Examples of Action Research

Improving Economic Governance at the Provincial Level

The Vietnam Competitiveness Initiative (VNCI) and Vietnam Chamber of Commerce and Industry (VCCI) conducted a research study on provinces’ quality of local economic governance in support of private sector development.  The study was meant to identify areas where provinces could improve their business environment. VCCI started the first survey of private firms in 2005, asking them to provide their assessment of provinces according to various indicators related to business environment for the private sector, such as entry costs, access to land, transparency and accountability, etc. 

The Provincial Competitiveness Index ranks 64 provinces in Vietnam based on a composite figure of ten sub-indices, controlling for geographical characteristics and infrastructure.  The results were released at workshops in Hanoi and Hochiminh City, in collaboration with the Saigon Times.  This was the first time there was a systemic chance for private businesses to voice their perceptions about the quality of business environments throughout the country and to provide local authorities with feedback. The success of the initial survey has meant that it continues until now.   

Outcomes of the research

The research project caught significant media attention and provided uncomfortable reading for provinces at the lower end of the index. A series of meetings were organised by various provinces after the release of the PCI, reviewing local governance and suggesting immediate reforms. VCCI and VNCI were invited by provinces to deliver diagnostic presentations with detailed indicators, and best practices from other provinces in Vietnam. Immediate reforms were implemented in a number of areas including deployment of one-stop shops and reducing the cost of market entry for private firms. In an attempt to improve transparency and for provincial leaders’ to receive feedback, participatory meetings were held with businesses on a regular basis across a number of provinces.   Other donors working in local economic development also adopted the PCI as a tool to support reform initiatives.

Key Success Factor
The success of the research in achieving policy change could be attributed to a number of factors including:

• The PCI was based on the premise that provinces had a natural tendency to compete with each other. Making public and ranking the provinces through an index resulted in a greater motivation to trigger reform that were more business friendly.
• VCCI as a mass organisation representing businesses across the country was bought in as a partner to support the survey. This not only allowed wide dissemination through its nationwide network but more importantly brought credibility and standing to the PCI.
• A well orchestrated media campaign which disseminated the results widely throughout many different channels brought about widespread public interest and further added pressure to support reform.
• The research showed that by changing a few policies immediate results can be seen, thus encouraging provinces to carry out further reforms.
• By providing easy to understand evidence based research through a credible source and a widespread media campaign that increased public perception and pressure for change, there was significant support and buy-in from the many of the provincial People’s Committees.  Armed with this support and the need to be seen to be doing some form of action the Departments of Planning and Investment helped advance the reform measures.