Vietnam - Legal Foundation Review Essential For Government Reform

The Central Institute for Economic Management is working on a study on renovation of the government. Mr. Le Viet Thai, head of the economic institution section in charge of this study, shares with the Saigon Times some ideas about this study.

What are your findings about the roles and functions of ministries and sectoral management authorities?

Our study shows that each ministry has a decree on its role, function and structure. There are more than 100 pages describing the roles and functions of 19 ministries, except for the ministries of Public Security, Defense and Foreign Affairs.

On their part, each minister has a decision to stipulate the role and function of departments. In turn, each department has documents stipulating the role and function of sections and offices. By our own estimate, there are tens of thousands of work items at the ministerial and sectoral levels alone. Frankly speaking, there is not enough time to know whether all such items are executed or not.

What are the impacts of such heavy bureaucracy on the socio-economic life?

Many ministries still retain some functions that are not necessary for State management in a market economy. Business licenses and sub-licenses are examples for unnecessary functions that impede the growth process. What’s more, most ministries have the functions of “policymaking” and “representing the State ownership in State-owned enterprises in relevant areas.” This is the fertile ground for the practice of being both “player and referee” or discrimination against businesses from other economic sectors, thus distorting the market relationship.

Due to the unclear division between the functions of policymaking, State management and public service, the organizational structure of ministries is not clear as well. With such omnibus ministries, the State has to spend many resources on things that are unnecessary. Some typical consequences of this unclear division are the “ask and give” practice between subordinates and superiors, the State “neglect” of its responsibilities, corruption resulting from the State “relaxed” supervision and “special powers” for some State agencies and civil servants. It is the crucial and fundamental cause of the existence of a bulky, inefficient and ineffective administration.

These are obvious weaknesses, but why is it so difficult to make improvement?

Through our review, we found that there are many unnecessary works for ministries, but these works are stipulated in decrees about their roles, functions and structures as a requirement in the Law on the Organization of the Government. The law stipulates that the Government must do this or that work, and so a certain ministry must be responsible for it. However, it’s not easy to modify this stipulation because it is inscribed in the Constitution.
Therefore, the revision of the Constitution is a chance to re-identify the role and function of the State in the process of development. Such a change would make it easier for the organization of the government apparatus. Then, the merging or division of ministries would be made on a scientific, instead of arbitrary ground.

However, the reduction of the role and function of a government agency also means the reduction of their powers. This is sometimes hard to be accepted by the relevant agency and its staff.

How is the position of the Government institutionalized?

Under Article 100 of the 1992 Constitution, “The Government is the executive body of the National Assembly and the highest State administrative agency of Vietnam.” However, reality shows that there are many things that should be clarified to enable the Government to carry out its role and function smoothly. The definition of the Government as “the executive body of the National Assembly” and as “the highest State administrative agency” should be clarified. What is the executive body of the National Assembly? Why is the Government the executive body of the National Assembly, which is a legislative body?

The 1992 Constitution was built during the initial period of the economic reform. The role and the position of the Government in the socio-economic development process at that time are quite different in light of the current context. Therefore, many contents of the 1992 Constitution should be revised and modified, especially the position of and relation between the legislative, executive and judicial bodies and issues regarding State management of socio-economic affairs.

Corruption is currently one of the thorniest problems. In your view, what are the reasons?

The existence of many unnecessary roles and functions is the fertile ground for the proliferation of licenses and illogical power of State agencies. In addition, the lack of clarity and transparency in administrative processes and procedures is another major cause of corruption.

State agencies usually have power associated with financial resources, but the scope is now expanded to include resources of much higher value such as land and natural resources. The authority to allocate financial resources and land as well as associated interests is the most fertile ground for corruption at present.

What do you think is the impact of reform on the role of the State and the Government in the current macro-economic stabilization efforts?

Reducing public investment and budget spending is an important step to stabilize the macro-economy. However, cutting public investment in this or that project is just a stopgap measure. If the role and the function of State agencies in some areas are reduced, there would be no reason for the existence of relevant investment projects. Moreover, to stabilize the macro-economy in the long term, the economy and enterprises as well must be strong. But it’s hard to see strong enterprises in the State corporate sector.

My last word is that the State should not invest in all areas that are commercial in nature. In principle, it should not spend the tax revenue for risky business areas, whatever the efficiency may be.

Reported by Tu Giang
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