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INCLUSIVE GOVERNANCE ASSESSMENT for VIETNAM November 20, 2017

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INCLUSIVE GOVERNANCE ASSESSMENT for VIETNAM November 20, 2017 SOURCE: ANDREW GREEN/MSI INCLUSIVE GOVERNANCE ASSESSMENT FOR VIETNAM November 20, 2017 This publication was produced for review by the United States Agency for International Development. It was prepared by NORC at the University of Chicago. The authors’ views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. CONTENTS ACRONYMS ............................................................................................................................. II MAP - VIETNAM ..................................................................................................................... IV EXECUTIVE SUMMARY ....................................................................................................... 1 INTRODUCTION ..................................................................................................................... 4 Assessment Purpose .............................................................................................................. 4 Assessment Context ............................................................................................................... 4 Assessment Approach ............................................................................................................ 9 ANALYSIS ............................................................................................................................... 10 Step 1 and Step 2 - The Five DRG Elements AND STAKEHOLDER ANALYSIS ................ 10 Step 3: USAID’s Operational/Programmatic Environment .................................................... 20 RECOMMENDATIONS ........................................................................................................ 25 Step 4: Outlining the Proposed Strategy ............................................................................... 25 ANNEX A: DONOR MATRIX .............................................................................................. 31 I | INCLUSIVE GOVERNANCE ASSESSMENT FOR VIETNAM USAID.GOV ACRONYMS APCA Administrative Procedures Control Agency CCIA Central Commission for Internal Affairs CDCS Country Development Cooperation Strategy CEC Central Economic Committee CECODES Center for Community Support Development Studies CPV Communist Party of Vietnam CSO Civil society organization DCHA (Bureau for) Democracy, Conflict, and Humanitarian Assistance DFID Department for International Development (Government of the United Kingdom) DOHA Department of Home Affairs DPI Department of Planning and Investment DRG Democracy, Human Rights, and Governance FY Fiscal year EU European Union GI Government Inspectorate GIG Governance for Inclusive Growth GVN Government of Vietnam HCMC Ho Chi Minh City (formerly known as Saigon) INGO International NGO INL (Bureau of) International Narcotics and Law Enforcement Affairs IP Implementing Partner ISIS Islamic State of Iraq and Syria KII Key Informant Interview LER Learning, Evaluation, and Research MSI Management Systems International MO Mass Organization MOHA Ministry of Home Affairs USAID.GOV INCLUSIVE GOVERNANCE ASSESSMENT FOR VIETNAM | II MOJ Ministry of Justice MONRE Ministry of Natural Resources and Environment MPI Ministry of Planning and Investment MSI Management Systems International NGO Non-Governmental Organization ODA Overseas development assistance OOG Office of the Government PAPI Public Administration Performance Index PCI Provincial Competitiveness Index PM Prime Minister SAF Strategic Assessment Framework SME Small and Medium Enterprises SOE State-Owned Enterprise STAR Support for Trade Acceleration TPP Trans-Pacific Partnership UNDP United National Development Programme US United States USAID US Agency for International Development USG US Government VCCI Vietnam Chamber of Commerce and Industry VFF Vietnam Fatherland Front VGCL Vietnam General Confederation of Labour VNA Vietnam National Assembly VNCI Vietnam Competitiveness Initiative VUSTA Vietnam Union of Science and Technology Associations WTO World Trade Organization III | INCLUSIVE GOVERNANCE ASSESSMENT FOR VIETNAM USAID.GOV MAP – VIETNAM USAID.GOV INCLUSIVE GOVERNANCE ASSESSMENT FOR VIETNAM | IV EXECUTIVE SUMMARY This Inclusive Governance Assessment involves two interrelated tasks. First, the assessment portion of the task is intended to define the core inclusive governance problem(s) in Vietnam, identify the interests and resources of key actors and institutions that could promote or inhibit more inclusive growth, and consider the United States Government’s (USG) operational and programmatic environment in Vietnam. The assessment portion is expected to examine positive trends in opening policy space in Vietnam that foster economic growth. Research and analysis includes coverage of issues related to political structures, such as national-subnational relations; budget processes at all levels; and oversight of policy implementation. Second, the strategy development segment is intended to result in clear and actionable strategic and programmatic recommendations to address the core inclusive governance problem(s) identified in the assessment portion. The Assessment focuses on the last ten years of development and identifies areas of continuity and change. The Assessment begins with the perspective that the most relevant and prominent governance debate in Vietnam is fundamentally the classic trade-off between efficiency and representativeness. More efficient decision-making processes can be more responsive to emerging issues or policy priorities, but at the expense of excluding information and ideas from citizens and societal organizations; to the contrary, more representative decision-making processes deliberately incorporate information and ideas from citizens and societal organizations, but at the expense of efficient, timely response to emerging issues or policy priorities. The central premise of this perspective is that pathways for information and ideas from citizens and societal organizations into policy making processes at any level are critical for improving inclusive governance, as conditioned by context and the political economy of actors and institutions. The analysis was conducted in line with United States Agency for International Development’s (USAID) Strategic Assessment Framework in order to identify key governance problems and stakeholder interests in the conceptual elements of consensus, rule of law, competition and political accountability, inclusion, and government responsiveness and effectiveness: • The team did not view consensus as a major or urgent problem. While some credit the Communist Party of Vietnam (CPV or Party) with the tremendous reduction in poverty rates and the maintenance of egalitarian socio-economic development, there are concerns that state actors have become slightly more independent of the Party, that corruption may degrade the Party’s legitimacy, and that growing pressure from middle-class demands on the state will lead to widespread popular dissatisfaction. • The team viewed inclusion as an especially significant and urgent problem. At all levels of the state, there are more channels for citizen input, as directed in Party guidance and implemented through two decades of donor-funded public administration reform. While the expansion of opportunities has been impressive, the reality is that these channels often do not meet expectations. Decision-making processes are closed and opaque, and it is apparent that State-Owned Enterprises (SOEs), large private business, and other politically- connected actors have preferential access. The civil society sector itself is particularly weak. The result of these systemic weaknesses in inclusion are that certain voices and perspectives can be lost in important policy discussions and mistakes in policy making can occur. 1 | INCLUSIVE GOVERNANCE ASSESSMENT FOR VIETNAM USAID.GOV • It was clear to the team that the competition of ideas and institutional checks and balances were extremely weak. State actors at all levels and some Party leaders keenly feel the need for more and better information about their performance and citizen perceptions, and indeed support data collection efforts. Closed decision-making processes limit the entry of new or different ideas at every policy stage. Civil society organizations (CSOs) in particular are not engaged in social policy processes, despite playing precisely this key role in advanced and middle-income countries around the world. Accountability in Vietnam must come vertically top-down or horizontally. Horizontal accountability is weak at the national level, however, due to the judiciary’s lack of independence and an inadequate legislative branch; this problem is exacerbated at the provincial level by the fusion between Party and state actors. • The team assessed the rule of law to be generally functional, yet compromised by the judiciary’s lack of independence from the Party-state leadership and control by the Ministry of Public Security. On the positive side, the legal corpus had been broadened and deepened substantially in the last ten years, including new civil and criminal procedure codes, elaboration of special courts, and judicial training. Efforts have also been made to ensure predictability in the application of the law within the economic sector. On the negative side, while efforts have been made to ensure consistency in lawmaking through the recent Law on Laws, the Ministry of Justice faces capacity constraints
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