General Secretary To Lam emphasized: "Of the three biggest bottlenecks today—institutions, infrastructure, and human resources—institutions are the bottleneck of bottlenecks."
Institutional bottlenecks are the fundamental obstacle that needs to be addressed first in order to open up space for other solutions.
Let's take the Long Thanh airport project, a key national project, as an example. The Long Thanh International Airport project was approved in 2005, but the first phase of construction only officially began in 2021. The project was delayed for decades due to institutional bottlenecks; it had to go through multiple rounds of approval from various agencies at both the local and central levels. Each change or adjustment to the project required additional time for approval.
The land clearance and resettlement process for thousands of households has faced numerous obstacles due to a lack of consensus and coordination among agencies. The Ministry of Transport , the Ministry of Finance, the Ministry of Planning and Investment, along with local authorities, all play a role in the project's implementation, but ineffective coordination has led to a prolonged and inconsistent process.
These institutional bottlenecks have slowed project progress, increased costs, and reduced the project's economic efficiency.
Lack of transparency and accountability causes institutional bottlenecks.
First, there are outdated regulations. Laws and policies that are not updated to reflect current realities can lead to inefficiency, as they may no longer be relevant to social, economic, or technological changes.
Secondly , the administrative apparatus and processes are overly complex. Overlapping management and complicated approval procedures create delays, making it more difficult to respond quickly and effectively to urgent needs. A prime example of a complex administrative apparatus causing institutional bottlenecks is the approval process for construction investment projects in Vietnam.
A prime example of a rigid legal framework causing institutional bottlenecks is the regulations related to land and land clearance in Vietnam. Photo: Hoang Ha
Specifically, to implement a construction investment project, businesses must go through many approval stages from various agencies such as the Ministry of Planning and Investment, the Ministry of Natural Resources and Environment, the Ministry of Construction, the Ministry of Public Security, and local authorities. Each approval step includes many smaller procedures, requiring dozens of different permits and documents.
As a result, businesses have to wait a long time to complete the procedures. Each step requires different assessment and approval times, leading to project delays, increased investment costs, and reduced efficiency. The lengthy licensing process forces investors to bear additional management, administrative, and interest costs during the waiting period, thereby increasing the overall project cost.
Thirdly , there is a lack of coordination among agencies. When government agencies do not cooperate effectively, their efforts may be duplicated, conflicting, or counterproductive, leading to fragmentation and inefficiency in operations.
A prime example of ineffective coordination among agencies causing institutional bottlenecks is the urban railway project in Hanoi and Ho Chi Minh City. Specifically, urban railway projects in both Hanoi and Ho Chi Minh City, including the Cat Linh - Ha Dong line (Hanoi) and the Ben Thanh - Suoi Tien line (Ho Chi Minh City), have faced numerous difficulties due to a lack of coordination among agencies from the central to local levels and relevant ministries such as the Ministry of Transport, the Ministry of Finance, and the Ministry of Planning and Investment.
Fourth , a rigid legal framework. Strict, inflexible regulations that lack adjustments tailored to specific cases can hinder innovation and limit solutions to unique or emerging problems.
A prime example of a rigid legal framework causing institutional bottlenecks is the land and land clearance regulations in Vietnam. The current Land Law strictly regulates land use rights, compensation procedures, and resettlement when the State reclaims land, but lacks flexibility in specific cases.
Fifth , a lack of transparency and accountability. A lack of mechanisms for transparency and accountability can lead to public institutions operating inefficiently or corruptly, slowing progress and eroding trust.
A prominent example of a lack of transparency and accountability causing institutional bottlenecks is the management and use of public funds in some large-scale public investment projects. In many public investment projects, such as large-scale highway or public hospital projects, there is often a lack of transparency regarding the use of funds and a lack of accountability from the implementing entities.
Sixth , lack of resources and capacity. A shortage of trained personnel, modern technology, or necessary funding can severely limit an agency's ability to effectively implement and apply policies.
Seventh , resistance to change. Stagnation in systems, where there is an unwillingness to adapt to new methods or improve existing processes, often leads to institutional bottlenecks, especially in organizations that resist reform.
Solutions to remove institutional bottlenecks
Updating and improving legal regulations. Regularly reviewing, updating, and adjusting laws and regulations to suit socio-economic development practices, especially in emerging fields such as technology and the digital economy. This helps make policies more flexible and keeps pace with global trends.
Simplify the administrative apparatus. Streamline processes and reduce unnecessary procedures, while clearly delegating authority to agencies to increase efficiency. Apply international standards on public administration to optimize the administrative apparatus.
Enhance coordination among agencies. Establish inter-sectoral and inter-agency coordination mechanisms, and encourage information sharing and seamless collaboration in handling tasks. Utilize information technology systems to link and manage common activities, facilitating easy communication and coordination among agencies.
Ensure flexibility within the legal framework. Develop mechanisms that allow for flexible application in certain special cases and appropriate exceptions to handle specific situations. Regulations should have room for maneuver, allowing local authorities or sectors the right to self-regulate within permissible limits.
Ensuring transparency and accountability. Enhancing the public disclosure and transparency of information regarding key processes and decisions, particularly those related to budgets and public projects. Establishing independent oversight mechanisms and effective evaluation systems to ensure accountability of agencies and individuals.
Encourage innovative thinking and promote digital transformation. Build an organizational culture that is ready for change, encourages innovation, and motivates employees to apply digital technology to their daily work. Management units need to be pioneers and proactive in improving working methods, using digital data and online platforms to enhance efficiency.
The aforementioned solutions will help remove institutional bottlenecks, creating conditions for the system to operate efficiently and flexibly, and to promptly meet the socio-economic development needs of the country in the new era - the era of national progress.
Vietnamnet.vn
Source: https://vietnamnet.vn/nhung-quy-dinh-lam-can-tro-su-doi-moi-2371493.html
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