Barriers to competition and inefficient regulations increase the costs of doing business in Vietnam, thereby deterring investment and slowing economic growth. Australia supports the Government of Vietnam to achieve its targets for improving the business environment and shifting Vietnam towards a more market-based economy.

Overview

Aus4Reform (2017-2025) aims to boost productivity, competitiveness and good governance in Vietnam. The program supports the development of quality policies, laws, and institutions through advocacy, consultation, and by strengthening the evidence base for economic policies and good governance - drawing on international experience and expertise, especially from Australia and using feedback from citizens to policy makers. Aus4Refrom has two key activities:

1. The Reform program (6.5mil 2017-2022) works with government partners (Ministries and Vietnam's Chamber of Commerce and Industry) to support the development of quality policies, laws, and institutions - drawing on international expertise, especially from Australia.
2. The Vietnam Provincial Governance and Public Administration Performance Index – PAPI (14mil 2017-25) implemented by UNDP, is the country's largest annual citizen-centric, nationwide policy monitoring tool for better local governance and public administration.

Results to date

• To increase productivity and competition in the Vietnamese economy, the now-concluded Aus4Reform program have helped abolish 3,299 ineffective business conditions and enact a strengthened competition law.
• Aus4Reform's contribution to Enterprise Law revision and studies on business reforms helped enhance the knowledge of free trade agreements and improved the business environment in Vietnam for investments and doing business.
• Aus4Reform's reports on economic and regulatory reforms in economic recovery helped Vietnam make better informed decisions to respond to the COVID-19 pandemic.
• PAPI report and related discussions provided data for government agencies to review their performance and policies. By Dec 2021, all 63 provinces in Vietnam had hosted PAPI workshops and 30 provinces renewed their commitments to improve performance.