Managing the renewal process: The case of Vietnam

In: Public administration and development: the international journal of management research and practice, Band 13, Heft 4, S. 435-451

Abstract

AbstractThis article reviews the management of Vietnam's renewal process from the viewpoint of understanding the structure of the economy. It argues that, in terms of population, income and welfare, Vietnam has been relatively more successful than other less‐developed Asian countries. At the same time, historically, its economy was only to a minor degree under central government management—in contrast to the ex‐USSR and Eastern Europe—and hence it has been capable of a more flexible response. Its human capital stock is strong but performance has been constrained by war, embargo and mistakes of strategy. Against this background, the article traces the reform process, from the brief interlude with central planning through the inauguration of 'doi moi' after cessation of western and Chinese aid. The initial stress has been on macroeconomic stabilization. The problems of achieving this and the reasons for success are advanced. The next stage of the reform encompasses additional areas where international assistance may be relevant: the legal and institutional framework for the market economy, reform of government administration and improving enterprise management. Following the new constitution of 1992, public administration reform has come to the fore—both structural as well as in relation to central‐local government relations. This article describes the machinery for reform implementation as well as its scope, which encompasses the size and staffing of the civil service, salaries, human resource management, systems and procedures, turn‐round of state enterprises and management skills development. The article continues with a review of two key multilateral assistance projects. The path‐breaking UNDP Management Development Programme has conducted training in economic management and supported the development of the legal system. The project has had an important impact on policy‐makers and on policy discussion. A successor project will provide support to public administration reform in Vietnam. In the light of the current dramatic expansion in aid to Vietnam from DAR sources, the article concludes that control and coordination of overseas assistance by the government will be vital if aid is to be fully utilized and work in total support of Vietnam's existing development effort.