Report on Vietnam's social protection system in Indonesia and Korea

On 20-21 Nov. 2009, Dr. Giang Thanh Long participated and made presentation on the social protection system of Vietnam at the workshop “Social Protection in Asia: Current State and Challenges”, held by the Economic Research Institute for ASEAN and East Asia (ERIA) in Jakarta, Indonesia. In his report, Dr. Long provided an overview on the development of the social protection system in Vietnam, particularly since Doi moi, and its relation with economic growth. Then, on 25-26 Nov. 2009, Dr. Long made another presentation on the Vietnamese pension scheme in the workshop “Developing Asia’s Pension Systems: Overview and Reform Directions”, jointly organized by the ADB and OECD. He made a brief view about opportunities and challenges of the current scheme under swift socio-economic changes, particularly demographic changes toward an aging population from the next decade.

Report on aging population at National Assembly Office

On 9 Nov. 2009, Dr. Giang Thanh Long made a presentation on aging issues in Vietnam to the National Assembly members at the National Assembly’s Committee for Social Affairs. In his presentation, Dr. Long emphasized that aging was a great social achievement for Vietnam, but it also would pose a number of policy challenges due to changing living arrangements, types and causes of illness, accessibility to pension and social assistance schemes. Finally, Dr. Long presented some policy proposals, so as to provide healthy and financially-sound aging life for old-age persons in Vietnam.

Demographic bonus and proactive industrial policy

On 30 Oct. 2009 at UNDP Hanoi, Dr. Giang Thanh Long (VDF/NEU) and Prof. Kenichi Ohno (VDF/GRIPS) discussed how VN should take advantage of increasing working age population for robust growth into the future. Dr. Long explained VN's population dynamics while Prof. Ohno proposed proactive industrial policy to avoid the "middle income trap." From both perspectives, improving the quality of human capital was the key. On the same day Prof. Ohno also talked on the same theme at the FTU-VJCC organized conference on Supporting Industry Promotion: Experiences of Japan and Some Asian Countries.  slide1  slide2

MOU signing ceremony of research cooperation

On 23 October 2009, Vietnam Development Forum (VDF) and the National Financial Supervisory Commission (NFSC) organized the MOU signing ceremony of research cooperation. The target of this cooperation is to formulate a feasibility study of macroprudential surveillance for Vietnam financial sector. The ceremony was held by Prof. Kenichi Ohno, VDF’s Project Director, and Mr Le Xuan Nghia, NFSC’s Deputy Chairman. The main contents of the research cooperation include: Assessing the situation of financial market surveillance system in Vietnam, Studying international rules and standards of financial macroprudential surveillance, then providing feasible comments and recommendations for Vietnam financial market surveillance. The final report is scheduled to finish in August 2010.

Security Market Surveillances in Vietnam

On 22nd October, 2009 a presentation on “ Security Market Surveillances in Vietnam” was made by Mr Le Trung Thanh, Deputy of Finance Faculty, Academy of Policy & Development, MPI. The discussions focused on the efficiency of security market in Vietnam, evaluation of security market surveillances and recommendations on how to apply international standards and surveillances model in Vietnam. The participants including experts and researchers in the field strongly agreed with the findings and shortcomings of security market surveillances in Vietnam and highly appreciated the empirical test on market efficiency suggested by the presenter. The Japanese surveillance organization (SESC) seems to be most appropriate that could be applicable in Vietnam. SlideE (PDF13,214KB) SlideV (PDF13,269KB)

Workshop on Management of Marine Protected Areas

On 21 Oct  2009, Ms. Vu Thi Hoai Thu, a VDF researcher made a presentation on “Management of Marine Protected Areas in Vietnam: Issues and Policy Implications” at VDF workshop with the participation of researchers and practitioners from NEU, MOIT, LMPA (MARD) and MCD Vietnam. Inadequate legal system on marine conservation makes it difficult for Vietnam to move from an open access system to a right-based system for effective MPA Management. Participants share the common view that co-management is suitable for MPA management at both provincial and community levels, but this approach has not been legalized in Vietnam’s legal system on marine conservation. Therefore, completion of legal framework on marine conservation in general and on MPA in particular, in addition to provision of economic incentives for conservation and sustainable financing, are urgent needs for Vietnam in coming time. SlidesE (PDF468KB).

Workshop on industrial clusters

On 18 Sep. 2009, Ms. Nguyen Thi Xuan Thuy, a VDF researcher made a presentation on industrial clusters at VDF workshop. Basically, clusters are classified into three types: (i) agglomeration of firms producing the same or related products; (ii) inter-industries relationships found in input-output tables, and (ii) inter-connection of government – academia – industry. Craft-villages can be seen as the clusters type (i), while the type (ii) and (iii) are rarer in Vietnam. Cluster-based policy has been implemented in many countries in the world, and it is crucial for regional/national economic growth. Thus, better understanding in Vietnam is necessary to translate knowledge on industrial clusters into cluster-based economic development policy. SlidesE (PDF543KB), SlidesV (PDF544KB).

Workshop on "Shindanshi: Japanese SME Business Management Consultant System and Applicability to Vietnam"

On 15 Sep. 2009, VDF and National Economics University (NEU) co-organized the workshop on “Shindanshi: Japanese SME Business Management Consultant System and Applicability to Vietnam”. Presentations by Ms. Do Thi Dong and Ms. Pham Thi Huyen (VDF/NEU) were followed by Mr. Yoshifumi Murase (Japanese Min. of Econ. Trade & Industry) who discussed Japan’s industrial corridor initiative in Mekong Region. Questions were raised on (i) government’s role in supporting the system; (ii) shindanshi training; (iii) shindanshi certificate; (iv) creating banks’ trust on shindanshi; (v) pilot study on supporting industry companies; (vi) timing of implementing Mekong-Japan economic and industry cooperation, etc. This is VDF’s third workshop on shindanshi in the effort to introduce the concept in Vietnam. Participants included MOIT, MPI/ASMED, Hanoi DOIT, research institutes, banks, and consultant companies.

VDF working with Japan Automobile Research Institute (JARI)

VDF is working with Japan Automobile Research Institute (JARI) to check auto fuel quality in HN and HCMC and propose fuel standards to reduce air
pollution and health hazards in Vietnam. This is a bilateral project funded by JETRO. The VDF team led by Ms. Le Ha Thanh is providing information, arranging visits, and organizing a steering committee in VN. The report will be ready by early 2010.

Workshop on "Lesson from International Financial Crisis for the Safeness of Vietnam banking system”

On 11 Aug. 2009, VDF held the workshop on “Lesson from International Financial Crisis for the Safeness of Vietnam banking system”. Mrs Pham Bao Khanh, Director of Banking Off-site Supervision Department, Deposit Insurance of Vietnam (DIV), discussed lessons of the global international financial crisis for banking supervision; examination of lessons in Vietnam banking system of the period 2006 – 2009 and some recommendations. In her opinions, Vietnamese banks should focus on risk detection and measurement, priority given to credit risk and operational risk. Besides, there should be regulation revision and corporate governance enhancement.

Avoiding the middle income trap

In Aug. 2009, Prof. Kenichi Ohno (VDF co-leader) gave a series of talk at VN
Academy of Social Sciences, Institute of Economics, and Development Strategy Institute of MPI. These organizations are responsible for drafting the next 10-year strategy (SEDS 2011-2020). Two of the seminars were supported by UNDP. Ohno's argument, which first appeared in ASEAN Economic Bullein, Apr. 2009, was that Vietnam must create internal value to climb from middle income to higher income, and this would require renovation in policy content, structure, and organization. A system of policy documents and a strong technocrat team serving prime minister were proposed, among other things. SlidesE (PDF225KB), SlidesV (PDF532KB)

Workshop on "The Japanese Business Management Consutltant System"

On 16-7-2009, VDF researchers, Ms. Do Thi Dong and Ms. Pham Thi Huyen, gave a seminar on Japan’s shindanshi (business management consultants for SMEs). History, organization, management, and training programs of shindanshi were explained. The recent change in shindanshi exam was also discussed. For application to Vietnam, participants raised such issues as (i) how to build trust of shindanshi among SMEs; (ii) an appropriate legal system; (iii) creating incentives for participation and use of shindanshi; (iv) recognition and prioritization by government; and (v) preliminary survey on business consultancy in VN. Participants included Hanoi DOIT, VN Assoc. of Certified Public Accountants, SME Consultancy Centre, Marketing Management Consultancy Centre, and NEU. Introduction of shindanshi is one of the measures proposed by Japan to promote supporting industries in VN. SlidesV (PDF601KB)

Workshop on " the impacts of high inflation and economic downturn on poverty incidence in Vietnam"

On 15 July 2009, VDF invited Mr. Nguyen Viet Cuong, a lecturer of NEU and a researcher at Indochina Research and Consulting (IRC), to share his findings on the impacts of high inflation and economic downturn on poverty incidence in Vietnam. This was the fifth seminar in the 2009 VDF Seminar Series on Social Issues in Vietnam. Using micro-simulation techniques with the household panel data from the Vietnam Household Living Standard Surveys in 2002, 2004, and 2006, the presentation showed that the rapid poverty reduction that Vietnam experienced over the past decade might be constrained by the recent unfavorable macroeconomic conditions, i.e. high inflation and economic slowing down. The author argued that, in addition to the effort for resuming economic growth, controlling inflation would be an important policy so as to continue reducing poverty incidence. Various comments and questions on simulated results and policy implications were discussed between participants and presenter. SlideE (PDF175KB) Paper (PDF543KB)

 Workshop on “Are the Vietnam Stock Markets Getting a Tough Valuation Again?”

On 14 July 2009, VDF held the workshop on “Is the  Vietnam stock market getting the tough valuation again?”. Mr Nguyen Quang Thuan, CEO of The StoxPlus Financial Media, showed and analyzed the Vietnam stock market in the influence of the market momentum factors like balance of payment, interest rate, foreign exchange rate,... In his opinions, these factors are creating positive signals to the Vietnam stock market, however in the coming period the market may still remain cool. Finally, he estimated the VN Index may reach a range of 522x – 565x from fundamental perspective and he drawed out some tentative strategies for investors from now to the end of this year. SlidesE

Workshop on Identifying Poverty lines for Vietnam

On 13 May 2009, VDF invited Mr. Phung Duc Tung, a researcher at Indochina Research and Consulting (IRC), to share his views on and estimates for poverty line in Vietnam. This was the fourth seminar in the 2009 VDF Seminar Series on Social Issues in Vietnam. His presentation showed that various poverty line definitions in Vietnam made it difficult for researchers and policy makers to have real status of poverty. As such, he suggested to update the poverty line every five years using a unified price for expenditure and cost of good basket, using regional and area price index to adjust regional and area poverty line via PPP, and using CPI to adjust poverty line accordingly to price changes. The participants provided a number of examples to share their views on poverty line measurements. Social protection policies for the poor were also lively discussed, as they were deeply related to the poverty definitions. SlidesV Paper

Workshop on Outline for the Development of Security Market Strategy toward 2020

On 12 May 2009, VDF held the workshop on “Outline for security market development strategy, 2010 – 2020”. Mr Nguyen Son, Director of Market Development Department from State Securities Commission, presented the outline of the market development strategy toward 2020. This outline draws 9 strategy orientations and 10 groups of solutions to develop and reorganize the Vietnam’s stock market in two periods: 2010-2015 and 2015-2020. People from Ministry of Finance, State Bank of Vietnam, National Financial Supervisory Committee and Vietnam Development Forum discussed about the roles and participation of related organizations in the strategy; priority of each work of the strategy; specifying and building quantitative targets of the strategy. Recommendations of the discussion will be added to the outline for Vietnam’s security market development, that will be submitted to Prime Minister for approval in 2010. SlideE SlideV

Workshop on Sustainable Livelihoods Interventions in Marine Protected Areas (MPAs) in Vietnam

On 15 April 2009, Mrs. Nguyen Giang Thu, Deputy Head, Department of Science, Technology and Environment, MARD made a presentation on Sustainable Livelihoods Interventions in Marine Protected Areas (MPAs) in Vietnam at VDF workshop. MPAs are considered to be one of the most effective management tools to mitigate marine biodiversity degradation and maintain a sustainable fishery and tourism development for coastal inhabitants. Currently, a “Master Plan of Vietnam MPA network to 2015 and vision to 2020” has been drafted and submitted by MARD to the government for approval. Up to now, 04 MPAs officially established. They included Nha Trang Bay MPA (2001), Cu Lao Cham MPA ( 2004), Phu Quoc MPA (2007) and Con Co MPA (2008).  Mrs. Thu presented some livelihood interventions for local people living in and around MPAs, such as environmental quality improvement, tourism development, fish sauce production, dried fish production, handicraft production, and agriculture development. These livelihood interventions could help to reduce the dependence of coastal inhabitants on marine resources. Participants at the WS shared the view that the conservation of natural resources in general and marine resources in particular should be more successful and sustainable if it could be a part of socio-economic development plan of each locality. Presentation

Workshop on Gender Division of Labor in Households in Vietnam

On 3 April 2009, our third 2009 Seminar Series on Social Issues in Vietnam was jointly held with the Institute of Population and Social Studies (IPSS) at NEU. Prof. John Knodel (University of Michigan) (photo, right) and Dr. Bussarawan Teerawichitchainan (Singapore Management University) (photo, left) presented their co-authored paper with two Vietnamese scholars about gender division of labor in Vietnamese households. They used different econometric approaches with data from the Vietnam Study of Family Change in 2003-2004 to pursue the research objective. The estimates indicated various differences in housework in terms of gender along with other cohort and regional factors. Participants discussed a number of questions on the survey, modeling and interpretation of the results. SlidesE Paper

VDF Annual Symposium on Financing Vietnamese Enterprises in the Post Inflation Era and under Economic Recession

On 20 March 2009, VDF and State Securities Commission (SSC) co-hosted an annual symposium on "Financing Vietnamese enterprises in the post inflation era and under economic recession". It was chaired by Prof. Nguyen Van Nam (Rector of NEU), Prof. Kenichi Ohno (VDF Director), and Dr. Vu Bang (SSC President). More than a hundred guests attended from research institutions, Ministry of Finance, Ministry of Investment and Planning, international organizations, enterprises, SSC, State bank, commercial banks and news agencies. VDF made two presentations on surveyed 20 banks and about 200 enterprises. The key findings discussed relating to credit accessibility and business of enterprises as well as banking business affected by monetary policy. Dr. Nguyen Son (SSC) proposed measures to stabilize the securities market and Mr. Nguyen Quang Thuan discussed the shift from equity offering to debt financing. The effectiveness of the current demand stimulus policy and other shortcomings of government responses were evaluated. SonHoiSlideE (PDF107KB)  SonHoiSlideV (PDF469KB)  TuHueSlideE (PDF99KB) TuHueSlideV (PD244KB) NguyenSonSlideE (PD1125KB)  NguyenSonSlideV (PDF1317KB)  NguyenThuanSlideE (PDF537KB)  NguyenThuanSlideV  (PDF738KB)

 JICA-UNIDO-VDF seminar on skill development

Workshop on willingness to participate voluntary social insurance in Vietnam

On March 13, in our second 2009 Seminar Series on Social Issues in Vietnam, Dr. Paulette Castel - an international consultant of social security policies for the Institute of Labour Science and Social Affairs (ILSSA) of MOLISA - presented her research exploring the willingness of people in participating in the voluntary social insurance scheme in Vietnam. She used a ordered-logit model to pursue the research with data from a survey in Nghe An in 2005. The estimates showed that most of workers in the informal sector could be able to participate in the scheme, but a variety of conditions should be considered. Participants of the workshop raised various questions on modeling and interpretation of the results. SlidesE; Paper

 Marine conservation strategy in Vietnam: Issues and policy implications

On 5 March 2009, Associate Prof. Dr. Nguyen Chu Hoi, Vice-Administrator of Vietnam Administration for Seas and Islands, MONRE made a presentation on Marine conservation strategy in Vietnam: Issues and Policy implications at VDF workshop. After an introduction of  potentials for the development of a marine economy in Vietnam, Dr. Nguyen Chu Hoi reviewed current status of marine resource exploitation and management of seas and islands in Vietnam. Vietnam has a long coastline of 3260 km and more than 1 mill. km2 of the marine exclusive economic zones. This provides Vietnam with abundant marine resources and biodiversity, but at the same time makes the country extremely vulnerable to natural disasters, including the sea level rise as a result of the global climate changes. Participants at the WS shared the view that marine resources in Vietnam are being considered as common resources and  natural resource base has been severely overexploited. Development activities and government management on this sector is still limited due to overlapping functions, which calls for an integrated management of marine and costal areas. This is a kick-off for a series of workshops on marine protection and development in Vietnam at VDF. SlidesV (PDF1.1MB).

Workshop on shindanshi system

On 13 February 2009, Mr. Toyoharu Kobayashi (JICA & METI's SME policy expert) and Mr. Takayuki Hayashida (JICA advisor) introduced Japanese shindanshi (SME consultants, SMEC) system at VDF workshop. Mr. Kobayashi reviewed history, registration scheme, and current situation of SMEC, and Mr. Hayashida shared his knowledge and viewpoints on the system. Established in 1960s, the system aimed to supply standardized capable consultants for SMEs in Japan. Since then, incentives to get shindanshi certifications have changed much, but it is undeniable that the system has contributed a lot to the development of Japanese enterprises. This system is transplanted in Thailand but did not work well because of differences in SME development level and economic conditions. The workshop's participants agreed that developing countries could  not apply the system directly, and some points should be taken into account, such as creation of incentives for stakeholders (bankers, SMEs, shidanshi themselves...). This was a kick-off workshop to study shindanshi system for Vietnam. VDF is going to dispatch a research group to Japan for further study on this issue next month.  KobayashiSlidesE (PDF491KB), HayashidaSlidesE (PDF49KB).

Vietnam's banking supervision and examination

On 12 February 2009, VDF held the workshop on Vietnam’s banking supervision and examination. Ms. Nguyen Thi Minh Hue (NEU lecturer/VDF researcher) presented the situation of Vietnam’s banking supervision based on 25 Basel’s core principles. At the workshop, she raised some limitations of the Vietnam’s banking supervision system relating to legal regulation, supervisory contents and techniques, and information requirements. In addition, invitees from State Bank of Vietnam, Deposit Insurance of Vietnam and National Financial Supervisory Commission gave their precious comments on the fact of cooperation as well as the sharing information mechanism among these organizations in banking supervision. In conclusion, all participants agreed that Vietnam’s banking supervision have not followed to Basel principles and needed to be improved with more detail recommendations. The discussion at the workshop is considered as the good direction for the researcher to investigate more about Vietnam’s banking supervision and find recommendations to enhance the banking supervision system in Vietnam. SlidesE (PDF84KB)  PaperE (PDF43KB).

  Industrial action plan methodology

On 20-1-2009, Prof. Kenichi Ohno (co-leader of VDF) gave a VDF workshop on alternative methods of drafting and executing industrial action plans. Proper industrial policy should have the structure of vision-strategy-action plan. Different countries adopted different ways to ensure effective implementation. The cases of Thailand, Malaysia, Vietnam, Zambia, and Ethiopia were discussed, and different action formats were explained. Linkage with budget, effective coordination mechanism, business participation, and enforceable monitoring were cited as key components. This presentation was originally requested by the Government of Ethiopia to review and improve their industrial policy.  SlidesE

WS on "the linkages between growth, poverty and inequality in Vietnam"

On 15 January 2009, VDF held the first workshop in the 2009 Monthly Seminar Series on Social Issues. Mr. Le Quoc Hoi (NEU lecturer/VDF researcher) share his findings on poverty, inequality, and economic growth in Vietnam at provincial level. The author estimated the impacts of poverty and inequality on economic growth using compiled aggregate data from various statistical sources for 61 provinces during 1996-2004. The results showed that inequality did not have significant impacts on provincial economic growth, and higher poverty led to lower economic growth. As such, the author argued that these issues should be carefully considered in development policies. Most of the comments focused on appropriateness of the model, chosen variables, and aggregate data, as they were determinants of the estimates and policy implications SlideE