Vietnam Business Forum Pham Lien Anh VBF Secretariat PPD International Workshop Vienna, April 28-30, 2009 Public-Private Dialogue

VBF in Brief A joint initiative between government, the private sector, and the donor community launched in 1998 A joint initiative between government, the private sector, and the donor community launched in 1998 Essential part of the governments strategy to promote FDI Essential part of the governments strategy to promote FDI Direct link to CG process Direct link to CG process Seven sectoral working groups Seven sectoral working groups 150 reforms effected 150 reforms effected App. US$ 240m in savings for the private sector App. US$ 240m in savings for the private sector

VBF Structure Vietnam Business Forum (VBF) World Bank Consultative Group (CG) International Finance Corporation (IFC) Ministry of Planning & Investment (MPI) Deputy Prime Minister VBF Secretariat Manufacturing & Distribution WG Banking WG Capital Markets WG Infrastructure WG Education WG Mining WG Tourism WG Business Associations Inter -Ministerial Team (IMT) State Bank of Vietnam (SBV) Ministry of Finance (MOF) & State Securities Commission (SSC) Ministry of Transport Ministry of Industry & Trade Ministry of Information & Comms. Ministry of Education &Training (MOET) Ministry of Natural Resources & Environment (MONRE) Ministry of Culture, Sports & Tourism (MCST)/ VNAT Note: Working relationship Establishing Supporting 3 MPI Ministry of Industry & Trade Ministry of Finance (MOF)

VBF & FDI Promotion Strong partnership with foreign business associations and Foreign Investment Agency (FIA) Strong partnership with foreign business associations and Foreign Investment Agency (FIA) Access to the relevant government agencies through FIA to address FDI-related issues Access to the relevant government agencies through FIA to address FDI-related issues Roundtables with central and provincial governments Roundtables with central and provincial governments - Respond to investors feedback and sentiments - Remove obstacles to business and promote FDI projects Inter-Ministerial team to resolve FDI-related issues, including: Inter-Ministerial team to resolve FDI-related issues, including: - Dual pricing of goods and services (electricity, water, air tickets, etc) - Cumbersome procedures in investment licensing and import export - Cap on foreign investment

VBF & FDI Promotion Providing consultation on laws and regulations Providing consultation on laws and regulations that impact FDI -Common Investment Law -Unified Enterprise Law -Decrees/circulars on implementing WTO commitments in conditional sectors -Tax laws and regulations Helping the government in the transition to a market economy and international integration Helping the government in the transition to a market economy and international integration -WTO commitments negotiations and implementation -Tourism marketing and promotion -Legal framework for PPP in infrastructure -Master plan for seaports -Corporate governance -Consumer finance

Main Results Unified legal framework for domestic and foreign investments and businessUnified legal framework for domestic and foreign investments and business Helped phase-out dual pricing of goods and services between foreign and domestic enterprisesHelped phase-out dual pricing of goods and services between foreign and domestic enterprises Streamlined investment licensing and approval processStreamlined investment licensing and approval process Improved protections on patents and industrial designImproved protections on patents and industrial design Helped formulate vital business laws, including the Investment and Enterprise laws, the Securities Law, and the amended Labor CodeHelped formulate vital business laws, including the Investment and Enterprise laws, the Securities Law, and the amended Labor Code Supported Vietnams WTO accession/implementationSupported Vietnams WTO accession/implementation Enabled private sector savings: app. USD240 Mill. (over five years, selected reforms) Enabled private sector savings: app. USD240 Mill. (over five years, selected reforms)

Lessons learned Vital to have a strong link to government-donor dialogue Vital to have a strong link to government-donor dialogue Be structured in communication of PPD agendas and outcomes Be structured in communication of PPD agendas and outcomes Build trust with government by serving as adviser Build trust with government by serving as adviser Use media to create public awareness and progress reforms Use media to create public awareness and progress reforms Monitor progress by Annual Business Sentiment Survey Monitor progress by Annual Business Sentiment Survey Create strong links between PPD and other AS – Potential entry points and consultation tool for BEE projects Create strong links between PPD and other AS – Potential entry points and consultation tool for BEE projects

8 Major Challenges Maintaining participation and commitment from stakeholders Maintaining participation and commitment from stakeholders Adverse attitude of some government agencies Adverse attitude of some government agencies Limited capacity of government Limited capacity of government Balancing different interests and achieving consensus within WGs Balancing different interests and achieving consensus within WGs Lack of champions in some working/sub-working groups Lack of champions in some working/sub-working groups Mobilizing participation/contribution from domestic businesses Mobilizing participation/contribution from domestic businesses Building sustainability Building sustainability