Publication: Improving Business Regulations to Support Productivity Growth in Viet Nam
Loading...
Other Files
10 downloads
Date
2024-12-16
ISSN
Published
2024-12-16
Author(s)
Editor(s)
Abstract
To achieve high-income status by 2045, Vietnam must accelerate regulatory reforms to boost productivity. Vietnam’s stellar economic success story over the last 30 years relied on export-oriented foreign direct investment (FDI), but reaching high-income status requires accelerating productivity growth. Firm-level analysis points to misallocation as a critical constraint to productivity growth in Viet Nam. Regulatory reforms can create favorable conditions for reallocating resources from less productive firms to more productive ones. They can also reduce costs, lower business risks, and promote firms’ investment and productivity growth. Finally, they can encourage entry of new domestic and foreign firms, especially innovative, tech-based, green, and high-productivity firms, and exit of low-productivity ones as part of a creative destruction process. This report assesses the implementation progress at the mid-term of Viet Nam’s program to reform business regulations between 2020-2025, governed by Resolution 68/NQ-CP of May 12, 2020. The report identifies areas for improvement to achieve its objectives in the short term and shares policy recommendations on how to continue developing the regulatory environment conducive to business dynamism and productivity growth in Viet Nam in the medium term.
Link to Data Set
Citation
“World Bank. 2024. Improving Business Regulations to Support Productivity Growth in Viet Nam. © World Bank. http://hdl.handle.net/10986/42546 License: CC BY-NC 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Related items
Showing items related by metadata.
Publication Better Regulation for Higher Growth : Bulgaria's Business Regulation - Achievements and Recommendations(World Bank, 2010-11-01)Removing regulatory obstacles that create barriers to business is a major objective for economic policymakers. There is broad understanding among policymakers and development practitioners that microeconomic reforms aimed at strengthening property rights, unleashing competition, and reducing the cost of doing business are critical to creating a sound investment climate and promoting economic growth (World Bank 2004; World Bank 2005; Lewis 2004). It is also commonly agreed that these changes need to be credible and sustained for private firms to respond by increasing investment and production (World Bank 2005). This report summarizes the findings of three topical studies of the World Bank: Administrative and Regulatory Barriers to Business (volume two) studies the overall burden of regulation for companies in comparison to other new European Union (EU) peers and specifically assesses Information Technology (IT) and manufacturing companies and the role of key stakeholders. The ex-post impact assessment of the act on limiting administrative regulation and administrative control on economic activity (Volume three) makes an assessment of how the act has been enforced, identifies and estimates the impacts of the act, and provides recommendations for amendments. Reforming the regime of state fees (volume four) examines how reforms to the structure of state fees could decrease the regulatory burden for firms.Publication Lithuania - Country Economic Memorandum : Converging to Europe - Policies to Support Employment and Productivity Growth(Washington, DC, 2002-10-07)Lithuania's long-term economic strategy aims at building the foundations for achieving rapid convergence with Western European countries. The medium-term objective of the economic policy is to meet the economic criteria for accession and to get ready for membership in the European and Monetary Union (EMU) after accession. This will be acheived through continued macroeconomic stability, fiscal consolidation, and further implementation of structural reforms needed for an efficient functioning of the market economy, improved productivity, and enhancement of competitiveness. This report focuses on three critical elements of the structural reform agenda: 1) labor market reform, aimed at increasing labor market flexibility and improving the utilization of labor resources throughout the economy; 2) regulatory reform and reform of the business environment, to support private sector development and growth in both urban and rural areas; and 3) social protection reform, to improve targeting, effectiveness, and efficiency.Publication Better Regulation for Growth(Washington, DC, 2010)Regulatory reform has emerged as an important policy area in developing countries. For reforms to be beneficial, regulatory regimes need to be transparent, coherent, and comprehensive. They must establish appropriate institutional frameworks and liberalized business regulations; enforce competition policy and law; and open external and internal markets to trade and investment. This report examines the institutional set-up for and use of regulatory policy instruments in Zambia. It is one of five reports prepared on countries in East and Southern Africa (the others are on Kenya, Uganda, Rwanda, and Tanzania). The report is based on a review of public documents prepared by the government, donors, and the private sector, and on a limited number of interviews with key institutions and individuals.Publication Accounting for Growth in Latin America and the Caribbean : Improving Corporate Financial Reporting to Support Regional Economic Development(Washington, DC: World Bank, 2010)In the Latin America and Caribbean (LAC) region, as in the rest of the world, reliable financial information is the cornerstone of a robust market economy and efficient public sector. This book presents both an analysis of the broader trends derived from the individual country-level studies produced under the Report on the Observance of Standards and Codes (ROSC) Accounting and Auditing (A&A) program and a synthesis of lessons learned from the Bank's experiences working with policy makers and other stakeholders to implement the ROSC A&A recommendations. This first chapter introduces the book by showing how sound A&A practices in the private and public sectors contribute to LAC development agenda, and by describing the regional economic context. It then presents three case studies of successful financial reporting and auditing reforms within LAC, showing how these reforms have benefited the countries. It describes drivers of reform that have led some countries to adopt global standards of good A&A practice and others to take a more conservative, wait and see approach. Finally, the chapter describes the objectives and methodology of this study, and the structure of the book.Publication Doing Business 2008 : Comparing Regulation in 178 Economies(Washington, DC: World Bank, 2007)Doing business 2008 is the fifth in a series of annual reports investigating the regulations that enhance business activity and those that constrain it. Doing business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 178 economies, from Afghanistan to Zimbabwe, and over time. Regulations affecting 10 stages of a business's life are measured: starting a business, dealing with licenses, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts, and closing a business. Data in doing business 2008 are current as of June 1, 2007. The indicators are used to analyze economic outcomes and identify what reforms have worked, where, and why. The Doing business methodology has limitations. Other areas important to business-such as a country's proximity to large markets, the quality of its infrastructure services, the security of property from theft and looting, the transparency of government procurement, macroeconomic conditions or the underlying strength of institutions-are not studied directly by doing business. To make the data comparable across countries, the indicators refer to a specific type of business-generally a limited liability company operating in the largest business city.
Users also downloaded
Showing related downloaded files
Publication At Your Service?: The Promise of Services-led Growth in Uzbekistan(Washington, DC: World Bank, 2025-01-07)In Uzbekistan, the services sector accounts for more than half of all jobs and has been central to the process of structural transformation over the past three decades. In the past decade, the growth of Uzbekistan’s services exports has lagged behind its manufactures' exports while FDI greenfield announcements to both sectors have been even. The growth of the services sector in the past five years was driven by social services, mostly reflecting increased public spending. This report groups the services sector into four categories based on their skill intensity, the extent of their linkages with other sectors, and their tradability in international markets: low-skilled consumer services, low-skilled enabling services , global innovator services. Of these groups, social services accounted for three-fourths of employment growth in the services sector between 2017–2022. These services also experienced relatively high rates of labor productivity growth, which was largely driven by higher public spending on wages and salaries.Publication The Markets and Competition Policy Assessment Toolkit(Washington, DC: World Bank, 2025-01-09)The markets and competition policy assessment toolkit (MCPAT) is a guide for understanding how policy can positively shape markets and address market failures that ultimately affect micro- and macroeconomic development issues. The MCPAT aims to support policymakers, competition authorities, and development finance institutions in realizing the advantages of competitive and well-functioning markets by setting the right conditions for firms to improve their economic performance and for markets to allocate resources efficiently. Competitive and well-functioning markets do not just benefit consumers, - they benefit entire economies as they promote productivity, innovation, efficiency, and consumer choice. The goal is not simply to increase the number of firms in a market or to restrict market power but to create an environment where competition can thrive, firms can innovate, and markets can function optimally. The structure of this toolkit follows the steps to conduct an MCPAT analysis in a specific sector or market. Part I provides an overview of key concepts that set the basis for conducting the MCPAT analysis and covers the first step of the MCPAT. Part II focuses on diagnosing market issues. Part III is about how to fix markets.Publication Global Economic Prospects, January 2025(Washington, DC: World Bank, 2025-01-16)Global growth is expected to hold steady at 2.7 percent in 2025-26. However, the global economy appears to be settling at a low growth rate that will be insufficient to foster sustained economic development—with the possibility of further headwinds from heightened policy uncertainty and adverse trade policy shifts, geopolitical tensions, persistent inflation, and climate-related natural disasters. Against this backdrop, emerging market and developing economies are set to enter the second quarter of the twenty-first century with per capita incomes on a trajectory that implies substantially slower catch-up toward advanced-economy living standards than they previously experienced. Without course corrections, most low-income countries are unlikely to graduate to middle-income status by the middle of the century. Policy action at both global and national levels is needed to foster a more favorable external environment, enhance macroeconomic stability, reduce structural constraints, address the effects of climate change, and thus accelerate long-term growth and development.Publication Viet Nam - Recommendations to the National Roadmap and Action Plan for the Electric Mobility Transition(Washington, DC: World Bank, 2024-12-04)In July 2022, the Prime Minister of Viet Nam approved the 'Action Program on Green Energy Transportation – Reduction of Carbon and Methane Emissions of the Transportation Industry' through Decision 876/QD-TTg, marking the country's first policy aimed at reducing the transportation sector's greenhouse gas emissions by 7.2 percent. This initiative is crucial for achieving Viet Nam's Nationally Determined Contributions (NDCs) under the Paris Agreement and the 2050 net zero target. The report provides policy recommendations to transition the road transportation sector to electric mobility (E-Mobility) with goals of having 50 percent of urban vehicles and all urban buses and taxis powered by electricity or green energy by 2030, and 100 percent of all road vehicles by 2050. The recommendations are based on quantitative analysis covering EV demand and supply, power sector upgrades, charging network development, and battery demands, highlighting benefits such as reduced gasoline and diesel demand, job creation, lower local air pollution, and significant contributions to emission reduction targetsPublication Poverty and Equity Assessment for El Salvador 2024(Washington, DC: World Bank, 2024-12-12)This report proposes an agenda for building on gains to re-accelerate poverty reduction among Salvadorans. The last World Bank Poverty Assessment for El Salvador, from 2015, proposed two key policy recommendations: (a) effective pro-poor spending and (b) reduction of crime and violence through better access to jobs and education. Nine years later, the authorities have managed to achieve a substantial reduction in crime and violence and have indicated an intent to build on such progress to establish a path toward an El Salvador where shared prosperity is achievable. In this report, we propose a three pillar structure to address poverty and inequality reduction: jobs, services, and social protection, with a cross-cutting set of primary conditions that articulates this structure.