
organizations,
government
agencies,
leadership
...; of the
machinery;
directions
for
Government
and clarification
a unitary
administration
the political
of the local
for the
within
central-level
the State
the central
of the role
public
amongst between
administrative
mechanism
judiciary
amongst
of principles
relationships
and
of the central
of authority
for State
operational
executive
the relationship Party
system
role and
relationships
the distribution
People's
the
The machinery
Communist
°
institutional
legislative,
"To establish
•
a unified
addressing
the
and local authorities;
authorities:
People's
of its responsibilities,
Council, functions,
and authority..." In May agencies various
1994,
the
GOV issued
to simplify
and
adjust
services.
No.38/CP
administrative
The responsibility
PAR was given to the Government
Resolution
procedures
to coordinate Committee
directing
all
pertaining
to
all the activities
for Organization
related
to
and Personnel
(GCOP). Likewise, candidates
the GOV tested
election
for provincial
December
1994. Since
Committee
(province
in the emergence leaders
government},
at local level boosted
and provincial
5See
ibid
were
of leaders
Council
assembly
the election
the legitimacy
consolidated.
in the first multi-
(provincial
selected which
and more educated
of Public Administration
schools
5.
People's
the provincial
of a younger
The School
the rejuvenation
assembly}
the head
has been instrumental
generation
of provincial and its annexes
in
of People's
of communist
leaders. were established
DIHN: VIETNAM'S PUBLIC ADMINISTRATIONREFORM
Furthermore,
the number
76 to 49 by merging were
The
first
"command" and
wave
system
institutional
of government
ministries
done at the provincial
321
and
state
bodies
was
corporations.
reduced
Similar
from
reductions
level.
of PAR reform
to the "market" framework,
adjusted
system.
which
procedures
It required
were
carried
under
changes
out with
the
in the legal
no opposition
whatever.
Second
/ Ongoing The
further
Party
second
wave
reducing
this wave
Wave
of reform
state
of reform
aims
institutions.
at improving
While
was besieged
the
the
first
by difficulties
and
function
wave
went
of and
smoothly,
is presently
stalled.
Plenum In January
Communist Republic
1995,
Party
in a resolution
8 th Plenum
supported
of Vietnam System."
of public
to build
This
document
reform
renewal
Central
and perfect
a Step
changes the State
toward marked
Committee
the
start
reform,
of the
for which
organization
there
and
work
in the
state
of the
and. resulted of the Socialist
Reforming
and laid out the most current
administration
To continue
of the
the drive for institutional Taking
wave of the institutional in respect thrusts:
the
on "Continuing
Administrative
•
of PAR
the of the state
State second
strategy
are five major
of the
National
Assembly; •
To continue
the
step-by-step
reforms
administrative
system; •
To renew
°
To promote
the work
°
To strengthen Subsequently,
combat
structural
and civil service combating
and organization
the people's the Party's
leadership
an action
plan dated
weaknesses. and aimed
corruption,
of the judiciary
role as master
bodies; and
in the State. March
It encompassed
at reforming
upgrading
of the State;
20, 1.995 was prepared all levels
state organizations,
the effectiveness
to
of government reducing
of the bureaucracy,
waste, etc.
322
JOURNAL OF PHILIPPINE DEVELOPMENT
Organizationalinstitutional This second the function
reforms
wave of reform
of and reducing
administrative
of direct
involvement
economic
restructuring
monetary •
Creating Managing
and
structural
change;
creating
the creation
ministry."
management SOEs
26,
of SOEs changed
of this
of government
balance
and
and
regulatory
SOEs.
However,
there
wants
Those
and
in "International
civil service.
consequently,
free them
at SOEs
(4) abolishment and
between
control
included:
of state-owned
and
over the
believes enterprises.
who have
Colloquium
a vested
on
Public
With
will be "equitized."
economy
faction
through
speed
interest
ministry."
ventures.
conservative
Adding
(3)
have been created
sector
in higher
from their
(1) registration
of "parent
groupings" the
economy
companies;
commercial
in the commercial
which
and managers
and honest
16 "enterprise
is conflict
of commercial
a market
into public
1994,
to retain
faction
innovation
to administer
of a number
reform;
of March
Dom_h
activities;
for investment,
aiming
are classified
47 other
_'Le Dang 1996.
aspect
fiscal
administrative
of a capable
(2} equitization
Presently,
bureaucrats
An important
local government
capacity
New measures
the progressive
and
a framework
including
which
role instead
and
a governmental
91/'FF
a policy-oriented
environment,
financial,
Creating
shedding
strengthening
for the market;
enterprise
the
of but
the role and functions
regional
legal,
The management
Party
on streamlining
included:
central, the
of companies;
toward
macroeconolnic
infrastructure
along
on changing
policies;
Coordinating
decision
focuses
apparatus,
reduction
activities.
was to redefine
the
•
"parent
the
shifted
in economic
which
Managing
•
including
functions
6
in the economy
•
in 1995
and organisations.
First, ministerial
•
started
the size of the state
procedures,
key ministries
that
of the
SOEs
of renovation
to the
Administration,"
and
conflicts
in slowing
Hanoi,
and
down
Sept.
are the
24-
DIHN: VIETNAM'S PUBLIC ADMINISTRATIONREFORM
reform
for their
7
so because
own advantage
of resistance,
At present,
the
Second, evolved. PAR
In each
was
organizations. reduced
in 1994
and
administrative the rule
merged
the division
during
a three-year
priority
was
the need
upgrading through
of civil and a 3-month
was
the state
in establishing
the market
technology
(IT) program
The creation
step
and
toward
of an
relying
to redress
and discussed Another
The training
administrative
helped
on
grievances.
at the end of 1997.
including etc.,
further
public administration
for new tasks.
servants
seminars,
was
were prepared
enacted
streamline
judges
to strengthen
the rule of law and in supporting
and
the role of
the transition
to
economy.
There
was
were frequent
more
and
Programme
These
International
SIDA, etc. Study
participation
to develop
tours
project
than
conducive
22
in Hanoi countries
environment
encompassing
a methodology
the
for the
ministries
on PA
and
Nations
were organized with
on PA organized
a more
A pilot
PAR. Discussions
to seek advice
as the United
culminated
of more
created
learning.
with
now willing such
initiatives
Colloquium
Exchanges
in dealing
VN was
organizations
(UNDP),
servants.
openness
public.
from international
the
Statute
a
from 57 to 61.
an additional conflicts
were
organization, and
and systems.
civil servants
public
course,
And
functions
of ministries
the information
and finally
to train
public
more modern
of the Civil Service period
each
of provinces
introduced
system
their
procedures
methodologies
tribunal
and
the number
of law to solve administrative
Over 20 drafts
and
to review
Law of 1996,
management
scandals.
were equitized.
province
period,
the government
the Budget
cities
this
from 27 to 22 and
through
and
each
corruption
is stalled.
were
formed
During
Third,
with
reform
ministries
ministry,
committee
as seen by recent
few enterprises
SOE's
many
323
funding
Development for senior
organization in September and
institutionalization
19968
organizations.
for further and
civil
of the
exchanges
provinces
and
of PAR 9 was
prepared.
7See ibid _GCOP, _GCOP,
4/
page
107
"International Colloquium on "PAR Framework for Donors,"
Public Hanoi,
Administration," August 1995.
Hanoi,
Sept.
24-26
1996.
324
JOURNAL OF PHILIPPINE DEVELOPMENT
Since
1.991,
maneuvering
a collective
of those
PAR called
competing
for a shrewd
summarized
well
leadership
the
forces
and PAR
incremental
as an effective
PROBLEMS
AND CHALLENGES
reforms
deepen
communist factions.
and
party
for wider
"market widen,
and
strategy.
A UNDP
the 10
and
stability.
socialist
ideological
and
technical
into
conservative
the reform
economic
paper
incrementalism
with
creation
VN. The
that impacted
system
hand,
the
governed
the scene
to maintain
leaders,
On the other
has
to reform:
of VN (CPV) is split
reforms
manage
orientation"
and
problems
arise.
and
difficulties
point
The
progressive
has undermined
of a professional
as
the role
out the need
civil service
(CS) to
the change.
Ideological
Debates
VN wants such
coming after
strategy
For the conservative
of the Party.
ideas
the
behind
strategy
pragmatism
VN follows
system
and Problems
funds
and technology
as democracy,
human
in with the needed a lifetime
funds
of Marxism,
from the outside rights,
etc.,
will infiltrate
and technology. many
leaders
but fears
Justifiably, are
that
the
indeed,
queasy
about
alien
country because a market
economy. For its "Doi Moi" program, Asia,
has
been
learning
close cooperation
sectors.
there
pushed
making As there
orthodoxy
and
Conservatives
10j. Transition,"
that
belong
that
often
targeted
money
economy
Relbrm
and
party
Experience
growth.
state-owned
into nonprofitable
who believe
in socialist
during
with. socialist
such
of
of high. savings,
is only "temporary"
security
countries
and export-oriented specific,
poured
lines and practices
"Vietnam's 1996.
other
model
or ideologists
socialism
to the
Ryan and J. Wandel, UNDP, Hanoi, May
Japan's
toward
belief in a "market
ideology
like many
and business,
are conservatives
think
socialist
using
investment
decisions
is still the strong
i.e., along
and
of government
VN government enterprises,
from
Vietnam,
recession, orientation,"
as in the case of China.
apparatus
-
the
qucst
with
for
minimal
stability
during
DIHN: VIETNAM'S PUBLIC ADMINISTRATIONREFORM
exposure to the outside world but competitive environment. Progressives in order
or liberals,
to sustain
the neighboring and
have
the executive is that
exposed
For them,
extent
pace of reform
Congress
Debates
When
the economy
political
The
draft
pluralism
economic
2010.
change that
They
in a peaceful who think
that
to "catch-up"
with
have
with
belong,
worked in majority,
is less important,
has been
political
and
report
targeted
signal
The changes
has
on the other
undermined hand,
the functioning
to
more important
word
for the exposed
the renovation
needed
party
members
to engage
over
thus
to
rejected
in business.
The
of GDP in year
sending
conflicting
that the Party still considered its members to own businesses.
profit as Another
of SOEs.
the dominant Party
the
to return
Congress
60 percent
in favor of orthodoxy,
negative
split
by the country.
for this
SOEs to represent
of losing political
deeply
the Party wanted
implementation
resents
are
prepared
of the
to micro-manage
This ideological
control, U.S.
economic/institutional
role of the Party.
efforts
of the government.
by the feeling frequently
is that
is much
stabilized,
is the promotion
feeling
liberals
report
forbade
The tone was strongly
conflicting
and
- one that
signals to the private sector: "exploitation" since it forbade
(code
faster
world.
ideology
conservatives
and
old ways. draft
are those
are the elements
to the outside
branch.
hand,
VN needs
These
of an economy
VN develops. Unfortunately,
8th
the running
on the other
development, countries.
been
and
325
thus,
and interfere
resistance influence).
media,
evolution"
"Social
are excuses
with
is exacerbated
the fear of "peaceful
imperialist
by the party-controlled
The government,
evils,"
to slow down
process.
It is worth
remembering
1986 not out of altruism, the party's
legitimacy
expensive
foreign
that
VN introduced
but because
is eroding.
adventures
its hands
The people (Cambodia
and mishandling
of the economy.
the most obvious
manifestation
There
its Doi Moi reforms
were forced.
Then,
in
as now,
were put off by the government's and
China),
are the political
is the sporadic
uprisings
its dictatorial rumblings
style
of which
in the countryside
32,6
JOURNAL OF PHILIPPINE DEVELOPMENT
in 1997, Dinh,
when,
in the
traditionally
workers,
tired
a cradle
of venal
All factions
Doi Moi, thus,
fragile
compromise
was hard Presently, more
educated.
building
and
of the
a market
the
and widens,
of the stage,
but manifesting
be able to deepen reforms.
state Party
The result
system.
Although
and
was that the
State
younger
sustain
Following
the 8 'h Congress,
VN was
disturbances
in various
regions
and
is an unsettling some PAR problems solutions
etc., the crucial
such
relationship
yet to be addressed•
relationship
moves
the fear of the Party
and consequently
as it
environment.
for PAR 11have found has
A
triumvirate
likely slow down
8th Congress
machinery
that
of the
in a very divided
in the size of the government,
Party
hostages.
are, on the average,
programme
PAR deepens
rural
in the party.
members
and
was the continuation
maintenance
leadership
Nam
for PAR reforms.
the PAR would
the result
in the national the
factions
and
peasants
took several
best" option
the
Binh
support,
of commitment
with
a unified
of Thai
Party
bureaucrats,
concerning
However,
as the reduction between
various
committee
official policy toward enunciated
found
process
central
of Communist
reiteration
was
to regenerate
province
that the "second the
combining
decisionmaking
coastal
local party
agreed
of the
leadership
northern
must
administrative struck
to the center
be alleviated
to
and institutional
by two major
and the Asian
As
financial
problems: crisis.
Rural disturbances In 1996 and early and their
local
authorities
1997, there
over
by protests
April and August
by peasants •
because
of lack
fees,
requests
authorities.
_See 12Tien
ibid phong
1997, the province
over corruption, .
between
peasants
of compensation
for
triggered
for _oluntary However,
tax issues
by the
labor'
complaints
Octobcr
2
to
9
imposition
and widespread and
5/. newspaper,
of Thai Binh was rocked and
exaction
of illegal
12
fees by local authorities, local
farmland
clashes
land. Between
and
were violent
1997,
petitions
of numerous abuse were
taxes
of power
not addressed
by
DIHN: VIETNAM'S PUBLIC ADMINISTRATIONREFORM
although
protests
organized
13 in a peaceful
villages
at the
in the province Many incidents
were
charged
In Dong
staged
protest
1997,
freely,
Asian
Indonesia
region
continued
1998.
Several
The
and
to 130 out of 235
of the province.
at the end of 1997, 14
capability Vietnam
Local authorities
several
been
and land
hundred
villagers
attacks
to let its
l_"East
Asia:
crisis
Suharto
World
pledged
headed
home.
effects
of this year was in 1997 installment
newspaper, newspaper, Miracle
13 percent,
the International
and
Crisis,"
Hanoi,
and
of the region's investment of foreign
about
June
that
loan
1.998.
economic as and
the US$2.6
to $1.5
in exports
half what
Monetary
in VN
with less
and trade
shrink
of growth
battered
investment
suggest
of a $530-million
UNDP,
its economy
painful
poorer
Feb. 5, 1998. March 14, 1998. to
package
in May
to stabilize
in 1997 would rate
rescue
had to step down
profound
estimates
The
social
on the region's
for 70 percent Bank
of foreign
increasing
in the
as VN is much
_s Indirect
in several
The uncertainty
pressure
is far more
countries
investment
From
bailout.
to push Japan
countries
sales.
and
to a $57 billion
President began
havoc
a huge outflow
crisis
felt with a drop in foreign
on Asian
$176-million
Dan Dan
agreed
adjustments.
Furthermore,
l_Nhan VLNhan
Korea
meant
for a $43 billion
of the
as investors
financial
crisis
countries
of export
first five months
and
a liquidity
crisis-ridden
in foreign
this year
by speculative
of the yen put increased
already
relies
60 percent
forced panic
as Indonesian Asian
to absorb
have
was
markets,
South
impact
in other
last
spread
legal
on land management
The financial
negotiated
as the weakening economies.
the
were
in Ha Tay province.
regulations
causing
stock
In December,
earlier.
This unrest
occurred
Thailand
countries.
capital from problems.
billion
levels
six out of 7 districts
Nai province,
float
neighboring
crisis
provincial
crisis
currency
than
and likewise
over land rights.
In July
and
and
manner.
with disregarding
rights.
The Asian
district
3"27
billion in the
it was a year
Fund
cancelled
to help
reforms,
328
JOURNAL OF PHILIPPINE DEVELOPMENT
after
Vietnam
failed
to take
concrete
steps
to enact
previously
promised
changes. Vietnam's the world.
Basic
indebtedness a state
of economic
the
indicators Vietnam
dealings,
effects
and
the
deepen
Institutional
organisational
Central-local During
exchange
economic
in a series they
administrative
there
strategy
the war,
implementation institutions
rate,
of moves
have
in order
16
crisis.
VN's
that
no option
suggest but
to
recent that
to try
to
relationship
is tenuous
because
Aside from this, there are also numerous is a lack
of only US$20
of a professional
- 50
civil service
to
for change.
every district
need
to create
of the
1992
at provincial
People's
relationship
(provincial
government) War legacy governments
12/
sanction
and
many
the
this
The Prime Minister and replace
_'cloning" unclear
was The
of central vertical
the People's many
and
parochial
problem
there
The responsibilities
created
self-sufficiency
exacerbated
the
Council,
authorities
thus,
administration.
problems.
assembly),
the People's
and central of regional
local
Constitution
(provincial between
to development. cannot
had to live in autarky, a modern
level raised
Council
horizontal
l_Ibid
greater
government
compelling
branch,
to bring
as well as low pay, in the range
Furthermore,
a long-term
bottleneck
swiftly
overseas
With Asia in
reforms.
procedures.
problems
per month.
provincial
act
budget,
secrets.
Problems
of lack of administrative
hurdles.
region's
know
long-stalled
The central-provincial
of the
as national
in
cut off cash aid to ailing state enterprises
of the
government
information-starved
are state
must
of the dong was the latest
somehow
the
such
reserves
move to a more competitive
worst
party
prepare
one of the most
currency
crisis,
in .financial
devaluation the
foreign
let its currency
avoid
remains
economic
and
transparency and
economy
and
and
Committee
administrative have
behavior
of
become
a
(PM), the head of the executive
immediately
the head
of a provincial
DIHN: VIETNAM'S PUBLIC ADMINISTRATIONREFORM
administration.
The GOV is reviewing
in the functions require
of the provincial
a change
Organizational
of public
Committee
service
staff executives
estimated
the task
However, facilities,
°
Lack
to design,
public
administration;
Insufficient
With
fewer
service
personnel. version
legacy
of strong
has
with
human
current
Another inadequate
GCOP
The lack
of a modern
passed
constraint
and
stature iv
within
and
methods; negotiate
projects
for the
finds
it difficult
to manage was
statute
being
ways.
to plan train
the
and civil
(although
drafted)
and
a the
that is still basically
administrations,
give it enough
both at central
Even if GCOP is equipped authority
because
the
to carry
out
its
civil service
and
an
as they are.
is the lack of reforms
and
it will not be effective
incompatible
Civil service
of the staff in
countries.
civil service
many
resources, not
development
in an administration
in unpredictable
does
already
resources
and recently,
constraints:
and
as this paper
of by law. Thus,
understanding
economy.
staff,
efforts,
material
"structure"
in foreign
PAR reform
do things
and
responsibilities,
and
150
been
by men instead
Yet,
of senior
human hand
its overall
for professional
ideoloKy resulted
and local levels,
based
than
GOV's
is a staff agency.
and
environment
revised ruled
equipment
opportunities
a market
changing
prepare
(GCOP)
for the management
GCOP faces many
Lack of adequate of capacity
1990s
of strengthening
without
•
implement
will
and Personnel
at 1.3 million on the other
responsibilities
GOV' structures.
in the early
responsibilities
on one hand,
with PA reform
for Organization
created
with operational
in the Civil Service
°
but any improvement
or its modernization
problems
it is entrusted
the
problems
administration
in the Constitution.
The Government in charge
these
329
of a professional
and the role of government
entrance
exams
are new.
The
in a markettraining
17GCOP,"Strengthening of the capacity of GCOP," SIDA, Hanoi, May 1997
and
3.]0
JOURNAL OF PHILIPPINE DEVELOPMENT
upgrading
of civil and public
servants
are basic• _s Yet, personnel on ideology
than
on competency.
(CSS) have
been
prepared
lack
of a scheme
strategy
including
selection
administrative
in the public
Over 20 drafts
but none
has
for Party personnel.
been
sector
of the Civil Service accepted,
Finally,
judges,
there
etc.,
is more dependent due
Statute
mainly
to the
is a lack of a long-term
on PAR, Public
sector
teachers
and
probably
a factor
Corruption.
wages
have
civil servants behind
not kept
have
many
up with
to "moonlight"
widely publicized
This is a manifestation
that
inflation• and
hold
allegations
even after
Most
of the
a second
job,
of bribery
and
half a century
of armed •
struggle,
the administration
uncover
connections
all, the these
lack
between
of clear
rules
institutions.
corruption.
Unless
the bureaucracy policy
reform These
hurdles.
SOEs,
and
banking
the
civil servants
secure
can be expected
governing
GOV has a stake
to position
.
of law• Corruption
and Party
regulations
As a result,
officials,
19
trials
and above
the management
to introduce
new
in the success
of
laws
on
of reforms,
itself to delay or distort
various
efforts• examples
illustrate
from the hnplementation manpower,
has still little concept
knowhow Presently,
to the deepening
the various
technical
of PAR in a transitional and
resources
both ideological and widening
difficulties
economy,
to overcome and technical
that
it requires
administrative difficulties
arise time,
and
legal
are constraints
of PAR changes•
Challenges Amid the
all the difficulties
financial
escalating
crisis for public
of a professional of law.
and
and
the
of recriminations slow down
administration
civil service,
L_UNDP, "Catching up - Capacity UN[CEF, Hanoi, Oct. 1996, page L'Tamexco, Epco. Minh Phung,
which
of investors
of the
reforms. will manage
Development 108. etc. corruption
for
economy,
The challenge
Poverty trials•
the change
Elimination
and etc.,
farmers, needs
are
is the creation within
in Vietnam,"
the rule
UNDP,
DIHN: VIETNAM'S PUBLIC ADMINISTRATIONREFORM
Need for a professional There economy
is marred
funding and
civil service
is a discrepancy
technology.
between
by lack
2° Its objective
estimated
prepare
to double
and
capacity
administration implement
of .capital
manage
financial
absorptive
not
and Moiff
need
that
rural
rural
byall
poverty
against
North
Bank's
and
and
to
by the low
that
the
public
competencies
policies.
especially
to
For example, was
is clear
between
by 35 percent
in
urban
since
the
Doi
and VN is still a very poor
is likewise
bureaucrats
identify
according
civil service
widespread
This need
external
must
(ADB) commitment
South,
reduced
remains
corrupt
23
staff
professional
been
requires sector
signs
to government
Development
has
standards.
protest
necessary
for a more
Poverty
are
VN's
its backward
As witnessed
there
the
exist between
areas.
nevertheless,
country
and
investments
standards.
pursuant
only 6 percent of the Asian disbursed in 1996. • urgent
international
have
the means.
its GDP per capita
for investments,
does
imbalances
and
for investment
economic
the reform process
The
the objectives
at US$21 billion. 21For this, the public
projects,
international
331
manifested
in the
in Thai Binh,
Ha Tay, and
the environment
for private
recent Dong
Nai provinces. The lack of professional development
becomes
enterprises,
state
development.
The recent
by state foreign official down
policy, due
personnel
_°Tran
Alliances and
brought
make
Tue,
the
things
'Won
lack
crisis.
by bureaucratic has
are
worn
of absorptive
The
to
borrowing
initial
off. Signs
state
impediments
inefficiency
capacity
sector
large
and investment-related
financial
euphoria
tape,
line ministries,
investors
of trade-
is being tempered thus,
between
foreign
binge
has
to red
van
risky. banks
enterprise investors
civil service,
optimism and unsettled
of economic and
lack
slow-
of trained
worse.
va Tal
san
Doanh
nghiep
nha
nuoc,"
(Capital
and
assets
of
Thoi Bao Kinh Te, Hanoi, 28 Sept. 1996. Quy Hao, "Ganh nang Tren duong Cotag Nghiep Liabilities on the road to Industrialization), Thoi Bao Kinh Te, Hanoi, 26 Oct. 1996. 21"Public Investment Programme 1996-2000," Ministry of Plan and Investment, June 1996, page 14, _See ibid 13 page • 1. _aProtest
against
of
corruption
and
local
government
in
Thai
Binh
Province
in
May
SOEs) Hoa," Hanoi,
1997.
332
JOURNAL OF PHILIPPINE DEVELOPMENT
VN has adopted However,
the "gradual,
this approach
is no longer continue
without
appropriate
a professional
rule-of-law,
the
sustainable
growth
CONCLUDING
and
may
and
are signs
It started
with
establishment
the
and
of state
economic
openness
PAR process. As a matter from
party
an
of the
functions,
channel
stabilization began
Vietnam's
leaders
their
members
faith,
The public
and
and
to develop
was
was split over the extent
rule
interests. of law,
the
adjustment
of
the functioning
within a trend
because
the Party. toward
social
There
using
the
grievances.
crises were overcome
returned
a socialist
to hamper market
lose political
Evidences
suggested
impediment
and pace of reform
the
economy.
they would
a major
and role in
this was stalled
factions
to flow in, ideology
to lose control
competing
the government's
for addressing
grip on the economy.
reform
development.
However,
they believed
thus,
pragmatic
on the
has been successful,
sought
pattern,
and
especially
society
a recession.
on legal legitimacy.
based
various
of a
on limited
at improving
has been redefined.
of reforms
reliance
and. sequential
aimed
in the Vietnamese
causing
NA and
leadership
to the economic
between
wave
and the establishment
incremental
for legitimacy
institutions'
of ideological
The leadership
the aegis
a transformational
political
investment
if they loosened
of the
emphasis
wave of reform
when
etc.,
initial
down without
role
followed
procedures
of law as a legitimate foreign
from
plan.
during
The
1.992 Constitution
disagreement
However, and
search
development
of ideological
fully
a long-term
by VN with the Doi Moi process
inflation
It followed
of the
The ongoing
rule
has
to the fractured
institutions
under
to
and
fiscal,
new
of the growing
reform
due
budget, the
disruptions.
strategy
without
afford
accelerated
significant.
has brought
Constitution.,
administration
is more
been
monetary,
legal infrastructure)
avoiding
for change
development.
undergone
has
(macroeconomic,
elections
benefit
strategy VN cannot
REMARKS
decade
The
world..
civil service,
not
for policy reform.
of a long-term
approach
competent
country
The transformation last
change
the benefit
approach"
in a fast-changing
with this "learning-by-doing"
Without
the
step-by-step
power
that
:[ear
to relbrms.
and was divided
DIHN: VIETNAM'S PUBLIC ADMINISTRATIONREFORM
on
next
PAR steps
to be taken.
One
between
economic
nonsynchronization administrative
reform
Economic leadership
may be some forces
has outpaced
or an "external
slowdown
for higher
interests
economic
deeper and wider reforms countries in the ASEAN. The groups stake.
sustainability
(farmers,
which
reform
dampens
Until a strong
interplay
the leadership
civil servants, there
party
design
a long-term
the Party
the two should the Asian to tackle
nature
with
there
plan
members,
are
mostly
that
that
rural
urgent
etc.)
have
a
VN is in
civil service, definition
of a of
of the PAR reform. the
government 6,000
is needed
is now
state
by the tensions
disturbances,
action
various
and the division
loss-making
SOEs is highlighted
neighboring
to pedal.
The
apparatus,
signs
additional,
on reforms.
for change.
the state
Amid the recent
to the idea
of political
that
of a professional
be the next priority
Vietnam's
of reforming
and economics.
are also warming
crisis,
and
there
and has reduced
will require
is no backpedaling
will help
prepared
the and
VN's economy,
The strong
process
not fear the creation
The political politics
is that
reform.
for "catching-up"
should
between
more
in its drive
businesses,
between
was hand
at the time when VN needed
The Party
Amid
one
of a cyclist 24 who will fall if he does not continue
relationship labor
shock"
has divided growth
of the
The consensus
a position
problems on
administrative
in the PAR process,
with competing
chances
main
reform
on the other,
reform
emerges
of the
333
firms.
between
Party ideologues to improve
the
living and farming standards of Vietnam's peasant landholders. Hope is rising in government that a "second wave" of concrete reforms could soon begin. But without a proper role between the party and the continuation of the Doi Moi will be difficult at best.
1996.
state
machinery,
a'_R.Morey in "international Colloquium on Public Administration," Hanoi, Sept. 24..26,