An International Forum entitled “Administrative reform and sustainable development” was held in Hanoi on April 3-4 by the Central Institute of Economic Management (CIEM), the German Technical Cooperation (GTZ) and the Chinese Institute of Reform and Development.

The forum drew the participation of economic experts and economists from Vietnam, Uzbekistan, Laos, Mongolia and international organisations such as the United Nations Development Programme (UNDP), the Japan International Cooperation Agency (JICA) and the Danish International Development Agency (DANIDA).

In his speech at the forum, Dr Cao Viet Sinh, Deputy Minister of Planning and Investment said that administrative reform is a complicated and sensitive issue. Despite Vietnam’s investment environment and competitive capacity being improved, the country still has a low rating in terms of administrative reform.

In the current context, amid the fluctuations of the world economy, it is imperative to reform administrative institutions to meet development demands.

Vietnam has pledged to shift the subsidised economy to a market economy through the successful implementation of a five-year plan for socio-economic development (2006-2010). However, the fluctuations of the world economy have greatly affected the economies undergoing a transitional period such as Vietnam and China.

Dr. Vo Chi Thanh from the CIEM said that taking full advantage of integration to enhance the reform of economic institutions is a key factor in creating confidence, helping to boost investment, business and development.

China is considered to be a major transitional economy. Dr. Chi Fulin from the Chinese Institute of Reform and Development shared his experience at the forum, “ A breakthrough in administrative reform is to establish a super ministerial agency, which can delegate the tasks of centrally-run agencies in charge of controlling the macro-economy. The super ministerial agency should play an important role in optimising the organisation of the State, standardising the building of State agencies and perfecting the State apparatus.”

Economic experts pointed out weaknesses in the transitional economies such as the opaque business environment, lack of clarity for businesses and investors, and complicated administrative procedures, which interfere with people and business operations. In addition, there remained unclear and inconsistent regulations and mechanisms in the legal environment and cadres with poor capability and morals have failed to meet demands in the process of economic transition and international economic integration.

The focus of the two-day forum is on growth and sustainable development in the process of international economic integration, the challenges and prospects for the transitional economies, institutional reforms, administrative reform and improvement of the business environment and the State’s role in providing public services.