State-Owned Enterprise Reform in Viet Nam: Progress and Challenges

Abstract

Being one of the former centrally planned economies, Viet Nam is still home to a substantial state-owned sector. From the implementation of the "Doi Moi" policy in the late 1980s, the restructuring of state-owned enterprises (SOEs) since 1990 is considered as one of three crucial pillars in the process of economic reform toward a market-oriented economy under deeper international economic integration. This paper examines existing challenges in the process of reforming the SOE sector in Viet Nam. The outcome of analysis indicates that SOE reform has made progress that has resulted in a significant reduction in the number of SOE, expansion in the production capacity, improvement of expertise and management ability, and enhancement of competitiveness. On the other hand, the reforming of SOEs has been confronted with a range of issues that require an overarching revised regulatory framework and legal enforcement to accelerate the speed of the privatization process combined with improving the accountability and transparency in evaluating SOE performance as well as applying formal and consistent measurement system to facilitate their reforming.

Innovation, agricultural productivity and sustainability in Viet Nam

“…Spending on rural infrastructure has also generally prioritised new infrastructure and expanding existing networks, rather than recurrent costs such as operations and maintenance (O&M). Moreover, planning processes have paid insufficient attention to ensuring that infrastructure is climate-resilient and meets appropriate technical standards (Crockford, Kaiser and Figueroa-Geron, 2016 [74]; Dinh et al, 2017 [49]), although risk assessments linked to natural disasters and climate change are now compulsory for new infrastructure investments (OECD, 2018 [75]). As a result, much of the stock of rural infrastructure is in a poor condition and not properly maintained.…”

“…The programme aims to develop the rural economy through supporting agricultural modernisation and the development of non-farm rural industries, and accelerating the restructuring of the rural workforce towards non-farm activities (and reducing urban migration), while protecting the environment and preserving Viet Nam's rural values. In doing so, it also addresses a weakness of the first phase of the NTP-NRD, namely that it had given insufficient attention to value chain development, enterprise creation and the diversification of the rural economy (Crockford, Kaiser and Figueroa-Geron, 2016 [74]).…”

“…Poorer communes were often badly served. Pressure associated with achieving NTP criteria led some provinces to prioritise districts and communes with the best chance of achieving 'NRD status', often at the expense of poorer communes (Crockford, Kaiser and Figueroa-Geron, 2016 [74]).…”

“…In 2019, while maintaining the objective of protecting land for rice cultivation, the government replaced the direct area-based payments to rice growers with increased funding for local support programmes. 74 At least 50% of funds available to support rice growers are to be used to support the adoption of new rice varieties, new technologies in rice production, and to promote value chain linkages for the production and sale of rice. Remaining funds are to be used for activities such as periodic soil analyses to guide restoration measures, making improvements to land quality, and investments in agricultural and rural infrastructure.…”

“…35/2015/ND-CP on the management and use of land for rice cultivation. 74 Decree No. 62/2019/ND-CP which also revised the registration procedure that applies when paddy land is converted from rice to another crop.…”