Trade and Private Sector Development
Expansion of international trade and private sector development can lead to long-term economic growth and human development. UNDP recognizes that inclusive and equitable globalization, as well as the creation of transparent policies and regulations to encourage locally-led private sector development can help to alleviate poverty
Viet Nam is presently at a critical stage in its transition towards a fully developed market economy. In order to further stimulate economic growth and accelerate private and foreign sector development, the Prime Minister has called for the development of two new laws, the new Enterprise Law and the Investment Law. Ideally, this new structure will add uniformity to Viet Nam’s legal framework and level the playing field for all economic actors in the country. The laws will also be a determining factor in Viet Nam’s integration into the global economy, as required by the commitments under AFTA, APEC, the Viet Nam-US Bilateral Trade Agreement, and its eventual membership in the WTO. All of these factors point towards a period of intensive private sector growth and trade liberalisation in Viet Nam during the next five years.
UNDP Programme Priorities and Strategy
The point of departure for UNDP’s engagement in the area of trade and private sector development is that Viet Nam’s economy is still in transition and action needs to be taken to promote incentives for increased investment and trade, and capacities to respond to the social consequences of global integration. Towards this end, UNDP seeks to support projects and programmes that can contribute to the:
- Improvement of the implementation of the Enterprise Law through streamlining the regulatory framework and major factor markets and through strengthening the capacity of the government and private actors at both national and local levels;
- Development of the new Enterprise Law and Investment Law to further a uniform legal framework and level playing field for all economic actors in Viet Nam and facilitate better integration into the world economy;
- Establishment of a coherent legal framework to meet international obligations, promote trade and protect legitimate domestic interests from the impact of integration;
- Formulation of transparent policies on integration that include strategies for trade liberalisation, export development and promotion, and ensure effective protection of the poor.
Serviceline: Globalisation Benefiting the Poor (Poverty Reduction Practice)
VIE/01/004 Integration Study
VIE/01/012 Exchange of Economic Development Policy Lessons Viet Nam – China
VIE/02/009 Capacity Strengthening to Manage and Promote Trade in Services in Viet Nam in the Context of Integration
VIE/03/007 Strengthening Capacities for Multilateral Development Diplomacy
Project: Private Sector Development (Poverty Reduction Practice)
VIE/01/025 Institutional Reform for Business Development