Health sector reform who

Top exports

According to the Ministry of Industry and Trade, in the first two months of 2021, the export value of nine groups of products exceeded US$1 billion each, accounting for 73.8 percent of Vietnam’s total export value. Of these, the export value of phones and components reached US$9.3 billion, accounting for 19.2 percent of the total, a year-on-year increase of 22.8 percent.

Computers, electronic and optical products also significantly contributed to export growth. In the first two months of 2021, the production index of these products grew 21.2 percent compared with the same period last year. The manufacturing of communication devices, mostly phones and components, grew 22.9 percent. Specifically, 35 million mobile phones were manufactured, up 1.2 percent; phone component production reached VND95.4 trillion, up 55.7 percent. Major export markets of these products include the EU, the US, and China. Exports to China in the first two months of this year reached nearly US$2.5 billion, a year-on-year increase of 103.9 percent.

In 2010, phones and components accounted for 3.2 percent of Vietnam’s total export value. This increased six-fold to 19.5 percent in 2016 and has been maintained around 20 percent since then. In the first two months of 2021, these products topped the list of Vietnam’s exports to the United Arab Emirates (UAE), with value reaching US$551 million, a year-on-year increase of nearly 108 percent, accounting for two thirds of total export value.

Mobile phone manufacturing at VinSmart

Opening way for domestic firms?

Foreign investment in Vietnam in manufacturing phones and components has been increasing. While Apple’s major suppliers such as Foxcon, Luxshare, GoerTek, and Compal already have factories in Vietnam, the mobile giant keeps encouraging its suppliers to shift manufacturing from China.

The export value of Samsung’s phones and components grew sharply in the first two months of 2021. By the end of 2020, about 50 Vietnamese companies had become Samsung’s tier-1 suppliers. However, foreign firms keep importing input components for phone manufacturing in Vietnam.

In the first two months of this year, Vietnam imported US$3.64 billion worth of phones and components, a year-on-year increase of 74.6 percent. Domestic companies are expected to contribute to a resurgence in phone and component exports.

Do Thi Thuy Huong, member of the Executive Board of the Vietnam Electronic Industries Association, said that in the post-Covid-19 period, additional electronics companies with foreign direct investment (FDI) will move their manufacturing facilities to Vietnam, creating opportunities for Vietnamese businesses to supply them with components and accessories. “We want FDI projects in the electronics sector to create breakthroughs for Vietnamese companies to create domestic value added in exports to benefit Vietnamese consumers,” she said.

In February 2021, VinSmart, a member of Vingroup, launched three made-in-Vietnam smart phone models on the website of the leading US conglomerate AT&T. This development has encouraged Vietnamese companies to invest in manufacturing phones and components for export and boosted their confidence in their global competitiveness. Nguyen Thi Hong, General Director of the Mobile Division of the VinSmart Research and Manufacture Joint Stock Company, said that in 2021, VinSmart will concentrate on creating high-quality products for sale to the US market.

Lan Anh

To better understand this concept, VietNamNet talks with Dr. Nguyen Van Dang, an expert on public Administration and policy from the Ho Chi Minh National Academy of Politics.

Dr. Nguyen Van Dang. Photo: Pham Hai

The media is familiar with the concepts of corporate governance, urban governance, global governance. Is this the first time the documents of the Party Congress have used the “national governance” concept?

It is true that this is probably the first time the Party documents have mentioned the concept of “governance”. More specifically, in the Political Report of the 12th Party Central Committee presented at the 13th Party Congress, in the section “The key tasks and strategic breakthroughs of the 13th term”, the Party advocated: “Changing national governance in the direction of modernity and efficiency”.

This concept is also used with the same connotations in the “Lessons from experience” section of the 2016-2020 socio-economic report; Resolution of the 13th Party Congress; Socio-economic development strategy for the period 2021-2030. Thus, the concept of “national governance” has been used four times in the documents.

When did the concept of “governance” appear and what does it mean?

The concept of “governance” originated in the ancient Greek as “kubernan”, meaning control/guide. Later, Plato used the word with the connotation of “designing a ruling system”. In the Middle Ages the word “gubernare” appeared in Latin, which also implied to guide/control or rule through law. Until the 1970s, “governance” was still commonly used in the same meaning as “government”.

In the early 1980s, the concept of “governance” became more common and used with a broader meaning.

Government not only refers to the activities of the state, but also extends to non-state subjects. This diverse network of actors gradually reduces the notion of boundaries between units in government, between public – private sector, or domestic – international.

So far, there still exist different interpretations of the concept of “governance” among the sciences. In terms of solving common problems of the community, “governance” or “public governance” is generally understood as the establishment, application, and enforcement of “rules of the game”.

More specifically, it is a set of principles for collective decision-making in multidisciplinary contexts, and there is no formal system of control between them that governs the terms of the relationship between the subjects participating in the governance system.

The difference between “state management” and “national governance ”

What are the key features of national governance?

The first is the multi-subject feature. The governance system will include not only the government, laws, principles and administrative regulations and state agencies, but also private subjects and non-profit organizations, as well as the more active role of every citizen.

Therefore, the public interest is no longer the only basis for governance decisions. In the framework of a multi-subject relationship, the interests of different subjects must be respected. Consequently, policies or management decisions tend to be dominated by diverse interests, not just public interests.

Second, reduce the gap and narrow the public-private boundary. The governance system integrates administrative systems with market and non-profit mechanisms, thereby narrowing and blurring the boundaries between the state and society.

Third, the cooperation between partners will gradually replace the imposed relationship in order as in the traditional government model. Due to the participation of diverse subjects in governance relationships, the form of those relationships will gradually change to a horizontal relationship, which is more collaborative, cooperative, and equal.

Fourth, governance is interconnected – governance models and paradigms that include institutions and people at all levels of government as well as different policy areas, and are not limited by the local territory border.

So, what is the most fundamental difference between “state management” and “governance”?

Management, whether at the organizational, local or national level, always has a subject that controls relationships and decision-making (government, board of directors, administrators…). However, when it comes to governance, such a central subject does not exist.

The 13th National Party Congress. Photo: Pham Hai

Therefore, the most fundamental difference among management systems is that there will not be a single subject that can fully control the collective decision-making process in multi-subject governance relationships.

Good sign

How will the role of the government be in the national governance system?

Governance systems require the government to gradually adapt to its role of coordinating the differences in expectations and interests of subjects of governance. It also means that the government cannot easily impose its will on related parties as in a traditional governance model.

How do you evaluate the emergence of the concept of “national governance” in the documents of the 13th Party Congress?

First of all, I think it is a good sign because it shows the change in the Party’s perception. However, the limited use of this concept also proves a certain caution of the Party towards this new concept.

In your opinion, why is there such caution?

In my opinion, “governance” is a concept of Western origin so it reflects tradition and reality in Western societies. This concept, thus, will still be very strange to many Vietnamese people.

In addition, the tradition and reality of the political – administrative system in Vietnam and many East Asian countries in general are also very different from the West. Therefore, we cannot rush to use arbitrarily foreign concepts.

Building a national governance model

What is your opinion about the future of “governance thinking” in Vietnam?

We live in a rapidly changing and interdependent world. Therefore, since the late 1990s, management thinking has been an increasingly popular trend in the world.

At home, reforming the political – administrative system towards respecting and promoting the people’s mastery has been a consistent policy of the Party in many recent congresses.

The reality also shows the limitations of the state’s ability and resources in solving community problems. Therefore, we are witnessing the increasingly active participation of businesses, social organizations and individual citizens, working side by side with the government to solve collective problems.

What are the challenges in the process of building “national governance” in Vietnam?

“Governance” is an exotic concept so the first challenge is that we must define this concept associated with the actual context in Vietnam today. This has not been shown in the documents of the 13th Party Congress.

On that foundation, the next step is to build a national governance theory and model, which can catch the world’s movement trends and reconcile with the traditional and current characteristics of Vietnam.

I think that this is a theoretical challenge that the Party should be concerned about in coming years.

Hien Anh

MIT ranks fifth among THE’s best universities in 2021 and leads the world’s schools in technology training according to QS 2021 ranking. It offered the student financial support of $64,000 a year.

Passion for astrophysics

In childhood, Quan was curious about natural phenomena in the universe. “Why are there constellations?” “Where do shooting stars come from?” These were questions that Quan wanted to answer.

Quan scored first in the entrance exam for the math major class at the Hanoi-Amsterdam High School for the Gifted, and the exam for the chemistry major class at the High School for the Gifted in Natural Sciences.

The great achievements were why Quan’s friends called him superman.

Le Manh Cuong, his physics teacher, discovered Quan’s special love for constellations in the sky. Though astronomy and astrophysics was not a subject in the general education program, he decided to help Quan learn about it.

Later, it was the teacher who sent Quan to the national astrophysics team to attend the international competition. In 2019, Quan attended the International Olympiad on Astronomy and Astrophysics (IOAA) and won a gold medal with maximum scores.

After returning from the international competition, Quan began seeking an environment where he could study and conduct research.

He believed that leading schools such as MIT and Princeton would offer favorable conditions for students’ creativity, learning and promotion of their abilities, especially with the advice of leading professors in their fields.

Quan applied to the two schools because they are among a small number of schools that choose international students based on their abilities, not on candidates’ financial capability.

Quan had a strong profile when applying for the schools. The physics major had a 1600/1600 SAT and 8.0 IELTS. He twice won first prize in physics at the national competition for excellent students, when he was in the 11th and 12th grades.

Quan attended many national and international competitions and won a lot of medals, including the gold medal at the 2018 International Youth Science Olympia and gold medal at 2019 IOAA, gold medal at 2020 European Physics Olympiad.

The medals were not really made of gold, but from sweat during training, according to Quan. He said hopes he will have the chance to attend the International Physics Olympiad this year.

Thuy Nga – Huu Chanh – Phuong Thu