Launching the Vietnam Private Sector Forum Wolfgang Bertelsmeier
Launching the Vietnam Private Sector Forum Wolfgang Bertelsmeier, Special Representative, Europe Public-Private Development Workshop Paris, February 1 -2, 2006
Vietnam – Launching the Private Sector Forum (PSF) 2 The Setting Ø Late 1980’s Ø 1996 Doi Moi « The bloom is off the rose » « Declining FDI « Slow down of reform process « Lower growth Ø Mid-1997 Ø Dec 1997 Asia crisis Ø Feb 1998 Ø Mid-1998 Prime Minister meets foreign investors Ø Dec 1998 Ø Dec 2000 First IFC orchestrated PSF Vietnam Business Forum CG meeting Tokyo - IFC recommends dialogue Government-Private Sector One day private sector meeting ahead of interim CG meeting
Vietnam – Private Sector Forum Evolution • IFC suggests dialogue at Tokyo CG meeting • Prime Minister meets hundreds of foreign investors in free-flowing unstructured meeting Ø Ø Ø Contradictory recommendations Requests for protection Conclusion: high-level meetings with individual companies not very productive • Government, donors and private sector ask IFC to organize Private Sector Forum Ø Ø 3 To distill common concerns working through chambers of commerce and associations Setting up of PSF as part of CG with 3 parties: ü Government ü Donors ü Private Sector
Vietnam – Private Sector Forum 2000 Evolution (cont’d) • Expanding the PSF to include domestic private sector • Organizing working groups meeting monthly Ø Ø Banking Legal Infrastructure Manufacturing • Planning a Secretariat for the PSF under IFC 4 umbrella funded by foreign chambers of commerce and donors
Vietnam – Private Sector Forum 2000 PSF Semi-annually • Prime Minister • Donors • Private Sector Consultative Group Meetings 5 Every 3 months Donors and Private Sector Meetings Continually Working Groups § Chaired by IFC § Sponsored by Embassy of CG 1. Definition of agenda for PSF 2. 2. Review, discussion and agreement on statements to be made at PSF Linked with relevant Ministries
Vietnam – Private Sector Forum Challenges Overcome • Some opposition within Government • Internal doubters within World Bank Group • Some donors hesitating • Some private sector fatigue • Some chambers of commerce prefer bilateral contacts • Domestic versus foreign investors • Risk of overload on Government and donor agenda (e. g. demand for civil society forum) 6
Vietnam – Private Sector Forum Lessons • Born in crisis situation • Government, donors, foreign investors looking for • • • 7 • improvements to accelerate investment Government genuinely interested Low hanging fruits, focus on tangible results Beginning with no road map, trial and error Part of the CG process Importance of working groups for impact on regulations + legislation Importance of working through associations rather than individual companies Need for secretariat to ensure continuity
Vietnam – Private Sector Forum Replicability? • Sense of urgency or crisis to get started • Commonality of main goals • Readiness for dialogue and engagement by Ø Ø Ø Government Private Sector Donors • Low hanging fruits? Ø Establish credibility of the approach • Instead of once off – sound off events, focus on continuity through associations + working groups 8 • Secretariat
Cambodia – Private Sector Forum Ø 1990’s Period of economic and political crisis with gradual beginning recovery Ø 1999 Cambodian observers at Vietnam PSF Ø 2000 Cambodian government asks IFC to help propose a Cambodian PSF Funding from Australia for PSF Secretariat 9
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