Launching the Vietnam Private Sector Forum Wolfgang Bertelsmeier, Special Representative, Europe Public-Private Development Workshop Paris, February 1-2, 2006

2 Vietnam – Launching the Private Sector Forum (PSF) The Setting  Late 1980’s Doi Moi  1996 « The bloom is off the rose »  Declining FDI  Slow down of reform process  Lower growth  Mid-1997 Asia crisis  Dec 1997 CG meeting Tokyo - IFC recommends dialogue Government-Private Sector  Feb 1998 Prime Minister meets foreign investors  Mid-1998 One day private sector meeting ahead of interim CG meeting  Dec 1998 First IFC orchestrated PSF  Dec 2000 Vietnam Business Forum

3 Vietnam – Private Sector Forum Evolution IFC suggests dialogue at Tokyo CG meeting IFC suggests dialogue at Tokyo CG meeting Prime Minister meets hundreds of foreign investors in free-flowing unstructured meeting Prime Minister meets hundreds of foreign investors in free-flowing unstructured meeting  Contradictory recommendations  Requests for protection  Conclusion: high-level meetings with individual companies not very productive Government, donors and private sector ask IFC to organize Private Sector Forum Government, donors and private sector ask IFC to organize Private Sector Forum  To distill common concerns working through chambers of commerce and associations  Setting up of PSF as part of CG with 3 parties: Government Government Donors Donors Private Sector Private Sector

4 Vietnam – Private Sector Forum 2000 Evolution (cont’d) Expanding the PSF to include domestic private sector Expanding the PSF to include domestic private sector Organizing working groups meeting monthly Organizing working groups meeting monthly  Banking  Legal  Infrastructure  Manufacturing Planning a Secretariat for the PSF under IFC umbrella funded by foreign chambers of commerce and donors Planning a Secretariat for the PSF under IFC umbrella funded by foreign chambers of commerce and donors

5 Vietnam – Private Sector Forum 2000 PSF Every 3 monthsContinually Donors and Private Sector Meetings  Chaired by IFC  Sponsored by Embassy of CG 1.Definition of agenda for PSF 2. Review, discussion and agreement on statements to be made at PSF Working Groups Prime Minister Donors Private Sector Consultative Group Meetings Semi-annually Linked with relevant Ministries

6 Vietnam – Private Sector Forum Challenges Overcome Some opposition within Government Some opposition within Government Internal doubters within World Bank Group Internal doubters within World Bank Group Some donors hesitating Some donors hesitating Some private sector fatigue Some private sector fatigue Some chambers of commerce prefer bilateral contacts Some chambers of commerce prefer bilateral contacts Domestic versus foreign investors Domestic versus foreign investors Risk of overload on Government and donor agenda (e.g. demand for civil society forum) Risk of overload on Government and donor agenda (e.g. demand for civil society forum)

7 Vietnam – Private Sector Forum Lessons Born in crisis situation Born in crisis situation Government, donors, foreign investors looking for improvements to accelerate investment Government, donors, foreign investors looking for improvements to accelerate investment Government genuinely interested Government genuinely interested Low hanging fruits, focus on tangible results Low hanging fruits, focus on tangible results Beginning with no road map, trial and error Beginning with no road map, trial and error Part of the CG process Part of the CG process Importance of working groups for impact on regulations + legislation Importance of working groups for impact on regulations + legislation Importance of working through associations rather than individual companies Importance of working through associations rather than individual companies Need for secretariat to ensure continuity Need for secretariat to ensure continuity

8 Vietnam – Private Sector Forum Replicability? Sense of urgency or crisis to get started Sense of urgency or crisis to get started Commonality of main goals Commonality of main goals Readiness for dialogue and engagement by Readiness for dialogue and engagement by  Government  Private Sector  Donors Low hanging fruits? Low hanging fruits?  Establish credibility of the approach Instead of once off – sound off events, focus on continuity through associations + working groups Instead of once off – sound off events, focus on continuity through associations + working groups Secretariat Secretariat

9 Cambodia – Private Sector Forum  1990’sPeriod of economic and political crisis with gradual beginning recovery  1999Cambodian observers at Vietnam PSF  2000  Cambodian government asks IFC to help propose a Cambodian PSF  Funding from Australia for PSF Secretariat