|At the workshop.|
Loc highlighted the benefits at a workshop jointly held by the US Agency for International Development (USAID) and the VCCI in Hanoi on May 15.
He noted that the most important benefit is the State would withdraw its source from unnecessary public services, streamline its apparatus, and focus on its key function of institution building.
There has been growing participation of private firms in the sectors originally reserved for State-owned enterprises, including airports, seaports and transport infrastructure, aviation, electricity, healthcare, and education, the VCCI chairman added.
In the retail sector, State-run trading stores have been replaced by markets, supermarkets, and shopping malls.
Doan Tien Giang, a public-private partnership researcher at the USAID, said the private sector’s participation in public service provision, or outsourcing public services to private parties, will bring practical benefits like saving costs, promoting accountability, improving management capacity, using capital and equipment efficiently and enhancing service quality.
He also pointed out risks in the private sector’s supply of public services such as lower security, opaque bidding and procedures to choose contractors, and job losses.
In a recent survey conducted by the VCCI, private firms play the main role in supplying goods and services. However, some also voiced their concern about risks posed by the private sector’s involvement such as price hikes, loss of quality control, frauds and monopolies.
To choose fields to be outsourced to the private sector, Giang recommended several factors be considered, including the longevity of services, regulation and policy flaws, risks, ability to assess service quality and the possibility of changing contracts.
Chairman Loc called on State agencies to monitor the private sector’s engagement in public services to help improve public service efficiency.
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