RCV and the Master Plan on E conomic R estructuring

1. RCV and the Master Plan on Economic Restructuring Dr. Nguyen DinhCung President, Central Institute for Economic Management

2. Master Plan on Economic Restructuring: Prime Minister Decision No. 339/QD-TTg

3. How RCV will support economic restructuring? • Support to policy oriented activities and institutional reforms : • To reduce risks, costs and increase business autonomy of enterprises, especially private enterprises; • To enable markets to work better and more competitively, especially factor markets. To enable the market to play a decisive role in reallocating resources. • To develop and restructure the value chains, especially the value chain of agricultural products in which Vietnam has comparative advantages such as rice, fish …. • Support and improve the quality of SEPD 2016-2020.

4. Specific activities of CIEM’s component and their expected impacts • Institutional reforms and business environment improvement • Drafting and enforcing the Law on Enterprise (revised) and the Law on Investment (revised); • Ongoing streamlining and reducing market barriers, removing 4 administrative procedures; it is expected that the Doing Business ranking of Vietnam will be raised from 109 to 60; • Significant reducing regulatoryand trade risks and compliance costs ; it is expected that enterprises will have more autonomy to conduct business in all sectors that are not prohibited by law. • Improving the corporate governance framework • Improving the efficiency of regulations to protect investors, it is expected to raise the ranking of Vietnam in Doing business from 157 to 52. • v.v.v… It is expected that these activities will be a breakthrough in institutional reforms and business environment improvement in Vietnam. • Support to the enforcement of the Law on Enterprise (revised) and the Law on Investment (revised)

5. CIEM component activities and expected impacts • Collect, review and identify the list of prohibited business sectors. The list should be clear, transparent. It should be incorporated in the law; • Collect, review and assess all conditional business sectors in order to make them more reasonable and transparent. After the Government removes a number of conditional business sectors, the remaining will be submitted to the National Assembly Standing Committee for approval. It is expected that enterprise will have the business autonomy in all business sectors that are not prohibited ; at the same time reducing the risks and compliance costs of enterprises .

6. CIEM component activities and expected impacts • Identifying the market distortions caused by SOEs and their impacts on the business environment, resource reallocation and solutions to improve the fixed budget mechanism to SOEs • Collect, analyse and assess market distortions caused by SOEs and their impacts to business environment and resource reallocation; propose solutions to improve the fixed budget mechanism of SOEs; • Improve the efficiency of corporate governance of SOEs; • Study and propose to set up an independent agency of SOEs; develop the decree on organization and functions of State ownership • V.v…..

7. CIEM component activities and expected impacts • Support to high level discussion on macro-economic management: quarterly reports on macro-economic situations in Vietnam for high level policy discussion/dialogues. It is expected that this output will contribute to sustaining macro-economic stability and supporting economic restructuring. • Monitoring and evaluating the progress of the Master Plan on economic restructuring: semi-annual report on economic restructuring .

8. Thank you