The Hanoitimes - Local decent-ralisation plans have largely
failed to conform to national strategies, according to a report released
yesterday by the Vietnam Institute of Economics (VIE) and Central Institute for
Economic Management (CIEM).
The report, which focuses on
eight cities and provinces including Hanoi, HCM City, Hai Phong and Kon Tum,
reveals that improperly controlled decent-ralisation has caused an imbalance
between industries' growth and energy supply and brought about serious damage
to the environment.
Before 2003, only the Government
and central level could approve State budget-funded projects. From 2003-06, the
scale and characteristics of projects determined what level was authorised to
approve them. In 2006, ministries and ministerial-level agencies and localities
were permitted to approve a majority of projects.
However, in many cases,
ministries and localities have had to rely on the Government for funding,
causing many approved projects to fall short on funds and forcing localities
to compete for the limited funds from the State budget, according to the
report.
In many provinces nationwide,
localities all vie for the same industries, such as sea transport and mine
exploration, creating tougher competition and reducing national competitiveness
in international integration, said VIE senior economist Vu Tuan Anh, a member
of the report compiling board.
In Vietnam, Anh said,
decentralised models were applied both prior to and during the integration
process in order to give localities flexibility and reduce administrative
bureaucracy, especially in more complicated socio-economic activities.
However, so far, decentralisation
had not been properly linked to economic integration, he said. Both national
and local socio-economic development plans lacked clear objectives and
forecasts about how economic integration would impact their economies.
Director of Vietnam Institute of
Economics Tran Dinh Thien said that decentralisation was a major part of
restructuring the country's economy, as it related to practically every sector.
And while economic integration
had many potential benefits, it was necessary to have suitable mechanisms in
place in order to realise those benefits.
Besides assessing the situation
of socio-economic planning and economic integration, the study also addressed
foreign direct investment attraction and management, public investment and
public infrastructure/services development, land management and regional
co-operation.
The report is part of the Beyond
WTO Programme, developed in response to a request from the Vietnamese
Government for donor support to help with managing economic integration and the
transition to a market economy in the period after Vietnam's accession to the
World Trade Organisation. It was funded by the Australian Agency for
International Development and the UK Department for International Development.
Business & Investment Opportunities
Saigon Business Corporation Pte Ltd (SBC) is incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Health care and Life Science with expertise in ASEAN 's area. We are currently changing the platform of www.yourvietnamexpert.com, if any request, please, contact directly Dr Christian SIODMAK, business strategist, owner and CEO of SBC at christian.siodmak@gmail.com. Many thanks.
No comments:
Post a Comment