66113 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM An Administrative Toolkit for Provinces Investment Climate Advisory Services | World Bank Group THE WORLD BANK In partnership with Australia, Finland, Ireland, the Netherlands, New Zealand and Switzerland About the Investment Climate Advisory Services of the World Bank Group The Investment Climate Advisory Services of the World Bank Group helps governments implement reforms to improve their business environment, and encourage and retain investment, thus fostering competitive markets, growth and job creation. Funding is provided by the World Bank Group (IFC, MIGA and the World Bank) and over fifteen donor partners working through the multi-donor FIAS platform. The findings, interpretations and conclusions included in this note are those of the authors and do not necessarily reflect the view of the Executive Directors of the World Bank Group or the governments they represent. SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM An Administrative Toolkit for Provinces Hanoi, May 2011 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM Disclaimer IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. This toolkit was commissioned by IFC through its Advisory Services in East Asia and the Pacific, in partnership with CIEM and VCCI. CIEM, the Central Institute for Economic Management, is a national institute under the direct authority of the Ministry of Planning and Investment. Its functions are to undertake research and put forward proposals and recommendations on economic laws and regulations, policies, planning and management mechanisms, business environment and economic renovation. In addition to research, it gives training and re-training to economic management staff and provides consultancy services in accordance with laws and regulations. VCCI, the Vietnam Chamber of Commerce and Industry, is a national organization that assembles and represents the business community, employers, and business associations of all economic sectors in Vietnam. The mission of VCCI is to protect and assist business enterprises, to contribute to the socio-economic development of the country, and to promote economic, commercial, and technological cooperation between Vietnam and other countries. This toolkit is for reference purposes. The conclusions and judgments contained in this document should not be attributed to, and do not necessarily represent the views of, CIEM, VCCI, and IFC or its Board of Directors or the World Bank or its Executive Directors, or the countries they represent. IFC and the World Bank, CIEM and VCCI do not guarantee the accuracy of the data in this publication and accept no responsibility for any consequences of their use. 2 CONTENTS CONTENTS ACKNOWLEDGMENTS ........................................................................................7 FOREWORD.........................................................................................................8 INTRODUCTION.................................................................................................11 ABBREVIATIONS ................................................................................................13 PART 1 OVERVIEW OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS ............................................................................15 1 Background ............................................................................................15 1.1 Access to land in IZs, EZs and EPZs ..................................................15 1.2 Access to land outside IZs, EZs and EPZs..........................................16 2 Some Current Issues in the Procedures Related to Business Access to Land ......20 3 Recent Public Administration Reforms in Business Access to Land...........27 PART 2 TOOLS OF ANALYSIS .........................................................................................31 1 Workflow Analysis ..................................................................................31 2 Procedural Mapping................................................................................34 3 Analysis of Document Requirements .......................................................42 4 Contact Point Analysis.............................................................................44 5 Time Studies ...........................................................................................47 PART 3 TOOLS FOR ADMINISTRATIVE REFORM..............................................................51 1 One-Stop Shop Approach .......................................................................52 1.1 Expectations of a Best Practice One-Stop Shop................................52 1.2 Types of One-Stop Shop Structures .................................................59 Multi-Agency One-Stop Shop..........................................................60 Lead Agency One-Stop Shop...........................................................65 1.3 Some Further One-Stop Shop Considerations..................................68 2 Parallel Processing ...................................................................................69 2.1 What Is It? ......................................................................................69 2.2 Some Local Examples of Parallel Processing in Land Access and Development Permits ......................................................................72 2.3 Some Further Considerations on Parallel Processing ........................77 3 Fast-Track for Simpler Projects.................................................................78 4 Permit Review Meetings ..........................................................................82 3 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM 5 Electronic Permit Systems ........................................................................87 5.1 Basic Features of Permit Tracking Systems .......................................88 5.2 Intermediate Features of Permit Tracking Systems ...........................90 5.3 Advanced Features of Permit Tracking Systems ...............................91 5.4 Costs of Permit Tracking Systems ....................................................92 6 Provision of Information ..........................................................................93 6.1 Key Components in the Development of a Communications Strategy ...94 6.2 Posting Information at the Office....................................................................97 6.3 Provision of Information via Printed Materials................................100 6.4 Dissemination of Information via a Website...................................113 7 Standardization and Simplification of Documentary Requirements.........117 7.1 Standardized Documents and Dossiers ..........................................117 7.2 Use of Common File and Document Identifiers..............................126 8 Customer Service ..................................................................................130 8.1 What do Customers Expect? .........................................................130 8.2 Essential Elements of Customer Satisfaction ..................................131 Customer-Centered Service Approach...........................................131 Important Customer Service Skills .................................................131 8.3 Citizen’s Charter ....................................................................................133 9 Monitoring and Evaluation ....................................................................141 9.1 Components of a Good Monitoring and Evaluation System...........141 9.2 Measurement Indicators................................................................146 9.3 Evaluation Phase ...........................................................................148 Post-Initiative Assessment ......................................................................148 Post-Implementation Assessment ..................................................149 CONCLUSION..................................................................................................150 REFERENCE .....................................................................................................151 4 LIST OF BOXES LIST OF BOXES Box 1: Some Common Procedures for Business Access to Land outside IZs, EZs and EPZs ..................................................................................17 Box 2: Inconsistencies Exist in Regulatory Systems ...........................................24 Box 3: Administrative Time Studies in Nigeria..................................................47 Box 4: Summary of Factors Influencing the Success of One-Stop Shops...........52 Box 5: Hong Kong Warehouse “One Stop Centreâ€? and Expedited Permit Procedure ............................................................................................56 Box 6: One-Stop Shop Facilities.......................................................................59 Box 7: The Multi-Agency One-Stop Shop in Thai Nguyen Province ..................62 Box 8: The Multi-Agency One-Stop Shop in Quang Ninh Province ...................63 Box 9: The Multi-Agency One-Stop Shop in Hai Duong Province .....................64 Box 10: The Lead Agency One-Stop Shop in Ba Ria-Vung Tau Province .............66 Box 11: The Economic Development Office in Ninh Thuan Province ..................67 Box 12: Parallel Processing in Bac Ninh Province................................................72 Box 13: Parallel Processing in Thua Thien-Hue and Binh Dinh Provinces.............74 Box 14: Parallel Processing in Ba Ria-Vung Tau Province ....................................76 Box 15: Expedited Permits in the City of Toronto, Canada.................................80 Box 16: Hong Kong “Minor Worksâ€? Program ...................................................81 Box 17: Role of the Construction Plan Review Meeting in Singapore .................84 Box 18: Plan Review Meetings in the US ...........................................................86 Box 19: Enhancing the One-Stop Shop with Permit Tracking System for Building Permits in Nashville, Tennessee (US) .....................................................89 Box 20: Electronic Submissions in Singapore .....................................................91 Box 21: Tailoring the Information to the Needs of the Audience .......................96 Box 22: Application for Approval in Principle of an Investment Project, Thua Thien-Hue Province .............................................................................117 Box 23: Instructions for Required Content of Site Plans, Ludlow Town, Massachusetts (US) ............................................................................119 Box 24: Standardized Application Contents: Land Grading Permit, Sonoma County, California (US).......................................................................121 Box 25: Receipt of the Application Dossier, Ba Ria-Vung Tau Province.............123 Box 26: Inter-Agency Application Processing Control Sheet in Ba Ria-Vung Tau Province...................................................................125 Box 27: Creating the Common File Identifier...................................................127 Box 28: Use of Project Codes in Thua Thien-Hue Province ...............................127 Box 29: Simple System of Naming Conventions for Technical Documents .......129 Box 30: Practices Recommended and Not Recommended when Dealing with Customers .........................................................................................132 Box 31: Customer Contact Charter, London Borough of Sutton, the United Kingdom (2007/2008)........................................................................137 Box 32: Customer Satisfaction Survey regarding the Quality of the Public Administrative Services, Danang City..................................................139 Box 33: Customer Survey Questionnaire, Ho Chi Minh City.............................143 Box 34: Introduction of Standard Cost Model .................................................147 5 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM LIST OF FIGURES Figure 1: Overall Workflow for Business Access to Land in a Locality ................22 Figure 2: Variation among Localities, from the Site Introduction to the Granting of Construction Permits ....................................................................32 Figure 3: Procedural Map of the Site Survey/Site Introduction in a Locality .......36 Figure 4: Document Requirements in Different Processes .................................43 Figure 5: Contact Points for Investors to Complete the Entire Process for Land Access and Development Permits in a Locality prior to Process Re-Engineering...................................................................................45 Figure 6: Contact Points for Investors after the Process Has Been Re-Engineered ....46 Figure 7: One-Stop Shop Basic Workflow ........................................................52 Figure 8: Multi-Agency OSS for Land Access and Development Permits outside IZs, EZs and EPZs in Vietnam .............................................................61 Figure 9: Lead Agency OSS for Land Access and Development Permits outside IZs, EZs and EPZs in Vietnam .............................................................65 Figure 10: Identification of Targets for Parallel Processing ..................................71 Figure 11: Implementation of Parallel Processing ...............................................71 Figure 12: S Figure 13: The PTS System Serves Customers and Service Providers....................88 Figure 14: Construction E-Services in Singapore.................................................93 Figure 15: Things to Be Avoided when Posting Information ...............................98 Figure 16: Location of a Sign Post to Guide Investors to the One-Stop Shop, Ba Ria-Vung Tau Province....................................................................99 Figure 17: Workflow Map Posted at the One-Stop Shop, Thai Nguyen Province .99 Figure 18: Handbook Guide to the Process and Procedures on Land Access and Development Permits outside IZs, Bac Ninh Province .....................102 Figure 19: Handbook and Leaflet Guide to the Process and Procedures on Land Access and Development Permits, Thua Thien-Hue Province ...107 Figure 20: Booklet on the Process and Procedures for Implementing Investment Projects outside IZs, EPZs and Hi-Technology Zones, Ba Ria-Vung Tau Province.......108 Figure 21: Leaflet Guide to Process and Procedures on Land Access and Development Permits outside IZs, Bac Ninh Province .......................111 Figure 22: An On-Line Licensing Service Web Page Interface, Singapore ..........114 Figure 23: A Web Page in the Business Portal of the Economic Development Office, Ninh Thuan Province ............................................................115 Figure 24: The Business Portal of Dong Nai Province ........................................116 Figure 25: Seven Steps to a Citizen’s Charter with Service Standards ..............136 Figure 26: Components of a Good M&E System ....................................................141 Figure 27: When to Measure Simplification .....................................................149 6 ACKNOWLEDGMENTS ACKNOWLEDGMENTS This toolkit is the result of a joint collaboration between the Central Institute for Economic Management (CIEM) and International Finance Corporation (IFC). The Vietnam Chamber of Commerce and Industry (VCCI) provided invaluable input regarding provincial best practices of business environment reform identified through the development and dissemination of the Provincial Competitiveness Index (PCI) and significant efforts in promoting the application of best practices to improve the provincial business environment. This toolkit was prepared by Phan Duc Hieu of CIEM, Pham Ngoc Linh of Management Consulting Group (MCG), Huynh Mai Huong of IFC and Stephen Butler of the University of Chicago, the United States and also an IFC international advisor under the supervision of Nguyen Dinh Cung, Vice President of CIEM and Nguyen Van Lan, Vietnam Projects Manager, Investment Climate Advisory Services, IFC Mekong Region. The authors would like to acknowledge the Provincial People’s Committees and Departments of Planning and Investment, Natural Resources and Environment, Construction and Home Affairs of IFC client partners Bac Ninh, Binh Dinh and Thua Thien-Hue provinces for their close cooperation to implement IFC’s provincial land simplification project. The practical experiences of these three provinces provided key material for this toolkit. Sincere thanks must also be given to the leadership, managers and officers of the People’s Committees and Departments of Planning and Investment, Construction, Natural Resources and Environment of Ba Ria-Vung Tau, Binh Duong, Dong Thap, Hai Duong, Long An, Quang Ninh and Thai Nguyen provinces. Their great support and cooperation during the authors’ field visits made it possible for them to better understand the process and practices for business access to land in these provinces. The authors gratefully acknowledge Nguyen Phuong Bac, Deputy Director, Department of Planning and Investment, Bac Ninh Province; Cao Van Ha, Deputy Director, Department of Construction, Bac Ninh Province; Phuong Tien Tan, Deputy Director, Department of Planning and Investment, Cao Bang Province; Nguyen Thanh Hai, Deputy Director, Department of Planning and Investment, Long An Province; Nguyen Van Minh, Secretary General, Vietnam Real Estate Association; Nguyen Thanh Hai, Manager of the Planning Division, Department of Planning and Investment, Binh Dinh Province; Nguyen Van Hoan, Manager of the Construction Materials and Quality Control Division, Department of Construction, Bac Ninh Province and Dau Anh Tuan, Deputy Manager of the Legal Department, VCCI for their invaluable comments and input. The authors wish to thank CIEM’s Dinh Trong Thang and Unicom’s Vu Huu Manh for their contributions to the first draft version of the toolkit. Sanda Liepina, Regional Business Line Leader, Investment Climate Advisory Services, IFC East Asia and Pacific, Ivan Nimac, Jonathon Kirkby and Charles Schneider of Investment Climate Advisory Services, IFC East Asia and Pacific are also acknowledged for their support of the land simplification project. 7 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM FOREWORD Experience shows that investors must go through dozens of different procedures to obtain various types of official permits such as investment certificates, land use rights certificates and construction permits for business start-up, operation and expansion phases. The number of these certificates and permits increases with the pace of investment growth and business expansion. Therefore, a transparent, equitable and predictable administrative process and procedures for land access and development permits is critical to promote business growth and develop national and local economies. Perhaps that is also a key reason why many institutions have developed land-related indexes to assess the business climate. For example, “Dealing with Construction Permitâ€? is one of the 10 indicators used by the World Bank Group to rank economies on the ease of doing business and the “Land Access and Security of Tenureâ€? is one of the sub-indexes of the PCI used by the VCCI and USAID/VNCI to rank the competitiveness of provinces in Vietnam on their economic governance for private sector development. The Vietnamese government has made big efforts to improve the business environment and has achieved encouraging results. Nevertheless, the process and procedures for land access and development permits remains complex and time consuming, and in many cases still takes months and even years to complete. Simplification of these continues to be one of the top priorities of the government’s reform agenda at central and local levels. In this context, IFC has cooperated with CIEM and VCCI to publish this toolkit, “Simplification of the Process and Procedures in Land Access and Development Permits in Vietnamâ€? with the objective of providing best practice references to provinces in their administrative process and procedure reform efforts for a better business climate. This toolkit is a collection of international and Vietnamese best practices identified during the many years of IFC, CIEM and VCCI providing advisory services to provinces in Vietnam to improve their investment climates. The toolkit introduces five tools for analysis and nine tools for administrative reform relating to land access and development permits. 8 FOREWORD I expect this toolkit to be a useful and practical reference point for provinces to improve their competitiveness and business environments and allow ministries and other central government agencies to fine-tune the underlying legal framework. Consultants, researchers and students may also find useful information in this toolkit for consulting work and studies. Hanoi, 16 May, 2011 Nguyen Dinh Cung, Ph.D Vice President Central Institute for Economic Management 9 INTRODUCTION INTRODUCTION In recent years, the Vietnamese government has made strong efforts to improve the overall business environment and simplify procedures related to land access and development to meet the needs of citizens and businesses. Various gaps in the existing legislative system have been reviewed and addressed, in particular under the framework of the Government’s Project 30 on administrative procedure simplification. Nevertheless, given the complex nature of this area, not only investors but also local authorities have found themselves in a predicament when undertaking the administrative process for land access and development permits. To complete the process, investors must still go through dozens of different procedures, obtain numerous types of certificates, permits and decisions, and work with People’s Committees, multiple government departments and agencies at local and national levels. Faced with these problems, many provinces have taken the initiative in harmonizing requirements and procedures related to land access and development permits and made it easier for investors to execute the procedures within the existing legal framework. These initiatives include the process re-engineering and adoption of the one-stop shop mechanism among related authorities described herein, which are important parts of this toolkit. The ongoing competition This administrative toolkit is a collection of between provinces in the reform steps that can be taken by localities to analyze process to increase transparency, their own administrative performance and simplicity and efficiency in the improve their performance by implementation administrative process for land of “best practiceâ€? ideas taken from access and development permits international and Vietnamese experiences. is positive impetus for local economic development. Therefore, learning about and implementing administrative reforms is an essential and practical need that will help cut costs for society. Taking this as a starting point IFC, in collaboration with CIEM, has developed and released “Simplification of the Process and Procedures in Land Access and Development Permits in Vietnam: An Administrative Toolkit for Provincesâ€?. 11 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM The aim of this toolkit is to help provinces learn from exemplary administrative reform models and best practices relating to land access and development permits. The toolkit is intended to help local governments learn from best practices at a low cost and avoid errors in implementing their own administrative reforms. In this regard, VCCI has provided invaluable input regarding business environment reform provincial best practices identified through the development and dissemination of the PCI and significant efforts in promoting the application of best practices to improve the provincial business environment. On the basis of local experimentation encouraged by this toolkit, national decision makers may obtain evidence to consider amendments to related regulations to provide for more efficient administrative procedures. The approaches and processes being adopted in a number of provinces such as Ba Ria-Vung Tau, Bac Ninh, Binh Dinh, Dong Nai, Hai Duong, Ninh Thuan, Quang Ninh, Thai Nguyen and Thua Thien-Hue are described in this book for reference purposes and are not meant as the “final wordâ€? on best practices. While these examples are useful and in many ways innovative, there may be even better models being developed in Vietnam today which we are not yet able to fully account for. Perhaps one beneficial result of the work reflected in this toolkit will be to encourage localities to seek and share more information on the topics covered herein. Moreover, in any reform effort, changes in the process only contribute to part of the success. The other part, which is the vital part, is contributed by the people that make the process work. Some processes may look very accommodating at first, but are not appreciated by investors because of the unprofessional manner and attitude of the staff receiving and processing applications. To account for that, apart from the reference models, the toolkit also introduces customer care standards, monitoring and evaluation tools designed for assessing the performance of the whole process and the people that keep the process running. The toolkit has the following main parts: Part 1. Overview of the process and procedures in land access and development permits: A discussion detailing the current picture and recent changes to procedures relating to investment, land and construction. Part 2. Tools of analysis: A discussion focusing on the basic analytical tools localities can use to analyze their own situation and plan for administrative improvements. Part 3. Tools for administrative reform: A discussion of selected sample approaches to one-stop shop and a coordinated process in land access and development permits at provincial level, with examples from domestic and international best practices. 12 ABBREVIATIONS ABBREVIATIONS DoC Department of Construction DoET Department of Education and Training DoF Department of Finance DoH Department of Health DoLISA Department of Labor, Invalids and Social Affairs DoNRE Department of Natural Resources and Environment DPI Department of Planning and Investment EDO Economic Development Office EIA Environment impact assessment EPZ Export processing zone EZ Economic zone GIS Geographic information system IZ Industrial zone LURC Land use rights certificate OSS One-stop shop PC People’s Committee PTS Permit tracking system 13 1 14 OVERVIEW PART 1 OVERVIEW OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS 1 Background In Vietnam, businesses may acquire land directly from the state and its agents, which include provincial and local governments, inside and outside industrial zones (IZs), economic zones (EZs) and export processing zones (EPZs), in the form of an allocated right of land use and a lease. Acquiring land outside the zoned areas often requires site clearance. 1.1 Access to land in IZs, EZs and EPZs Investors acquiring land inside IZs, EZs and EPZs do not often go through such complex procedures as acceptance in principle of the investment, evaluation and approval of detailed construction plans and land allocation, etc. The management board of an IZ, EZ and EPZ is typically the single contact point from which investors may seek information and help in fulfilling procedural requirements and monitoring the status of applications. This saves significant time to undertake the required administrative process. Depending on its designated role and authority, the management board may itself grant several types of certificates, permits and licenses, and point investors in the direction of the relevant authorities for other licenses that it cannot issue itself. Furthermore, investors also have access to “clearedâ€? land, i.e. site clearance has been completed and infrastructure is ready for use. While procedures to access land in designated zones are rather straightforward, land rental in these compounds is high. They are often only suitable for large domestic and foreign companies. To cover small enterprises and household businesses, many 15 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM provinces have developed industrial clusters. An industrial cluster1 is a designated zone used for small industry and handicraft development and its establishment is decided upon by the provincial People’s Committee (PC). In principle, land in industrial clusters should also be cleared and readily available for use. But in practice, many investors must undertake site clearance, a difficult process because it results in relocating people from their land and homes. 1.2 Access to land outside IZs, EZs and EPZs Compared to accessing land in IZs, EZs and EPZs, investors acquiring land outside these zones often go through more procedures, particularly the site clearance process, which may delay or prolong project implementation. Added to that, it will usually cost investors more time to travel back and forth among relevant authorities to complete the procedures. For example, investors have to deal with government authorities in charge of investment to undertake investment-related procedures, those in charge of land and environment and district/commune PCs for land and environment-related procedures, those in charge of construction for construction- related procedures and those in charge of specialized construction works for special purpose projects. IZ plan in Bac Ninh Province. Photo provided by Bac Ninh Province’s Department of Construction. 1 Under Decision No.105/2009/QD-TTg dated August 19, 2009, of the Prime Minister promulgating the regulations on management of industrial clusters. 16 OVERVIEW BOX 1 Some Common Procedures for Business Access to Land outside IZs, EZs and EPZs Investment-related procedures l Acceptance in principle of the investment and site introduction. The purpose is to get the relevant state agency’s (normally provincial PCs) acceptance to have the investment project initiated at a site chosen by the investor or one recommended by the authorities. The acceptance is in writing and gives the investor the greenlight to conduct a detailed site survey, develop a comprehensive project document and undertake other procedures. l Investment registration or evaluation for Investment Certificate. The purpose is to get the relevant state agency’s (currently provincial PCs) certification that an investment project has been registered and confirmation of incentives available for the project. The Investment Certificate is also the business registration certificate for foreign investors investing in Vietnam for the first time. Land and environment-related procedures l Evaluation and approval of Environment Impact Assessment (EIA). The purpose is to obtain the relevant state agency’s, currently provincial PCs or Departments of Natural Resources and Environment (DoNRE), evaluation of proposed environmental protection solutions for investment projects at location(s) approved by the provincial PCs. This procedure is applicable to investors with projects listed in the “List of projects subject to environmental impact assessmentâ€? (issued as an Attachment to Decree No. 21/2008/ND-CP, dated February 28, 2008 of the Government). l Acceptance of the environment protection commitment. The purpose is to obtain the relevant state agency’s (currently district PCs or authorized commune PCs) acceptance of the investor’s commitment to comply with prevailing environmental protection and natural resources preservation requirements. This procedure is applicable to investors with projects not subject to EIA. l Land recovery, land allocation/lease and conversion of land use purpose. The purpose is for an investor to receive from the relevant state agency (currently provincial PCs) an official allocation of land or a land lease or conversion of land use purpose to proceed with the approved project. l Land use rights certificate (LURC). The purpose is for an investor to obtain the relevant state agency’s (currently provincial PCs) acknowledgment of full user rights for the piece of land in line with the approved purposes. 17 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM Construction-related procedures l Provision of planning information. The purpose is for the relevant state agency (currently Department of Constructions (DoC), Departments of Planning and Architecture or technical divisions of district PCs) to provide investors with information related to land use, regulations concerning infrastructure systems, architectural design, safety, fire and explosion controls, environmental protection and other requirements. The information will help the investor prepare and implement the project in accordance with the approved zoning plan. l Planning license. The purpose is to obtain a license from the relevant state agency (currently provincial PCs or district PCs depending on decentralization) to conduct urban planning, develop a construction project proposal and carry out construction. A planning license is valid for no longer than 24 months, depending on the type of the construction work and the investor must obtain approval of the detailed construction plan before the license expires. l Evaluation and approval of detailed construction planning tasks and blueprints. The purpose is to obtain the relevant state agency’s (currently provincial PCs, DoCs or district PCs subject to decentralization and authorization) evaluation and approval of the detailed construction planning tasks and blueprints, which define target demographics, social and technical infrastructure, space organization and architecture of the entire planned area, distribution of social infrastructure relevant to the need of users, land use targets and architectural requirements for each land plot, placement of infrastructure networks and the boundaries of the land plot. 18 OVERVIEW l Consultation on the basic design (categories B and C)2. The purpose is to seek comments from relevant state agencies (currently DoCs or departments in charge of specialized works depending on each project3) on the project’s design which is completed during the preparation of the project proposal based on consideration of the relevance of the basic design against available zoning plans, linkage of infrastructure systems, application of norms, standards and any compulsory requirements related to the project. This will lay the groundwork for the next design steps. l Construction permit: The purpose is to get permission from the relevant state agency (currently DoCs or district PCs depending on decentralization) to start construction work in line with the approved construction design and detailed construction plan at the location allocated or leased by the state. 2 Under Item 6, Article 10, Decree No.12/2009/ND-CP dated February 12, 2009 by the Government on state management of construction projects, relevant state agencies to give comments on a basic design include: a) Relevant ministries in charge of specialized works for projects of national significance and category A. b) Relevant provincial line departments in charge of specialized works for projects of categories B and C. 3 That is: - Departments of Industry and Trade for mining, petroleum, power plant, power transmission grid, transformer station, chemical, industrial explosive, machinery engineering, metallurgy and other specialized industrial projects, except construction materials projects. - Departments of Agriculture and Rural Development for irrigation, embankments and other specialized agricultural projects. - Departments of Transport for transportation projects. - DoCs for construction projects in civil works, construction materials, urban infrastructure and other construction projects requested by provincial PC Chairpersons. - If projects integrate multiple types of structures, the lead department shall be one of the above- mentioned departments responsible for management of the structure critical to the project. 19 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM 2 Some Current Issues in the Procedures Related to Business Access to Land Experience and recent studies have indicated that inefficiencies exist in administrative procedures for business access to land. As a consequence, in many cases the expenditure of time and resources to complete the procedures discourages investors and lets some business opportunities slip. Current complaints regarding investment procedures include: First, the procedural workflow is too complicated and too many agencies are involved in the process. Depending on the requirements for different procedures or combination of procedures, the involvement (admission, feedback and approval) of different agencies from different levels, from the central government to ministries, provincial PCs, line departments and district/commune PCs may be needed. In many cases, the investor has to directly contact these agencies to get their acceptance, comments and approval in different forms as required by the administering agency or governing legislation. In certain cases, the investor may have to directly contact different units/divisions of the same agency to get further information, guidance and an explanation on the application it has lodged or to receive the outcomes. In other words, the investor often has to pay multiple visits to different agencies or different units within an agency to undertake various procedures. Second, overlaps exist in information declaration and application requirements between different authorities. Investors often have to prepare more application documents than are actually needed to meet administering authorities’ requirements. Investors are often ready to meet in full the government agencies’ requirements so their applications are not returned and outcomes are received as soon as possible. However, this approach is unlikely to promote much needed information sharing among related authorities and may leave room for unorthodox demands from public service employees. Sharing information between related government agencies will create a good practice conducive to the monitoring and auditing of investment projects by relevant authorities. For example, Figure 1 in a “process mapâ€? for a specific locality briefly describes the key steps in each procedural sequence, estimates handling times and identifies the person in charge (either the applicant, which is represented by orange boxes, or the administering agency, represented by blue boxes). The overall workflow in this locality indicates a 20 OVERVIEW complicated process in which investors will need to cover eight required “umbrellaâ€? or “motherâ€? procedural sequences and several “childâ€? sub-procedural ones to get all the decisions and permits from relevant authorities prior to starting a project. In this example, to undertake the site introduction (selection) procedure at the DoC (Column 1, Figure 1), the investor needs to be endorsed by each related department and local government at the district and commune levels prior to filing an application for site introduction with the DoC (the responsible agency for this procedure). This is essentially a “childâ€? procedure. As a consequence, the investor needs to accommodate the different requirements of all authorities, resulting in a longer process than necessary. The inefficiencies are: (i) the investor is requested to contact the responsible agency to understand the requirements for endorsement from related authorities — which authorities and which types of endorsement, (ii) the investor is requested to work with each and every related authority to receive the appropriate endorsement that the responsible agency needs and (iii) the investor is doing the job of the authorities (e.g. consulting related authorities). These inefficiencies exist mainly because of the lack of coordination and information sharing among related authorities. The overall workflow also shows the next procedure in which the investor obtains planning information (planning certificate), which also takes place at the DoC. Technically, this procedure can be undertaken together with the site introduction so the investor need not make repeat visits to the same agency. 21 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM FIGURE 1 Overall Workflow for Business Access to Land in a Locality 1. DoC 2. DoC 3. DoNRE 4. DPI Selection of Site Certificate of Planning Environmental Impact Investment Certificate Assessment Investor Investor Investor Investor 1-2 Gather information 1-2 Gather information 1-2 Gather information Determine the days and apply for the days and apply for EIA days and apply for investment site Planning Certificate Investment Certificate approval Commune & District PC DoC - OSS DoNRE - OSS DPI – International Economic Receive and review Cooperation Division 5-7 Ask for permission of 1 Receive and check 0.5 4.5 days PC at commune and day the completeness day the completeness of days Receive and review district level of dossiers dossiers the dossiers Investor DoC- Planning DoNRE-Environmental DPI - Director 1-2 Collect information 12 Management Division 10 Protection Agency (EPA) 0.5 Receive and check Receive and review Approve and submit days and apply for site days days day the appropriateness the appropriateness to PPC survey of the dossiers of the dossiers DoC - OSS DoC- Director Evaluation Panel PPC - Expert 1-2 Receive and check 1 5 Review and give 1-2 Approve the Receive and review days the completeness of day days opinions on the EIA days Planning Certificate the dossiers dossiers report of investors DoC- Planning Investor Investor PPC - Chairman Management Division 10 0.5 5 Revise the report as 2-3 Approve and grant Receive and check Receive the days day days requested and return days the Investment the appropriateness Planning Certificate to the EPA Certificate of the dossiers DoC - Director DoNRE - Director DPI – International Economic 1 0.5 Cooperation Division Approve the report Approve the day day Receive and return on site survey and EIA report the Investment submit to PPC Certificate to investor Provincial PC - Expert Investor Investor 1-2 0.5 Receive the 0.5 Receive and review Receive the approved days day approved day the dossiers Investment Certificate EIA report Provincial PC –Chairman 1-2 Approve the decision days for the selection of site Investor 0.5 day Receive approved decision Source: IFC/MCG diagnostic survey, 2008 22 OVERVIEW 5. DoNRE 6. DoF 7. DoNRE 8. DoC Land recovery, land Land pricing for Land use right certificate Construction Permit allocation and land lease land allocation/lease Investor Investor Investor Investor 1-2 Gather information and apply for days land recovery and land allocation/lease Gather information and Gather information and Gather information and apply for land pricing 1-2 1-2 days apply for Land Use Rights days apply for Basic Construction DPC (Land Clearance Council) of land allocation 5-10 Certificate, pay fees Design approval Organize a meeting with residents and land lease days living in recovered areas DoF – Pricing Committee DoNRE - OSS DoC – Appraisal Division 5-10 Investor + District’s Land Clearance Council Establish general land days Receive and review 1 Receive and review the 12-15 Approve the Basic compensation plan the completeness of day completeness of days Construction Design District/Provincial PC dossiers dossiers 1-2 Approve the general days land compensation plan DoF – Pricing Division DoNRE – Land Use Investor Investor Registration Division 1 14 1-2 Gather information and Apply for transfer of day Appraise days days apply for Construction land use purpose Appraise the dossiers the dossiers Permit 1-2 DoNRE Review the dossiers days and submit to PPC DoF DoNRE - Director DoC - OSS 5 PPC - Chairman 1 Approve and 1 Receive and review the Draft decision day day days Approve the decision submit to completeness of 5 – 12 days on price PPC dossiers 1 Investor day Apply for land recovery DoF - Director PPC - Expert DoC – Planning Approve the pricing 1-3 22 Management Division 4 DoNRE days Receive and review days schedule or submit Receive and appraise Review the dossiers the dossiers days to PPC the dossiers and submit to PPC 4 PPC - Chairman days Approve the decision PPC - Expert PPC - Chairman DoC - Director 1 Approve the decision 2 Receive and review day days Approve Construction 1 Investor for Land Use Rights Apply for land the dossiers Permit day Certificate allocation, land lease 0.5 DoNRE - OSS Receive and review the PPC - Chairman DoNRE – Land Use Investor day completeness of the dossiers 1 Registration Division 0.5 Pay fees and receive Approve the decision day day DoNRE – Planning Division Receive and return approved Construction 2-3 on price schedule LURC to Investor Permit days Receive and review the dossiers 0.5 DoNRE - Director Investor Investor day Approve and submit to PPC Receive decision on 0.5 day the price schedule Receive LURC 2-3 PPC - Expert days Receive and review the dossiers 2-3 PPC - Chairman ngày Approve the decision 0.5 Investor day Receive the approved decision Land Compensation Council Implement the compensation for land clearance 2 DoNRE days Land handover at field 1 DoNRE day Sign the land lease contract 23 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM Third, there are inconsistencies and even conflict as to when the procedure starts. Evidence reveals that government agencies and businesses are confused about the sequence and identifying of related procedures. Related legislation poorly defines when a procedure should start in the whole investment project process, as well as the sequence and order of related procedures in the entire process. Fourth, dispersion, cascading, overlaps and conflict still exist in the regulatory system. Business access to land procedures is prescribed in five main legal systems on investment, construction, planning, land and environment. This legislation system includes laws (Land Law, Investment Law, Construction Law, Urban Planning Law and Environmental Protection Law), implementing normative legislation issued by relevant central government agencies (decrees and circulars, etc) and those issued by sub-national authorities (decisions and guidelines, etc). Compliance is not always easy given the incompatibility issues and other factors. Dispersion, cascading, overlaps and conflict between related guidelines on a same issue are problematic and need to be addressed. BOX 2 Inconsistencies Exist in Regulatory Systems The main causes of the current issues with administrative procedures for business access to land are inconsistent laws and regulations, leading to varied interpretation and practices among localities. The problem of identifying the lead agency in the site introduction procedure is a case in point, with different laws providing different guidance: l Based on the Urban Planning Law, the focal point agency is the urban planning management agency4. l Based on the Land Law, the focal point agency is the one receiving applications for land allocation and lease5. 4 Article 70 of the Urban Planning Law No.30/2009/QH-12 dated June 17, 2009: “urban planning management agencies shall introduce construction investment sites to investors upon requestâ€?. 5 Clause 3, Article 122 of the Land Law: “Within a time-limit of 30 working days from the date of receipt of a complete and valid file, the body receiving the file shall be responsible for completing the introduction of the location [of the land]; making an extract of the cadastral map or of the cadastral measurements of the area of land to be allocated or leased; determining the rate of land use fees or land rent; performing procedures for land allocation or lease of land, issuing a certificate of land use rights in accordance with the applicable regulations and delivering a decision on land allocation or lease of land to the person being allocated or leased landâ€?. 24 OVERVIEW l Based on Decree No.69/2009/ND-CP, the focal point agency is the one receiving applications for investment6. Based on the national procedure inventory database (www.thutuchanhchinh.vn), this procedure is handled by DPIs in 12 provinces, by DoNREs in seven provinces, by DoCs in 22 provinces and by either DPIs or DoCs in a few provinces. The lack of clarity in the regulatory system has led to discrepancies in the interpretation and allocation of responsibility among provinces. Moreover, this nationwide procedure is not consistently regulated as an administrative procedure, which results in provinces issuing different implementing guidelines and requirements. In addition to the varied focal point agency and poorly defined roles among provinces, there may be many different agencies associated with an investment project, which may result in a longer processing time than outlined in the predefined timeline since the lead agency must consult related agencies to recommend a project site. As the processing time is lengthened, government agencies need more time to monitor and find solutions, while businesses must wait to see whether their projects are introduced to the right locations. Another example is the timing of the EIA procedure. This procedure is inconsistently provided for in the laws on environment, construction and investment in terms of when it should take place, leading to implementation differences between provinces.The laws suggest different interpretations: l Pursuant to the Environmental Protection Law, the EIA must be prepared in sync with the project feasibility study and approved prior to the investment licensing and granting of construction permits7. 6 Clause 1, Article 29 of Decree No.69/2009/ND-CP: “The investor or the body assigned with preparing an investment project submits the documentation at the local body receiving investment documentation. The body receiving the documentation shall be responsible for obtaining opinions from bodies relating to the investment project for consideration and introduction of a location according to their power, or submit to the provincial people’s committee for consideration and introduction of a locationâ€?. 7 Clause 2, Article 19 of the Environmental Protection Law: “The environmental impact assessment report must be prepared concurrently with the project feasibility studyâ€?. Clause 4, Article 22 of the Environmental Protection Law: “The projects stipulated in Article 18 of this Law may be approved and issued with an investment license, construction permit or operational permit only after approval of the environmental impact assessment reportâ€?. 25 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM l Pursuant to Decree No.21/2008/ND-CP guiding the implementation of several articles of the Environmental Protection Law, the EIA need not to be filed prior to the investment licensing, but only before the construction permit is granted8. l There is no reference in the investment, land and construction regulations about the need to conduct the EIA prior to the granting of Investment Certificates, land allocation/lease decisions and construction permits9. If the investor is required to undertake the EIA procedure prior to other complex procedures such as land-related procedures, there is a good chance that more costs will be incurred to produce an updated EIA after the land-related procedures have been completed since it may take several years to complete land-related procedures if problems with compensation and site clearance arise. By that time, the initially proposed technology in the project may have changed, causing environmental solutions to change to keep up with new technologies or changes in the project scale. Revisions or supplements to the EIA will consume more resources and time not only of the government agency, but also of the investor. If the investor fails to amend the EIA, any environmental protection commitment made by the investor in the approved EIA will only have face value and the project, if actually put in operation, will likely cause substantial environmental damage. 8 Clause 2, Section 5, Article 1 of Decree No.21/2008/ND-CP: “The time for submitting an environmental impact assessment report to be appraised and approved shall be regulated as follows: a) The owner of an investment project for exploitation of minerals shall submit an environmental impact assessment report for appraisal and approval before application for issuance of a mineral exploitation license. b) The owner of an investment project for construction works or items of construction works shall submit an environmental impact assessment report for appraisal and approval before application for issuance of a construction permit, except for the projects stipulated in paragraph (a) of this clause. c) Owners of investment projects not covered by paragraphs (a) and (b) of this clause shall submit an environmental impact assessment report for appraisal and approval before commencement of their projectâ€?. 9 Articles 43 to 47 of Decree No.108/2006/ND-CP stipulates application dossiers for investment licensing, but there is no reference to EIA approval. Clause 2, Article 125 of Decree No.181/2004/ND-CP on implementing the Land Law and Article 28 of Circular No.14/2009/TT-BTNMT providing details on compensation, assistance and resettlement and procedures of land recovery, allocation and lease stipulates application dossiers for land allocation and lease, but there is no reference to EIA approval. Article 20 of Decree No.12/2009/ND-CP on management of investment projects for construction works stipulates application dossiers for construction permits, but there is no reference to EIA approval. 26 OVERVIEW Finally, understaffing in terms of the number and quality of staff in administrative procedure units of relevant government agencies remains an issue to be addressed. In many provinces, OSS units lack competent personnel due to unreasonable and rigid personnel cost-cutting efforts, resulting in heavy workloads and delays in processing applications. s Æ¡, quá hạn. 3 3 Recent Public Administration Reforms in Business Access to Land In the past few years, central and local governments have made extensive efforts to address gaps and challenges faced by businesses in undertaking business access to land procedures. The Government’s Project 30 on simplifying public administrative procedures in various state management areas during 2007-2010 has made significant progress in reviewing the administrative regulations to address obstacles encountered by businesses and citizens. This project commenced on January 1, 2007. So far, it has completed an inventory of public administrative procedures at all government levels, provided open access to a national database of more than 5,700 public administrative procedures at http://www.thutuchanhchinh.vn, reviewed all procedures based on the criteria of legality, necessity and reasonableness and approved simplification resolutions. It has now moved on to the resolution implementation stage. On June 2, 2010, the Prime Minister signed Resolution No.25/NQ-CP on simplifying 258 public administrative procedures of priority to create better conditions for business operation and growth. These procedures are related to areas of urgent demand by businesses and citizens such as tax and customs, notary issues, health care, investment, construction andenvironment. The resolution urges the simplification of certain regulations by making the administrative process transparent, reducing the number of application dossiers and clarifying the procedural sequences. Under Resolution 25, the simplification plan for business access to land procedures includes: l Regarding Investment Certificates, clear definitions will be given with regard to the authority, mandates and responsibility of the agencies involved in the procedures, the lead agency for the Investment Certificate, consulted agencies that provide feedback to consulting queries and the decision-making authority, the principle of “silence is consentâ€? will also be defined. In addition, the composition of the Investment Certificate application will clearly define what papers are required and who is responsible for certifying and verifying 27 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM the papers, forms (e.g. financial capability reports), simplification (e.g. removal of the requirement for joint venture agreements), how many application packages and new regulations to allow equal validity of documents certified by corporate and public notaries. l Regarding EIA approval, the composition and number of documents in the EIA application will be reduced by clarifying that the requirements on investment reports, economic-technical reports or project proposal or equivalent documents as part of the EIA approval application will be the same as “those developed by the investor in the process of applying for the investment approvalâ€?, thereby saving applicants time and effort in preparing different sets of documents. In addition, for the environmental protection commitment certification procedure, the coverage of this procedure will be narrowed to include only professions, lines of business or sectors at risk of causing environmental pollution. l Regarding consultation on the basic design, the required steps for this procedure will be clearly described in chronological order, with the responsibilities of the state agencies and individual or corporate applicants elaborated in each step. The composition and number of “related legal documentsâ€? in the application will be clarified and new application forms and templates provided. l Regarding construction permits, the required steps will be clearly described in chronological order, with the responsibilities of the state agencies and individual or corporate applicants elaborated in each step. The composition and number of documents in the application will be clearly defined. Specific items in forms will be made simpler, including sections on the origin of land, entities/individuals reviewing the design, dismantling and relocation plans, etc. By early 2011, the Prime Minister had approved 24 other resolutions in the plan to simplify more than 5,000 procedures in all sectors.To implement these simplification plans, the National Assembly, Government and line ministries need to, depending on their respective powers, release official legal documents to amend, supersede or annul the procedures in line with the simplification resolutions. Much work remains to be done in the post-Project 30 era and it is also vital to make sure that the simplification resolutions really work as more powerful public administrative reform takes place to create positive and sustainable impacts on Vietnam’s investment climate. 28 OVERVIEW To fortify the reform process, the Government issued Decree No.63/2010/ND-CP, dated June 8, 2010, on the formation of a central procedure watchdog and a system of branch units at line ministries and provinces. On November 22, 2010, the Central Agency for Controlling Public Administrative Procedures was formed under the Prime Minister’s Decision No.74/2010/QD-TTg. The aim is to ensure close surveillance of existing procedures and those to be amended, renewed and added so that no illegal, irrational or importunate procedures may arise to trouble the public and businesses. In parallel to national level reforms, in the past years many provinces have proactively searched for their own solutions and initiatives, while remaining in compliance with the national legal framework, which will be introduced in Part 3. 29 2 30 TOOLS OF ANALYSIS PART 2 TOOLS OF ANALYSIS One of the objectives of this toolkit is to provide simple analytical tools and methodologies for localities to study their own situations and plan for improvements. This section discusses some simple analytical tools that help to clarify and visualize the flow of administrative processes and thereby identifying inefficiencies, duplications, bottlenecks and inconsistencies in the processes. The main tools described here are:  Workflow analysis  Procedural mapping  Documentary analysis  Contact point analysis  Time studies. 1 Workflow Analysis A simple workflow analysis is the start of any administrative study because: l It can identify the institutional relationships and major steps in a procedure that need to be studied in greater detail through procedural mapping (see the next section). l A workflow analysis may suggest inconsistencies in the process, or areas in which improvements can be made by application of concepts such as parallel processing (see Part 3). l It facilitates comparison of local practices and extraction of innovative ideas. 31 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM Workflow analysis prepared by IFC has identified significant variations among localities in carrying out the same procedures (see Figure 2). FIGURE 2 Variation among Localities, from the Site Introduction to the Granting of Construction Permits Bac Ninh (2008)10 Detailed Environmental Site Planning construction Basic Investment Land Land Construction impact LURC survey certificate plan 1/500 design Certificate allocation pricing permit assessment Thua Thien-Hue (2008)11 Acceptance Acceptance Environment Mineral Planning Investment Assessment Land to study the to impact Basic resources LURC Construction certificate Certificate of land allocation, project implement assessment design exploitation permit use needs lease the project permit Binh Dinh (2009)12 Acceptance Detailed Environment Land lease in principle Acceptance Basic Investment Land construction impact assessment/ (+ map extracts + Construction of the of project design certificate recovery lease agreement + plan Environment permit project site land use right certificate) (1/500) protection commitment 10 Based on IFC’s survey with local governments and businesses in 2008 under the provincial land simplification project between IFC and Bac Ninh Province. This process has been re-engineered under Decision No.165/2009/QD-UBND dated November 27, 2009 by the provincial PC on the process and procedures of business access to land outside IZs in Bac Ninh Province. 11 Based on IFC’s survey with local governments and businesses in 2008 under the provincial land simplification project between IFC and Thua Thien-Hue Province. This process has been re-engineered under the provincial PC’s Directive No.5809/UBND-XT dated December 31, 2010 on the process and procedures of business access to land outside IZs, EZs and new urban areas in Thua Thien-Hue Province. 12 Based on IFC’s survey with local governments and businesses in 2009 under the provincial land simplification project between IFC and Binh Dinh Province. This process has been re-engineered under the provincial PC’s Decision No.159/QD-UBND dated April 8, 2010 on the process and procedures of business access to land outside IZs and EZs in Binh Dinh Province. 32 TOOLS OF ANALYSIS Ba Ria — Vung Tau (2007 to present )13 Review and approval of the detailed 1:500 construction plan Acceptance in principle Agreement of Review and approval of Land allotment, lease, of the project project site Construction EIA/Registration of conversion Fire control (for projects in or preparation of permit if environment protection of land use purpose plan review unplanned areas) project site drawings required commitment (with site clearance completed) Investment registration, evaluation for investment certificate Thai Nguyen (2007 to present):14 Acceptance in principle Map extraction, Land recovery, Update land Planning Basic Construction of the project or granting measurement of and allotment, use plan certificate design permit of investment certificate the land parcel lease Review and approval of EIA/Registration of environment protection commitment (depending on project type) An Giang (2009 to present):15 Business registration certificate + tax code + Land allotment, lease, conversion of land use purpose Construction company seal or permit Acceptance in principle of the project site investment certificate (with site clearance completed) (for projects for which a project site has not been identified, Agreement of Investment or has been identified but does not transfer of LURCs registration conform to the general plan, 1/2000 plan, (if any) Review and approval of residential developments > 20 ha) EIA/Registration of Fire control Basic design environment plan review protection commitment 13 Based on Decision No.23/2007/QD-UBND dated April 19, 2007 by the provincial PC on the process and procedures for implementing investment projects outside IZs, EPZs and hi-technology zones in Ba Ria-Vung Tau Province. This process is still being applied at present. 14 Based on Decision No.884/QD-UBND dated April 24, 2008 by the provincial PC, approving the plan to adopt the OSS mechanism for implementing investment projects in Thai Nguyen Province. This process is still being applied at present. 15 Based on Decision No.10/2009/QD-UBND dated April 13, 2009 by the provincial PC on implementing the OSS mechanism for investment projects in An Giang Province. This process is still being applied at present. 33 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM Figure 2 shows variations in the overall process for land access and development permits. Specifically: l In all of these provinces, the EIA is required to be completed prior to the granting of construction permits. However, this procedure is undertaken very early in the process, before the granting of Investment Certificates and land allocation/lease in some provinces, such as Bac Ninh (2008), Thua Thien-Hue (2008) and Binh Dinh (2009); simultaneously with the granting of Investment Certificates such as Ba Ria-Vung Tau and after the granting of Investment Certificates but before or simultaneously with the land allocation/lease such as Thai Nguyen and An Giang. The fact that investment, land, environment and construction legislation lacks connections, consistency and alignment is a primary reason for different interpretations among localities on the timing of procedures. l The process workflow is sequential in some provinces. In others, it is simultaneous for certain procedures, which helps to save investors’ time such as in Ba Ria-Vung Tau (three simultaneous procedures) and An Giang (two simultaneous procedures). Bac Ninh, Binh Dinh and Thua Thien-Hue have re-engineered their processes and adopted simultaneous processing for certain procedures (see Section 2, Part 3). l Some provinces have combined processing for cases where procedures are sequential to each other in the process and are processed by the same agency. In these cases, investors do not need to submit separate applications for each procedure that require the same pieces of information. In Figure 2, the DoC of Bac Ninh Province is the lead agency responsible for admitting and processing applications for two procedures — the site survey and planning certificate. After the process was re-engineered in 2009, the DoC of Bac Ninh Province adopted combined processing for these two procedures. After receiving the acceptance of project site document by the provincial PC, the DoC automatically provides planning information for investors without requesting them to submit separate application dossiers. 2 Procedural Mapping A good approach to further analyze local administrative procedures is to “mapâ€? the procedures in detail. The purpose is to provide a guide map so that anyone that is requested to review the subject procedure can follow the map to understand how the procedure is undertaken. The maps can help to identify duplicative and unnecessary activities, procedural bottlenecks and derogations from current regulatory requirements and best practice. These process maps give a graphical reflection on: l Steps to be taken and the relations between the steps l People involved in each step 34 TOOLS OF ANALYSIS l Requirements relating to the application dossier (process inputs) and how the application should be lodged l Administrative decisions made (process outcomes) l The application in the pipeline throughout the process until approval is given. Mapping can be particularly helpful in multi-agency procedures to show the participating agencies the relationship of their roles and procedures to the activities of other agencies involved in the process, sometimes revealing opportunities for better coordination. Depending on the needs and starting point of the process, mapping can be a quick exercise or a substantial, detailed investigation using empirical methods such as survey research. Process maps are typically developed on the basis of reviewing laws, regulations and literature as well as discussions with selected public officials and private sector stakeholders, which can include businesses and other direct users of the land as well as land market intermediaries such as consultants, brokers and design professionals who assist others in obtaining land rights. Gathering information from administrators and customers is necessary as the written descriptions of procedures found in law and regulations often do not describe what happens in fact, due to interpretation and gradual accumulation of administrative practice over time. Figure 3 is the detailed procedural map of the site survey procedure undertaken with the DoC in a locality in 2008. It may be seen as the “cross-sectionâ€? image of the overall process map illustrated in Figure 1. It shows that: l To acquire a full application package for the site survey procedure at the DoC in this locality, an investor needs to obtain confirmation of agreement from the district and commune PCs on the tentative project site. This, in fact, represents two “sub-proceduresâ€? not found anywhere in related normative legislation needing to be completed. l There are many agencies involved such as the DoC (the lead agency for receiving and processing applications and delivering results for this procedure), the provincial PC (the approving agency for the final decision), the office of the provincial PC, district and commune PCs (participating agencies for providing opinions on the applications). However, there is no coordination between the DoC and the district and commune PCs. As the lead agency for this process, the DoC should have contacted participating agencies, including the district and commune PCs for consultation instead of requesting the investor to visit each of the participating agencies as illustrated in the map. Therefore, a recommendation from the analysis of the procedural map would be to increase coordination and accountability of these agencies. l There are several procedural bottlenecks as circled in the map. At these points, there is a risk of processing delays and subjectivity and bureaucracy of administrators may occur if there are no transparent criteria for application reviews and processing. 35 FIGURE 3 Procedural Map of the Site Survey/Site Introduction in a Locality 36 DPC DoC PPC Investor CPC CPC Division of DPC DoC Planning DoC DoC PPC Industry and PCC PPC Land expert Chairman Infrastructure and Chairman OSS Management Director Admin Office Admin Office Construction Office Chairman Economic Division Expert Identify potential site for investment 1 Prepare Land expert receives application the application dossier for submission 2 dossier to CPC HS 1 3 Land expert 4a (Not conformed 4b(Conformed) Need to be revised) checks conformity with land use plan 5a (Reject) Review & sign application Receive the Receive the approved application 6 application form with 5b (Accept) dossier no-objection At CPC 7 Prepare application Expert receives, dossier for submission HS 2 8 reviews the application to DPC dossier 9 Manager assigns expert to process the application 10 Expert 11a checks the legality of the (Request amendments) application and visit the site 11b (Ok) Expert submits official letter requesting for PPC approval of the application 12 HS 3 PPC reviews 13b(Ok) Sign Receive dossier with approval 14b (Accept) 14a (Request amendments) At DPC SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM Know about 15a (No) Provide guidance procedure? & forms 15b(Yes) 16 Prepare application HS 4 17 Receive application dossier dossier 18 19a (Request amendments) Check the accuracy of the dossier 19b (Complete) 33a (Request amendments - in writing) Produce receipt Assign Division of Receive the 20 HS 5 21 Planning Management receipt with result collection date to process the application Manager assigns expert to process 22 the application 23 Issue written Check the 25 instructions 24a completeness of the to investor (Request application amendments)) 24b (Ok) 26a(Request Expert visits amendments) the site 26b (Conformed with the land use plan) Expert prepares a letter of requesting PPC approval of the application 27 HS 6 28a (Request amendments) Manager 28b reviews and (Agree) signs Review and sign 29b (Agree) Register in 29a (Amendment) system At DoC 30 Receive and Receive, Assess the 31 update the 32 application transfer to PPC system records dossier 33b (Ok) 40 HS 7 Draft decision approving selection of 34 Review the site 35a (Not ok) 35b (Ok) Print the decision 37a (Request amendments) 36 Sign Register in Register in Register in Receive decision 41 the filing 40 the filing 39 the filing 38 Update the 37b (Agree) system system system file records At PPC TOOLS OF ANALYSIS 37 Source: IFC/MCG diagnostic survey, 2008 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM Shape How to Read Processes in the procedure Application dossier following the rules: - First submission of the application Preparation of application dossier dossier, including revision of the application dossier by investor: HS1 Decision making - Next submission of the application dossier with a new document(s) created and added to the dossier: HS2, HS3. Registry of incoming and outgoing documents CPC Commune People’s Committee Possible processes in the procedure DPC District People’s Committee End of the procedure PPC Provincial People’s Committee Mapping checklist ï?µ Select a process to study. A process is a series of steps that are completed to accomplish a particular result. ï?¶ Identify objectives. Sometimes the objectives are obvious. If there are too many errors, the objective is to reduce the number of errors. If the process takes too long, the objective is to get through it faster. Sometimes, the objective is simply to document the process — so people can understand it better, to meet regulatory or certification requirements. ï?· Identify the process start point. What triggers the process? Is it the receipt of an application, an email request, an order form, a phone call or are there several triggers? ï?¸ Identify the process end point. How far will you follow this process? Until the application is approved, the result is returned to applicant or a notification email has been sent? ï?¹ Identify WHERE the work occurs and WHO does the work. The best way of doing this is to begin with a narrative process table, which lists activities chronologically. An example of such a process table is given below. 38 Process Table for the Site Survey Procedure Location of Time Documents Documents Step Description Purpose Performed by Activity Elapsed Submitted Created 1 Submit an application Start point Commune PC Investor 0.5 days Application form and None dossier other documents 2 Review submitted Ensure completeness Commune PC Commune land 0.5 days None None documents of the dossier administrator 3 Check with the land Ensure that the Commune PC Commune land 0.5 days Application form and None use plan and project site proposed administrator other documents construction plan by the investor conforms to the approved planning 4a Return the application Inconformity with Commune PC Commune land 0.5 days Application form and None dossier for revision the planning administrator other documents 4b Receive the revised Conformity with the Commune PC Commune land 0.5 days Application form and None application dossier planning administrator other documents ....... 41 Return results End point TOOLS OF ANALYSIS 39 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM ï?º Construct a map based on the process table. Microsoft Visio is popular software to draw process maps with a handful of shapes, blocks, icons that can be used to denote an activity/step such as: Shape Meaning Step An activity performed by a person (a task performed by an administrator or a business/citizen). Decision A point at which a decision is made subject to the compliance and completeness of the previous activities. Application dossier Application dossiers prepared. Filing Filing of application dossiers. Database Use and update of a database for processing applications. Preparation undertaken by the investor or the administrator in order to submit Preparation an application dossier or transmission to higher level of management for further processing. End End point of the process. Flow of primary steps of the process. Flow of secondary steps. To be Notification that the process map extends to the next page because it can’t fit continued in one page. next page 40 TOOLS OF ANALYSIS Using the Procedural Map In defining a process, the key objective is to capture reality and to paint a realistic picture of what the process does. When mapping a procedure, we don’t ask why it is happening, because it doesnot matter yet. However, during analysis, every question becomes two questions. ï?µ At each step, we ask first “What is happening? And to the answer of that question we ask “Why?â€? Why are we doing this? Is it necessary? Can it be eliminated? - If there isn’t a good reason for doing that step, recommend that it be eliminated. This is the question that produces the most cost effective changes and should always be asked first. When work steps are eliminated there is little or no implementation cost and the benefit equals the full cost of the performing that step. - If there is a good reason for performing the step then ask: “Where is it done and why is it done there?â€?, “When is it done and why is it done at that time?â€? and “Who does it and why does that person do it?â€? These questions lead to changes in location, timing and the person doing the work without changing the task itself and they are also highly cost effective. Schedules are revised to fit with previous and following portions of the process to produce a smoother flow. Tasks are shifted to people better able to perform them. Tasks are combined, eliminating transport and delays between them that occurred as the work flowed between locations and/or people. ï?¶ Only after these questions have been asked and answered should the final question be addressed: “How is it done and why is it done that way?â€? While this question can lead to excellent benefits, it also incurs costs because changing how a task is done generally requires introducing new technology and significant amounts of training. Using these questions with a process map provides agencies with fresh eyes to see their work from a new vantage point. From this new perspective, opportunities for improvements become apparent, and since the people doing the study are familiar with the work, their improvements are almost always realistic, practical and actionable. 41 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM 3 Analysis of Document Requirements A problem frequently encountered is the lack of coordination and standardization among agencies with respect to the format and content of documents investors must submit to obtain licenses and permits. Agencies often require different formats or content for what is essentially the same information, requiring applicants to prepare separate documents with minor variations and decreasing the comparability of application files among departments and agencies. The concept of standardization is discussed in greater detail in Part 3. A first step towards analyzing this issue is to understand the actual requirements of the local agencies with respect to form and content of documents and application dossiers. Figure 4 illustrates for one locality the number of application documents the investor needs to prepare and the expected outcomes from the agency in charge for each process. The figure shows that by the end of the nine processes, the investor has prepared and filed 62 documents, of which 63% have to be developed anew, 26% overlapped (some documents have to be filed four times) and 11% are outcomes of previously completed procedures. If government agencies shared information with each other, the investor may have fewer documents to submit. For example: â—? Credentials for the investor's legal status, project brief, project proposal, planning certificate are documents submitted over and again at different authorities (see purple boxes for reference numbers of overlapping documents and number of overlaps). If information is shared among provincial line agencies, the investor may not have to submit the same information to different agencies. â—? Applicants are submitting the same documents for different procedures to the same agency. The procedures of land recovery (P5) and LURC granting (P7) are both under the responsibility of the DoNRE. Nonetheless, the investor would be required to resubmit the legal status documents (H4-PL) or cadastral maps (H16-D). â—? Permits issued by the same authority still have to be submitted to that authority if another process is involved. Examples are the procedures for EIA (P3) and land recovery (P5), which are both handled by the DoNRE. Nevertheless, for the land recovery procedure, the DoNRE still requires the investor to re-submit the approval document of the EIA report, which has been issued by the DoNRE earlier for the EIA procedure (see the orange box in P3). Similarly, while the procedures of site survey (P1) and planning certificate (P2) are both handled by the DoC, the investor is still required to present the outcome from the procedure of site survey when applying for a planning certificate (see the orange box in P1). 42 TOOLS OF ANALYSIS FIGURE 4 Document Requirements in Different Processes Each cell represents a required document in the application dossier. For example, in the first process (P1) for the Site Survey, the application dossier consists of five documents. Orange boxes – Outcomes of previous processes. For example, in the third process (P3) for EIA, of the six documents required, two are the outcomes of other processes, that is the Planning Certificate from the second process and Acceptance of Project Site Survey from the first process. Note that this is the second time that the Acceptance of Project Site Survey is requested by the local government. Purple boxes – Overlapping documents. For example, in the fourth process (P4) for the Investment Certificate, there are two overlapping documents with other processes. They are: - Project document (denoted as H10-DA). This document is first required in the third process (EIA), then repeated in the fourth (Investment Certificate) and then again on the fifth process (Land Recovery). - Legal status document (denoted as H4-PL). This document is first submitted in the first process (Site Survey), then repeated in the fourth process (Investment Certificate) and then again in the fifth process (Land Recovery) and seventh process (LURC). 13 12 H24 H15 H25 H16-D H26 H17 H27 H18 8 H28 H10-DA(2) H22 H29 6 6 P1(4) P5-QD(4) H30 5 H9 H13 P2(3) P5-HD(5) H31 H1 4 H10-DA P1(3) H19 4 H16-D(2) H32 4 H2 P1(1) H11 P2(2) H20 H16-D(1) P5-BB(6) H33 H37 H3 H6 P2(1) H10-DA(1) H21 P5-BB(3) P3(2) H34 H38 H4-PL H7 P1(2) H4-PL(1) P3(1) P5-HD(2) H4-PL(3) H35 H39 H5 H8 H12 H14 H4-PL(2) P5-QD(1) H23 H36 P2(3) Process 1 P1 P2 P3 P4 P5 P6 P7 P8 P9 Si te Pl a nni ng EIA Inves tment La nd La nd LURC Ba s i c Cons tructi on Survey Certi fi ca te Certi fi ca te Recovery/ Pri ci ng Des i gn Permi t Convers i on of La nd Us e Purpos e, La nd Lea s e Shape H(i) Document i (new document) to be prepa red H(i) Document i overla pped H4-PL Lega l s ta tus document H(i)(y) Document i overla pped y times H10-DA Project document/Fea s ibility s tudy P(x)(y) Outcome of process x submitted y times H16-Ä? Ca da s tra l ma p of the la nd pa rcel Source: IFC/MCG survey, 2008 ï?† Purple and orange boxes should be considered for removal or reduction if there is information sharing between related agencies. 43 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM The mapping of documents required for across procedures in the workflow will help agencies have a visual look at the burden of documents to be prepared by investors and identify areas for improvements, i.e. remove the request of submitting documents that have already been submitted or have been issued by the agency. The analysis of this mapping exercise also facilitates the sharing of information between agencies that will eventually save resources (personnel and time) for agencies and investors. 4 Contact Point Analysis “Contact pointâ€? is used to refer to a person or desk at which an applicant must stop in the process of obtaining the permit or license. These contacts may be for a variety of reasons including to obtain information or guidance, preliminary review and approval of technical matters or to submit a required document. The complexity of the process increases as more face-to-face contacts are made in different departments. The required people may not be available, frequently necessitating return visits and causing delays. In the worst cases the various contact points may issue different interpretations or establish conflicting requirements. Figure 5 gives an example of contact points that an investor in a particular locality has to visit to complete the procedures for land allocation, environment and construction as required. It shows that there is an OSS unit in each agency, however: â—? Most investors have to make contact with at least two different divisions in the same agency: (i) the OSS (the blue circle) and (ii) a technical unit (the red circle). â—? Moreover, the investor may have to visit more than one authority for a single procedure. In Figure 5, an investor has to make contact with two to six contact points per procedure or at least 25 contact points in total to complete the entire process. 44 FIGURE 5 Contact Points for Investors to Complete the Entire Process for Land Access and Development Permits in a Locality prior to Process Re-Engineering 1 > 402-490 days >297 Factory Environmental Land clearance Land Site Planning Investment Land Land Basic Construction impact and compensation allocation, LURC survey certificate Certificate recovery pricing design permit assessment lease Investor Commune PC DoC Commune PC DPI Commune PC Commune PC DoF DoNRE DoC DoC District PC DoNRE Provincial PC District PC District PC Provincial PC Provincial PC DoC Provincial PC DoNRE DoNRE Provincial PC Provincial PC Provincial PC Legend: Technical unit Investor meets directly with government agencies One-stop shop unit Government agencies coordinate with each other Source: IFC/MCG survey, 2008 TOOLS OF ANALYSIS 45 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM Implementing the OSS mechanism may help reduce the number of contact points for investors (see Part 3). However, the primary functions of many OSS units are still purely to receive applications and return results via administrative staff. Therefore, investors tend to visit both the OSS units to lodge applications and receive results and the technical units to obtain instructions on how to prepare application dossiers and how to revise them. In order to avoid “many stops in a one-stop shopâ€?, the OSS units need to be allocated with professional staff who may work there for certain working hours depending on the workload of the OSS. The professional staff will work with the administrative staff and provide information and instructions for applicants to help them properly prepare applications and undertake a preliminary review of applications. All staff working at the OSS units should be trained on technical knowledge that is needed to make them capable to provide useful support for applicants. Investors therefore need to visit the OSS unit only to get the advice and information they need. The OSS will then become a true single contact point, facilitating internal workflows, coordination and external exchanges with other related government agencies. Figure 6 illustrates how the contact points have been reduced when they are concentrated into the OSS units (there will be no more red circles). The number of contact points will be reduced from 25 to seven. FIGURE 6 Contact Points for Investors after the Process Has Been Re-Engineered 1 349-372 days >297 Factory Environmental Land recovery, Construction Site survey Land clearance and impact assessment allocation , lease permit compensation Planning Investment LURC certificate Certificate Basic design Investor DoC DoNRE DPI Line DoNRE DoC DoNRE Department for Specialized Projects Provincial PC Provincial PC Provincial PC Provincial PC Legend: One-stop shop unit Investor meets directly with government agencies Government agencies coordinate with each other 46 TOOLS OF ANALYSIS 5 Time Studies Accurately measuring the amount of time it takes to complete a procedure is an important step. It is possible to apply time measurement not only to whole procedures, but also to the individual elements of procedures, identifying bottlenecks and potential inefficiencies. Time is a simple and clear indicator of performance that everyone understands and is becoming more important as administrative agencies commit to customers that work will be completed within a stipulated time period. One source of information for completion on time is to interview customers and professionals using formal survey and feedback mechanisms. The actual experiences of customers and professionals frequently differ from the perceptions of the officials who carry out the procedures. An important supplement to interviews with process administrators and customers can be a review of a sample of application files, provided the filing system is well organized and maintained. In the best case, files will follow a fixed format allowing the reviewer to track the movement of the file from stop-to-stop within the reviewing agencies. Moreover, it is often required, and should be if not presently required, that the dates on which a file is received at a stop and then passed on be recorded in the file, permitting tracking of time for specific steps in the process. Notes are often included describing reasons for delaying or suspending processing, giving insight into the typical problems affecting applications. Today, most of these functionalities are included in electronic management information systems, which allow detailed tracking of time performances by staff members and office functions (see Part 3). BOX 3 Administrative Time Studies in Nigeria Since 2001 the building authorities in Lagos, Nigeria have had in place a policy of “30/30,â€? which promised approval of a building permit within 30 days of submission of an application to any local office. In 2009 IFC, with the cooperation of building authorities, conducted a study of randomly selected application files for building permits in selected offices. The purpose of the file review was to track the progress of the files from desk-to- desk (desk stops), recording the nature of the desk review and the amount of time spent at each stop. 47 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM The file review was preceded by a definition of specific steps or functions in the permit process and association of specific officers within the permit issuing agency with each of these functions. Each officer was required to note on the file dossier the date he/she received the file, allowing a more or less precise calculation of how much time the file spent on each desk. By aggregating the times for officers associated with each function it was also possible to determine the amount of time spent for each function. In addition, it was possible to track the time during which the file was stalled within the issuing office under an order to suspend processing pending correction of errors or delivery of missing or additional information by the applicant. This latter process is known as a “keep in viewâ€? order, or “KIV.â€? KIV is frequently an indication of defects in the application. Distribution of Construction Permit Processing Days by Office Function, Lagos, Nigeria 0.35 31.14% 0.3 0.25 % of Total Days 19.35% 0.2 16.33% 0.15 11.82% 0.1 7.27% 3.94% 3.54% 4.43% 0.05 2.17% 0 KIV C TR EN CH T S FA E Function Legend: KIV Keep in View T Tax C Clerical S Supervision TR Technical Review FA Final Approval EN Engineering E Error CH Charting 48 TOOLS OF ANALYSIS Some of the findings of the study included: â—? The actual technical review of permit applications took on average only 20% of the processing time. Almost half (48%) of the time taken in permit processing was for supervision by middle management (director level staff) and obtaining final approval from the four most senior officials in the management structure. â—? The average time to deliver a construction permit to the applicant was 295 days, or 10 times the performance standard of 30 days set by the authorities in 2001. â—? Almost one-quarter of all permits took a year or longer to issue and more than a half (59%) took more than six months. Only 17% of cases took less than two months to issue the permit. â—? On average applications were delayed for 35 days because of missing documents or other requirements not identified when the application was accepted for review. Lagos, the most populous city in Nigeria, is the financial, commercial and industrial hub of this country. Photo from Website: http://www.lagosstate.gov.ng/. 49 3 50 TOOLS FOR ADMINISTRATIVE REFORM PART 3 TOOLS FOR ADMINISTRATIVE REFORM In recent years, many countries have made efforts to improve their administrative processes relating to land access and development permits from the perspective of investors, aiming to make them more transparent, reducing processing times and unnecessary paperwork. Among developing countries the main approaches to improving these administrative procedures have included:  One-stop shops. OSS is a common means of administrative reform improving administrative efficiency today, including in Vietnam.  Parallel processing. Cases in which commencement of one step in an application process must depend on completion of a prior step are relatively rare and it is considered to be best practice to process steps in complex application procedures simultaneously to the maximum feasible extent.  Permit review forums. Parallel processing of applications among regulatory agencies can be facilitated by requiring or permitting, at the request of applicants, periodic meetings at which responsible representatives of the agencies are required to appear in the presence of the applicant to comment on the application and identify further steps expected of the applicant.  Standardization of application and documentation requirements. Application requirements can be coordinated among reviewing agencies to determine if they are asking for the same information in different ways or formats and an attempt can be made to standardize the content and format of the requirements and documentation. In the absence of compelling reasons, all agencies should be required to accept applications and documents in the standardized format.  Time bound processing. Reasonable time limits can be set on processing applications. However, experience suggests that strict limits that exclude an agency’s input, unless the time limits are met, may be unrealistic and ignored in practice, particularly if the result would be to allocate a state asset or avoid a legitimate health or safety regulation. But, the implementation of processing time targets establishes a standard against which performance can be measured. 51 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM These and other possible tools for improvement of administrative processes are discussed in this part. 1 One-Stop Shop Approach The idea of the OSS is to allow businesses and the public to contact a single entity to have related procedures completed and obtain related types of permits, decisions, approvals and certificates. The OSS is ideally a consistent, simple public administrative process to provide access to multiple related services at the same time and in the same place. FIGURE 7 One-Stop Shop Basic Workflow Investment procedures Investment procedures Land procedures Land procedures Apply Environment procedures Results Environment procedures Construction procedures Construction procedures Fire Protection procedures Fire Protection procedures OSS Investor Investor 1.1 Expectations of a Best Practice One-Stop Shop There are a number of practical and theoretical issues to be considered in creating an OSS. Experience and studies in different countries indicate that a best practice OSS often entails the following requirements and attributes. BOX 4 Summary of Factors Influencing the Success of One-Stop Shops The one-stop shop approach will succeed if:.. The one-stop shop approach will fail if ...  It has a central position. ï?? It is too far from where businesses are located, making it hard for them to reach and have procedures completed.  It is backed with the political will and ï?? It does not have the support of the commitment of the local government. local government.  It has a vital role in the organization ï?? It does not have sufficient power and is given high decision-making and simply serves as a place for authority. applicants to come and pick up forms and instructions to go somewhere else for the next steps. 52 TOOLS FOR ADMINISTRATIVE REFORM  It is staffed with quality, highly ï?? It lacks quality staff and necessary skilled, experienced and regularly working tools. updated personnel.  It has in place a system of operating ï?? It does not have an operating procedures, discrimination of procedures system to guide the responsibilities, monitoring and operation of the OSS. addressing abuses.  Fees and charges are listed, while ï?? Fees and charges are not publicly transparency and disclosure are announced. maintained. ï?? It lacks a clearly defined  It has a clearly defined communication strategy to raise communication strategy. the awareness and understanding of stakeholders. â—? Accessibility: A vital factor to consider when applying the OSS approach is accessibility for the public and businesses. For example, instead of maintaining an OSS at a single physical address, larger local governments may consider opening an OSS in different locations convenient for businesses and citizens. With the help of information technology and public internet sites, local governments may completely decentralize the process of providing information and receiving applications, collecting data online and relaying it to a centralized processing hub or individual departments responsible for application processing (see Section 5, Part 3). â—? Commitment of the local government: The effectiveness of an OSS depends in large part on the level of local government commitment and support. In some countries movement towards the OSS approach has faced various challenges from existing agencies that resist delegation of some of their roles and powers to the OSS. A high level of support may be necessary to overcome individual agencies’ reluctance to participate in a cooperative facility that may limit some of their prerogatives and expose their operations to greater scrutiny. A strong display of support by the local administration can engender public confidence and lead to greater use of the facility. Finally, investing in resources may also be necessary to get the shop up and running. 53 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM â—? Roles and authority: The roles and authorities of OSS can differ widely. An OSS can have a vital administration role and can be given significant decision-making authority, or be a simple conduit and source of information. The power that the local government decides to vest in the OSS may have major influence on its effectiveness. International experience reveals that the “one-stop shopâ€? concept is often understood and applied in three different ways. ï?µ Information provision OSS: This type of information specialized OSS can provide investors with information and guidance relating to administrative procedures. This is a relatively easy facility to establish as it does not require delegation of authority. ï?¶ Promoting and collaborating OSS: This type of OSS functions to (i) provide information and guidance (as in the case of the “informationâ€? OSS), (ii) receive applications, (iii) monitor and accelerate the application review process and (iv) return the outcomes (in the form of permits, certificates or approval from the relevant authority) to the applicants. This approach usually requires that staff of each reviewing agency be made available in a single location. Each OSS staff member must fully understand what needs to be done at each authority involved in the process, adopt a positive attitude and work in harmony to meet common objectives or risk the OSS turning into “one more stopâ€?. The Hong Kong pilot program for a warehouse construction OSS described in Box 5 is an example of an ongoing “collaboratingâ€? OSS. A key characteristic of this model is that it encouraged the participating line agencies to agree to the same performance standards and assigned shop staff to monitor an individual application’s progress once in the hands of separate technical agencies. Even though the shop has no formal power to approve applications or overrule technical agencies’ decisions, the monitoring function serves to make the process more transparent and encourages separate technical agencies to adhere to performance standards adopted by government. 54 TOOLS FOR ADMINISTRATIVE REFORM The website of the Hong Kong One Stop Centre for Warehouse Construction Permits. Photo from Website: http://www.eu.gov.hk/english/osc/osc.html. ï?· Approval authority OSS: This type of OSS has the authority to receive, process, and approve permits, certificates and approvals within its competence. This OSS approach requires the formal delegation of power from the relevant authorities, or such authorities assigning their own staff with decision-making powers to work at the OSS. In addition, running an OSS in this mode also requires OSS staff to have comprehensive experience, skills, knowledge and understanding of related aspects of the process. Experience suggests that this approach may be the most convenient for applicants, however, it is not often supported by local authorities. As a result, local authorities may not delegate sufficient authority to the shop or local departments and agencies may not contribute staff with sufficient authority, knowledge and understanding to make decisions. Another key concern for the success of such a shop is that there be a sufficient volume of business to justify the assignment of senior staff members from the line agencies to the shop for periods of time. In one case recently reported by IFC, the Development Board of Rwanda decided to close down an OSS to which senior representatives of the line agencies were assigned one day per week. The shop’s objective was to accelerate investment approvals and land use permissions in and outside of industrial development zones by putting senior officials with significant decision-making authority in one place for one day per week. It was found that the volume of business could not justify the 55 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM absence of such senior officials from the ongoing work of their agencies. This issue may not arise in busy urban areas with high demand for services. The most effective form of OSS is one that results in shorter processing times for permits, certificates and approvals. To achieve this, the “approving one- stop shopâ€? should represent the true meaning of the term “one-stop shopâ€?. However, true “approving one-stop shopsâ€? remain relatively rare today and are often in the form of corporate entities created by government with the specific purpose of promoting development by superseding local controls on land allocation and development. Such entities are common today in the development of tourist areas and facilities. For example, many countries such as Egypt, Indonesia and Mexico provide for tourism development zones managed by special entities with full power over land use planning and construction. In Vietnam today, industrial and trade development zone authorities can be the equivalent of a functionally integrated OSS with full approval powers for finding locations for businesses and the issuance of construction permission. A common characteristic of true “approving one-stop shopsâ€? is that their authority may be limited to a specifically designated location, in which they are authorized to assume the normal roles of local government agencies with respect to land development controls. BOX 5 Hong Kong Warehouse “One Stop Centreâ€? and Expedited Permit Procedure In December, 2008 the Hong Kong Building Department initiated a pilot program for a “One Stop Centreâ€? for a certain category of warehouse projects. The One Stop Centre provides a centralized office for receiving construction plans and related application submissions and coordinating joint inspections conducted by different government departments. It offers businesses a convenient single point of contact and saves investors’ time in making applications to different departments, utility companies and contacting different parties for inspections. An eligible project must (1) be a warehouse for general storage of not more than two stories and without a basement, (2) have no extraordinary needs for emergency vehicular access or fire safety, (3) not require significant foundation work with geotechnical content, (4) not require significant precautionary safety measures to be implemented prior to commencement of construction and (5) have complete plans and applications as required under current regulations. 56 TOOLS FOR ADMINISTRATIVE REFORM The One Stop Centre accepts completed applications for six separate government departments at both the pre-construction and post-construction phases of the project. Stage 1: Pre-Construction Stage 2: Post- construction Applicant Submit applications Submit applications Building construction Refer applications to relevant parties Refer applications One Stop Centre and coordinate to relevant parties joint inspection, if required Relevant authorities, Process applications departments Process application and carry or utility companies out inspections â—? In the pre-construction phase, the OSS accepts a single package of completed applications for approval of building plans, commencement of construction, excavation works and water supply. â—? In the post-construction phase, the OSS accepts the applications for drainage connections, a fire services audit and certificate, water supply, electricity connections, certificate of compliance with building requirements, telephone services and final joint inspections of the completed facility. The applications for each of these services are completed in accordance with the current requirements of each department, packaged in separate envelopes and marked appropriately. Upon receipt of the applications the OSS takes responsibility for: â—? Verifying compliance with submission requirements â—? Delivering the application documents to the relevant departments; â—? Monitoring processing and processing times 57 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM â—? Delivering departmental comments and questions to the applicants â—? Collecting and delivering final approvals and permits to applicants. The One Stop Centre performs the role of monitoring the progress of each application and for building projects eligible for parallel processing. It commits to process the applications within 45 days from the date of submission. The individual government departments that participate in the One Stop Centre are also committed to meeting these performance pledges in processing the relevant applications. Moreover, upon receiving applications, the One Stop Centre pledges to deliver the documents to each relevant department within the next working day. Source: Hong Kong Building Authority â—? Staff quality: The performance of an OSS is closely related to the quality and professionalism of its staff. An OSS needs to employ sufficiently qualified and competent staff and offer opportunities for comprehensive, holistic and regular training to help them iron out any emerging problems. â—? Clearly defined operating procedures for the OSS: Clearly defined job description, responsibilities, authority and specific operating procedures, standards and criteria help prevent arbitrariness and reduce malpractice. This will also create and build trust among businesses and the public as they recognize that the workflow on paper as they have learned and expect actually takes place exactly the same way in real life. â—? Commmunication strategy: Education and communication to let the businesses and public know about the presence and performance of the OSS is vital. The one-stop shop will have less meaning if the public and potential investors have no idea of the services and service quality currently available at the OSS. The communication strategy does not necessarily have to be sophisticated and massive in size. Communication through the radio, television, leaflets, booklets or brochures, catalogues, billboards or posters in crowded places has proven effectiveness (see Section 6, Part 3). 58 TOOLS FOR ADMINISTRATIVE REFORM â—? Facilities: The importance of clean, welcoming and customer friendly physical facilities should not be underestimated. A facility should:  Be large enough to provide a waiting lounge for clients applying for procedures and seeking information.  Provide complete information and instructions posted in the office area.  Be well furnished with attractive waiting benches, writing desks for customer use, beverages, air conditioning, and an automatic queuing system.  All necessary business equipment for staff, including computers, printers, and photocopying machines for use of both staff and customers. BOX 6 One-Stop Shop Facilities An OSS should provide a spacious and friendly environment with waiting lounges for clients filing applications, looking for information and studying related procedures. Photo: Process maps are displayed at the OSS for land Photo: Waiting lounge at the OSS for land access and access and development permits in Thai Nguyen development permits in Quang Ninh Province. Province. 1.2 Types of One-Stop Shop Structures Similar OSS structures offer few opportunities for innovation and the structures can be divided in several ways. According to Decision No.93/2007/QD-TTg16, in an inter-agency OSS, the agencies can be linked vertically, horizontally or mixed, i.e. both vertically and horizontally. According to the physical organization, there are two types -- a multi-agency OSS and a lead agency OSS. 16 Decision No.93/2007/QD-TTg dated June 22, 2007 by the Prime Minister promulgating regulations on implementation of OSS and inter-agency OSS mechanisms in local state administrative agencies. 59 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM The multi-agency OSS and the lead agency OSS Horizontal inter-agency OSS are the two most prevalent models in the world is a joint mechanism for today and are commonly found throughout handling procedures among Vietnam. agencies of the same level (e.g. for the procedures of Multi-Agency One-Stop Shop business registration, tax code and company seal). In seeking to establish an OSS, a common Vertical inter-agency OSS is a approach is to bring together representatives of joint mechanism for handling different government agencies into one place. procedures among agencies This is often described as the “multi-agency of different levels, either top- OSSâ€? or a “one doorâ€? or “one roofâ€? approach. down (from provincial agencies down to district and This may be relatively straightforward to commune ones such as for implement, subject to suitable accommodation. land allocation and land lease) It would not normally require any change in or bottom-up (from commune legislation or departmental responsibilities. agencies up to district and However, it would need effective cooperation then to provincial agencies such as for residence between different agencies and require staff registration and justice). from relevant departments to work at the OSS office according to an agreed schedule. Mixed inter-agency OSS both Therefore, they would be unable to handle horizontally and vertically: other tasks during that time. This model would such as that for approval of the project sites and granting be more efficient for provinces that receive a of the investment certificate. great number of applications per day. Examples of Provinces Adopting the Multi-Agency OSS for Land Access and Development Permits Participating agencies, typically including the DPI, DoNRE and DoC, place staff in a single office to provide guidance, receive applications and return outcomes to applicants. The investor interacts with respective representatives of the three agencies at the same time and place to complete respective procedures. 60 TOOLS FOR ADMINISTRATIVE REFORM FIGURE 8 Multi-Agency OSS for Land Access and Development Permits outside IZs, EZs and EPZs in Vietnam Department of Natural Department of Department of Resources and Environment Planning and Investment Construction (DoNRE) (DPI) (DoC) MULTI-AGENCY ONE-STOP SHOP Desk 1 Desk 2 Desk 3 Land and environment- Investment-related Construction and related procedures procedures planning-related procedures DoNRE staff DPI staff DoC staff INVESTOR Legend The multi-agency OSS receives applications from investors and passes onto relevant agencies for processing. The multi-agency OSS receives results from the processing agencies and delivers to the investors. 61 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM BOX 7 The Multi-Agency One-Stop Shop in Thai Nguyen Province On April 24, 2008, the provincial PC of Thai Nguyen Province issued Decision No. 884/QD-UBND approving the provincial initiative to implement a multi-agency OSS mechanism to handle administrative procedures for investment projects in the province. On June 1, 2008, the multi-agency OSS was officially launched. The OSS operates under the direction of an OSS Steering Committee that is chaired by the provincial PC Chairman and its members consist of senior leaders and officers from related departments such as DPI, DoC, DoNRE, Department of Finance (DoF) and Provincial Industrial Zone Authority (IZA). These members are directly engaged in decision-making to guarantee investors’ applications are handled on time at the OSS while still carrying out their other daily jobs. An OSS Standing Committee, led by the DPI, assists the Steering Committee with daily management of the OSS office. The OSS office is located in the provincial PC. OSS staff include those from the DPI, working full time there everyday and those from the DoNRE and DoC, working full time there every Tuesday and Thursday. The OSS is the focal contact point for investors to obtain information and instructions, submit applications and receive outcomes for all procedures related to investment, land access and construction. The OSS takes the lead in coordinating with related agencies. For procedures that need consultation with other agencies, particularly the in principle approval of an investment project, the OSS Standing Committee calls for a Steering Committee review meeting. The meeting minutes are a key document for the provincial PC to make final decision. Photo: The OSS operation workflow is clearly displayed at Thai Nguyen Province’s OSS office. 62 TOOLS FOR ADMINISTRATIVE REFORM BOX 8 The Multi-Agency One-Stop Shop in Quang Ninh Province Quang Ninh Province’s multi-agency OSS office was established in accordance with the provincial PC’s Decision No.618/2007/QD-UBND dated February 13, 2007 which promulgates provisional regulations on the implementation of a multi-agency OSS mechanism to handle administrative procedures for investors undertaking production and trading projects in the province. The office is located on the first floor of a multi-agency office building. It provides a single contact point for investors to register business start-ups and undertake post-registration procedures related to land access outside IZs, EZs and EPZs such as for Investment Certificates, basic design, EIA/environment protection commitments and land allocation/leases. There is also an OSS Task Force that consists of a provincial PC Vice Chairman (Task Force Leader), DPI Director (Task Force Standing Deputy Head) and directors of related departments such as DoNRE, DoC, DoF, Tax Department, Police Department (Task Force members) and the district PC Chairmen (depending on specific projects). The standing office of the Task Force is the OSS office, located at the DPI, directed by the DPI Deputy Director and consisting of professional staff from DPI, DoNRE, DoC, DoF, Police and Tax Departments. Consulted agencies are required to commit to specific time frames and the rule of “silence is agreementâ€? applies. As the diagram shows, the OSS office receives applications and delivers results. Actual processing and decision-making takes place at respective departments upon receipt of applications passed from the OSS office. OSS OSS OSS DPI DPI expert DPI expert DoNRE Investor DoNRE expert DoNRE expert Investor DoC DoC expert DoC expert The OSS office publishes full information about each procedure, including the process, duration, fees and charges and working hours. 63 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM BOX 9 The Multi-Agency One-Stop Shop in Hai Duong Province Hai Duong Province implemented its multi-agency OSS mechanism in accordance with the provincial PC’s Decision No.02/2010/QD-UBND dated January 20, 2010 to handle 12 different procedures as indicated. Business start-up procedures 1 Business registration certificate 2. Tax code registration 3. Corporate stamp registration Investment procedures 4 Recommendation and approval of project sites 5. Investment Certificate Land procedures 6 Land recovery 7. Land allocation 8. Land lease contract 9. LURC 10. Approval of land lease fees and collection methods Construction procedures 11 Approval of detailed construction planning 12. Construction permit. Upon receipt of an application file, the OSS’ staff is responsible for immediately collating and verifying the file. If there are questions that need clarifying with related agencies, the OSS office clarifies them with the respective agencies immediately before admission. If the application file is incomplete or not in order, the officer on duty provides detailed explanations and instructions to the applicant for the file’s completion as required. Such guidance will be provided once, in full and exactly as publicly listed so investors avoid repeated revisiting to revise the file. The transfers/circulation of application files between the OSS office and related agencies are documented and updated in a standard documentary workflow control sheet to monitor the processing status and keep records of delays and reasons. 64 TOOLS FOR ADMINISTRATIVE REFORM Lead Agency One-Stop Shop If, going through the “one doorâ€?, a customer finds just one and not several counters, this is a different type of organization - a “lead agency OSSâ€? or “one windowâ€? or “one tableâ€? approach. The advantage of this model is that the lead agency official is authorized to accept documents for government bodies other than the one that employs him/her. Documents may be sent by hand or courier to other offices for action, or this may be done electronically. As a result, the applicant will normally only need to deal with one person and not be forced to go to other offices or meet staff from other offices. However, lead agency staff need to thoroughly understand and familiarize themselves with the application forms and requirements of other procedures to provide customers with proper instructions on how to correctly prepare applications. Proper training is recommended and more human and financial resources should be allocated. Examples of Provinces Adopting the Lead Agency One-Stop Shop in Land Access and Development Permits In this model, one of the participating agencies, often the DPI, is assigned as the lead agency which directly provides instructions, receives applications, processes the applications within its own powers and circulates the applications to other participating agencies for completion of procedures. FIGURE 9 Lead Agency OSS for Land Access and Development Permits outside IZs, EZs and EPZs in Vietnam Department of Natural Department of Planning Department of Resources and Environment and Investment Construction (DoNRE) (DPI) (DoC) Desk for Application receipt and Result delivery Investment, Land, Environment and Construction Procedures INVESTOR Legend The lead-agency OSS receives applications from investors and passes onto relevant agencies for processing. The lead-agency OSS receives results from the processing agencies and delivers to the investors. 65 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM BOX 10 The Lead Agency One-Stop Shop in Ba Ria-Vung Tau Province Ba Ria-Vung Tau Province has operated a lead agency OSS since April, 2007 in accordance with the provincial PC’s Decision No.23/2007/QD-UBND dated April 19, 2007. The DPI serves as the focal contact point for six procedures as indicated. Investment procedures 1 Principle approval of investment projects and recommendation and approval of project sites 2. Investment Certificate Environment procedures 3 EIA/environment protection commitment Construction procedures 4 Approval of detailed construction planning 5. Construction permit Other proceduress 6 Fire safety approval The DPI receives applications for the six indicated procedures and circulates them to the respective agencies for processing. The DPI will then collect outcomes from the related agencies and return them to the applicants at the DPI OSS. It should be noted that due to the complexity of land-related procedures, the province has chosen not to include them (e.g. land allocation, land lease and LURC) within the coverage of the OSS. Rather, investors work directly with DoNRE to complete these procedures. However, the DoNRE is required to send monthly update reports to the DPI about the status of applications for land- related procedures for monitoring the overall process and consolidated reporting to the provincial PC. 66 TOOLS FOR ADMINISTRATIVE REFORM BOX 11 The Economic Development Office in Ninh Thuan Province The provincial PC of Ninh Thuan Province issued Decision No.290/2010/QD- UBND on March 17, 2010 promulgating regulations on the implementation of an inter-agency coordination mechanism to solve administrative procedures with the Economic Development Office (EDO) as the lead agency OSS. It serves as a single contact point for investors to undertake all administrative procedures, which are divided into three categories: The first category includes procedures that are processed directly by the EDO such as tax code registration, extracts of site maps and site recommendations. The second category includes procedures for which the DPI is the responsible agency to propose the investor’s case to the provincial PC for a final decision, such as the approval of project sites and granting of Investment Certificates. The EDO receives applications and advises the DPI on application solutions to be proposed to the provincial PC for final approval. The third category includes procedures that are to be processed by relevant line departments/agencies. The EDO only serves as the focal contact point of receiving applications from investors and returning results to investors. DoNRE DPI DoC - Business registration, tax code and company seal registration - Approval of detailed construc- Tax Department tion planning, construction permit, basic design EDO NINH THUAN - Land allocation, land lease, PPC office LURC - Mining licences - Fire safety approval DoET, DoH Investor - Establishment of private training and medical care centres EDO District PCs - Work permit - EIA/environment protection commitment Police Department - Land compensation and resettlement DoLISA Other departments 67 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM The EDO was established in accordance with Decision No.207/2010/QD-UBND dated March 8, 2010 by the provincial PC. It is a public service agency with a legal status, a separate stamp and bank account. It is mapped to the DPI and is managed by the DPI Director under the directive of the provincial PC Chairman. Its operations are funded by the state budget and other sources. Its design is based on Singapore’s Economic Development Board (EDB) (www.edb.gov.sg) and will be developed to become a modern public administrative service center for the province. According to Ninh Thuan Province’s EDO Director Truong Xuan Vy, the EDO helped to cut 30-50% of an investor’s time spent on administrative procedures and grabbed investors’ attention. So far, with advice from the EDO, the provincial PC has approved and granted Investment Certificates for 70 new investment projects with approximately VND160 trillion in registered capital, a substantial increase compared to the past.17 Please visit http://www.edoninhthuan.gov.vn/ for more information. 1.3 Some Further One-Stop Shop Considerations The full positive impacts of adopting the OSS model will not be enjoyed unless it goes with improvements or simplifications to the existing process, document requirements and procedural conditions, especially when the existing working conditions, incentives and processes are still issues to be addressed. In many ways, some OSS roles may become redundant as localities move towards implementing several other administrative tools discussed in this toolkit. These include (1) electronic processing of applications (see Section 5, Part 3), (2) standardization of applications and documents (see Section 7, Part 3) and (3) parallel processing of applications (see Section 2, Part 3). If an investor can upload all information electronically in standardized formats accepted by all reviewing agencies and each of these agencies is connected by intranet, the benefits of the OSS may be achieved by other means. Through these means the “approving one-stop shopâ€? is gradually becoming irrelevant except in cases where local control is an actual barrier to development and authorities specifically set out to supersede local control (e.g. consider the Prime Minister’s trade 17 N.T.T, “A Good Modelâ€?. Thanh Nien, Issue No.82 (5569), March 23, 2011. 68 TOOLS FOR ADMINISTRATIVE REFORM and export zones). However, the OSS may remain relevant to (1) the provision of information and guidance, particularly for those who do not make use of electronic media (e.g. small businesses with limited knowledge of and access to the internet), (2) monitoring the performance of separate technical agencies and encouraging compliance with performance standards and (3) centralization of provider/consumer contacts. There are many efficient administrative systems in the world today that do not include the OSS model. The following sections will discuss some other administrative tools — parallel processing, standardization, permit review meetings, information strategy and use of electronic technology, all of which taken together may have a greater aggregate impact on administrative efficiency than OSS. 2 Parallel Processing 2.1 What Is It? Some systems rely on “sequentialâ€? processing in which an application moves from one department or expert to another in sequential order. This alone can explain long processing times, particularly if an application file is always routed through a central desk or department to the next stop. Modern systems, particularly those making use of electronic technology, rely more on parallel processing, in which all departments review the application over the same period of time. Refer, for example, to Box 5 in which the Hong Kong One Stop Centre pledges to distribute completed application documents to each of six interrelated departments within one day of receipt and each department pledges to review the applications in the same time frame. Some paper-based systems require that eight to 10 complete copies of application documents be submitted for parallel processing. Localities may look at this issue to determine whether more parallel processing can be undertaken, either through submission of more application copies or better management of submitted documentation. In Vietnam, parallel processing of administrative procedures is not a new concept. However, government agencies and investors are not commonly aware. The earliest instances of parallel processing formal recognition in normative legislation as a way to save time for investors and encourage information sharing between different agencies appeared in changes to the advertisement licensing procedure under inter-ministerial 69 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM Circular 06/2007/TTLT-BVHTT-BYT-BXD in 2007 and when procedures for business, tax code and company seal registration applications were simplified and implemented in a one-stop shop approach under the joint-ministerial Circular 05/2008/TTLT-BKH- BTC-BCA in 2008. Basically, parallel processing takes place when different line agencies or technical divisions in the same agency handle more than one administrative procedure at the same time, without cross-influence. In this way, parallel processing does not affect each agency’s legitimate requirements for procedures or decision-making. From a legal perspective, parallel processing of administrative procedures may not infringe on any normative legislation, but this point is often ambiguous in normative legislative instruments. Moreover, since explicit guidance is rarely given in related normative legislation, most investors are unaware they can apply parallel processing to particular procedures. In some cases, it is possible a project proposal is fatally flawed in some respects and it would save time and resources to resolve that question before devoting more time to the application. This is an empirical question that can be determined from experience. In some cases the technical conclusions of one reviewer may be essential to the conclusions of another, but these cases are rare. In practice, an objection by one department is usually not decisive in determining the success of an application, but simply one among many questions and issues that an applicant must address. To allow investors to quickly retrieve the outcomes for various procedures, provinces including Ba Ria-Vung Tau, Bac Ninh, Binh Dinh and Thua Thien-Hue have introduced specific guidelines to let investors know which procedures may be legally simultaneously processed. With such provisions in place, investors may decide for themselves whether they want to prepare and lodge applications for parallel processing. Adoption of parallel processing may be considered based on some specific guidance: l The procedures of interest are part of specific processes that include different procedures and the final outcome of the process depends on the completion of the previous procedures. The example given in Figure 10 reveals that the procedures may be completed in a sequence from 1 to 6, with a loose connection between 1-2 and 3-4 (distinguished by lines -----) since the actual links exist only in 1-3, 2-4, 3-5-6 and 4-5-6 (distinguished by lines -----). 70 TOOLS FOR ADMINISTRATIVE REFORM FIGURE 10 Identification of Targets for Parallel Processing Procedure 1 Procedure 2 Procedure 6 Procedure 3 Procedure 4 Procedure 5 (Final outcome) l Procedures that do not require submission of their outcomes or outcomes of other procedures to be approved are highlighted in Figure 10. For example, procedures 1- 2 and 3-4 are not linked and it can be understood that to complete procedures 2 and 4, applicants do not need to submit the outcomes of procedures 1 and 3 respectively, while to complete procedures 3 and 4, applicants will need to complete procedures 1 and 2 respectively. In this way, the diagram in Figure 10 can be restructured as in Figure 11, in which procedures 1-3 are executed simultaneously and similarly for procedures 2-4. FIGURE 11 Implementation of Parallel Processing Procedure 1 Procedure 3 Procedure 6 Procedure 5 (Final outcome) Procedure 2 Procedure 4 The parallel processing approach is helpful to both authorities and applicants: Authorities Applicants l Giving investors a good impression l Understanding the connection of the local business-enabling between various procedures to climate as the process efficiency is properly prepare applications. improved and processing times are l Being able to anticipate the time shortened. needed to complete the process l Making it easier and more and minimize waiting times to manageable to monitor the receive final outcomes. progress of an investment project as l Allocating adequate resources to the process takes less time to complete the process as soon as complete. possible. 71 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM 2.2 Some Local Examples of Parallel Processing in Land Access and Development Permits The comparison of the situations prior to and after adopting parallel processing in several provinces shows encouraging results and changes. BOX 12 Parallel Processing in Bac Ninh Province Bac Ninh Province undertook a diagnostic review of the business access to land outside IZs process in 2008 under an investment climate technical assistance program with IFC. The diagnostic results showed that there were no concrete guidelines governing the sequencing of procedures related to business access to land. Investors were found to perform each of the required nine procedures sequentially. They completed one procedure and obtained approval of the authority responsible for that procedure before proceeding to the next one. Consequently, the process took much longer to complete than necessary. Built on these diagnostic findings, the provincial PC decided to re-engineer the process whereby it would look for procedures that could be processed concurrently so as to increase process efficiency. As a result, the provincial PC issued Decision No.165/2009/QD-UB on November 27, 2009 that introduced process changes from sequential to parallel processing. Sequential processing in Bac Ninh (prior to November, 2009) EIA/Environmental Basic Land Lease/ Land Construction Site Planning Investment protection LURC Selection Certificate Design Certificate Allocation Pricing Permit commitment Parallel processing in Bac Ninh (since November, 2009) Basic Design LURC EIA/Environmental Site Selection Land Lease/ 1 2 protection 3 4 & Planning Certificate Allocation commitment Construction Permit Investment Certificate 72 TOOLS FOR ADMINISTRATIVE REFORM The process map shows that following this decision, investors can undertake procedures in four stages, of which procedures in two stages (Stages 2 and 4) are processed simultaneously. The investor may concurrently lodge applications for different procedures at different agencies at these two stages. For example, in Stage 2 the investor may concurrently undertake the basic design consultation procedure with the DoC, the EIA procedure with the DoNRE and the Investment Certificate procedure with the DPI. Similarly in Stage 4, the investor may concurrently apply for the LURC and construction permit with DoNRE and DoC, respectively. It should be noted that the provincial PC has also made other process improvements at Stage 1, whereby two formerly separate procedures -- site selection and planning certificate (i.e. provision of planning information) -- are now processed in combination due to the two procedures being next to each other in the process and the same agency (DoC) is responsible for processing. Investors no longer have to prepare separate applications for each procedure. Instead, they only prepare one application and can still receive two outcomes at the OSS of the DoC (approval of project site and planning certificate). It is estimated that as a result of this process re-engineering, the time required for investors to complete the whole process will be reduced by 27% (from 151 to 110 days), the number of visits to government departments by 66% (from 36 to 12) and the number of documents required by 46% (from 62 to 33). 73 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM BOX 13 Parallel Processing in Thua Thien-Hue and Binh Dinh Provinces Thua Thien-Hue and Binh Dinh provinces have taken similar approaches to re- engineering the process for access to land under a technical assistance program with IFC. The following process maps demonstrate the before and after situations. The estimated outcomes are also encouraging. In Binh Dinh Province, the provincial PC issued Decision No.159/QD-UBND18 on April 8, 2010 to re-engineer the process, which adopts parallel processing, amongst others. This helps to reduce the number of days required to complete the process from 209 to 112 (46%), the number of visits to authorities from 36 to 20 (44%) and the number of documents from 57 to 26 (54%). Binh Dinh Province before and after Process Re-Engineering Before Site Land Environment Land Land Land Lease Construction Principle Investment Land Basic Compensation Impact Lease/ Pricing Contract, Permit Approval Certificate Selection Recovery Design Assessment Allocation LURC Visits to authorities: 36 Documents required: 57 Days: 157-209 After Basic Design Land Pricing Principle Approval Investment Certificate Environment Construction & Site Selection Impact Assessment Permit Detailed Construction Planning Land Lease/Allocation Visits to authorities: 20 Documents required: 24-26 Days: 74-112 18 Binh Dinh Province is refining this decision after one year of pilot implementation. 74 TOOLS FOR ADMINISTRATIVE REFORM In Thua Thien-Hue Province, the provincial PC issued Directive No.5809/UBND-XT on December 31, 2010. According to this directive, investors now undertake, in parallel and in combination, a number of procedures as illustrated in the diagram below. It is estimated that the improvements result in a 37% reduction in process times (from 169-243 days to 106-152 days today). Thua Thien-Hue Province before and after Process Re-Engineering Before Approval Detailed Evaluation Land Recovery Principal Certificate Basic of Land Investment EIA Construction LURC of Project of Construction Land Use Land Allocation Pricing Approval Certificate Design Permit Implementation Planning Planning Needs Land Lease Visits to authorities: 38 Documents required: 58 Days): 169-243+ After Investment Basic Design Certificate Principle Approval, Detailed Land Acquisition, Construction Planning Information Construction Allocation, Lease Permit and Land Planning Blueprints LURC Recovery Notice Detailed Construction EIA Planning Tasks Visits to authorities: 20 Documents required: 29-32 Days: 106-152 75 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM BOX 14 Parallel Processing in Ba Ria-Vung Tau Province Ba Ria-Vung Tau Province’s following process map is taken from the province’s guidebook on the process of implementing investment projects outside IZs, EPZs and hi-technology zones under the provincial PC Decision No.23/2007/QD-UBND dated April 19, 2007. It shows that Procedures (3), (4) and (5) can be done concurrently. (1) Acceptance in principle of the project (for projects in unplanned areas) (15 days) (2) Agreement of project site or preparation of project site drawings (20 days) (3) (4) (5) Review and approval Review and approval of Investment registration, of the detailed 1:500 EIA/Registration of environment protection evaluation for investment construction plan commitment certificate (30 days) (25 or 5 days) (15,25,39 days) (6) Land allotment, lease, conversion of land use purpose (with site clearance completed) (20 days) (7) Fire control plan review (20 days) (8) Construction permit (if required) (20 days) 76 TOOLS FOR ADMINISTRATIVE REFORM 2.3 Some Further Considerations on Parallel Processing Parallel processing is just one tool among others to enhance the quality of service delivery. The most benefit can be obtained from parallel processing if it is viewed as a part of a package of changes aimed at improving the process. Effective implementation of parallel processing may also require attention to the following: l Common application identifier. Use of common file identification numbers among agencies can facilitate processing and communications among departments (see Section 7.2, Part 3). Assignment of a common file identification number can be delegated to one lead agency, a good task for an OSS. l Standardized documentation. Standardized forms, content and graphics requirements (e.g. content of site plans, content of economic presentations) among all agencies can facilitate preparation of applications and communications among review agencies (see Section 7, Part 3). l Number of application packages. Systems that rely on paper documents must make sure that sufficient copies of documents are submitted to allow simultaneous distribution to all concerned service providers. l Cooperation of all reviewing agencies. Parallel processing only bears fruit if all participating agencies agree and make best efforts to adhere to the same time frame for processing. l Monitoring. Parallel processing may be more effective if there is a department or person responsible for tracking the progress of the application, even if that responsibility is nothing more than a monitoring function. l Review meetings and dispute resolution. Parallel processing would benefit from inter-departmental review meetings at which representatives of the various departments may present their issues and seek resolutions (see Section 4, Part 3). 77 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM 3 Fast-Track for Simpler Projects Practically all advanced jurisdictions have created simplified or “fast-trackâ€? procedures for small or standard projects, thereby reducing the burden on technical staff and allowing allocation of resources to projects which deserve additional scrutiny. In better systems project application requirements and documentation is cumulative and based on the complexity of the project as reflected in quantitative thresholds, such as size or qualitative thresholds, such as location. The development of a small house or a large commercial building can be very different in terms of environmental impacts and risks to health and safety. It is this realization that has led to implementation of “fast-trackâ€? or “expressâ€? processing of certain types of development permits in many countries today. The objective of fast-track systems is to provide an expedited process for designated classes of development activity. To support the expedited service, permit authorities must consider what is essential to properly process various types of development projects and in doing so are often able to eliminate steps and documentary requirements, thereby saving time and costs for the investing public and processing agencies. Simplifying and accelerating the review of simple projects can also free up human resources to be applied to more complex and time consuming projects. Building authorities in some countries suspect that the imposition of the full weight of review requirements on simple projects leads to greater informality and illegal construction and that simplifying procedures for these types of projects actually leads to greater safety. 78 TOOLS FOR ADMINISTRATIVE REFORM FIGURE 12 Steps to Implementation of an Expedited Permit Process for Small Projects 1 Classification What types of applications are received? Are there categories of projects or 2 Risk Assessment applications that are relatively standardized and pose low risk to health, safety and the How are the risks posed by the selected environment? projects different than other projects? 3 Interdepartmental Consultation Are all departments in agreement on the lower level of risk and potential for expedited processing? 4 Process Analysis and Reengineering Will they commit to expedited processing? Given the lower risk assessment, which steps Which signatures are not needed? in the permit process are not required for the selected projects? Which departments do not need to be involved? 5 Analysis and Revision of Application Requirements 6 Stakeholder Consultation Given the lower risk assessment, which documents are not required for review ? How do stakeholders (investors, construction and design professionals, etc) How many complete applications are needed? view the proposed changes? Inputs and suggestions 7 Regulations, Forms and Instructions Prepare new regulations forms and instructions to reflect the modified procedures for expedited review 8 Staff Training Train dedicated staff for implementation of 9 Public Communications new procedure Press announcements, industry workshops, brochures and pamphlets, etc. The common approach to expedited permit reviews in many countries appears to include the following: l Clearly described eligibility criteria and exclusions. The typical fast-track permit system applies to permit applications for smaller commercial and residential projects that do not require extensive work. The usual projects to which fast-track reviews apply include: - Projects of small size, for example 300-500 square meters - Internal modifications to commercial or residential structures - External modifications that do not result in change of size, such as doors, windows and building exterior treatments - Changes to internal systems such as electricity and plumbing - Minor structural changes such as additions to existing residential buildings. 79 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM BOX 15 Expedited Permits in the City of Toronto, Canada The Building Department of the City of Toronto, Canada, has implemented an express permit process for certain types of commercial construction projects which present a low level of risk and comprise a large number of the applications received by the department. The department commits to processing the permit application within 10 days of receipt. The expedited service is available for structures used for light assembly, business, industrial, office or retail activity and include interior alterations for areas up to 300 square meters which involve no land use change and only minor changes to structural or life safety systems. Applicants are required to submit only a standardized application form, permit fee, site plan and construction drawings for review. The similar residential fast-track system implemented by the department is a building permit service for certain types of home renovation projects in existing houses with one or two units. The stated goal of the program is to issue a permit to the applicant “on the spotâ€? — while he/she waits in the office. The maximum process time to which the agency commits to is five business days. The fast- track permit process includes small projects for which a large number of applications are submitted, mainly building additions of up to 50 square meters, external and interior renovations, and construction of small accessory structures. The applicant is required only to submit a standardized application, permit fee, simple plans and drawings for the work that may be done by either the homeowner or a professional designer. The office provides applicants with convenient models for drawings acceptable for submission, including site plans, floor plans, elevations and cross-sections. l Strong commitment to expedited processing times. Many fast-track systems are committed to completing permit processing in an expedited time period that is published as part of the agency’s public service commitment or “citizens charter.â€? l Reduction of paperwork. Fast-track procedures may entail simpler applications and fewer documentary submissions. l Dedicated staffing. The fast-track system appears to work best if it is established as a distinct process with dedicated staff who only work on the expedited procedures. l The fast-track review is often not permitted for projects which entail: - Change of land use - Significant structural changes - Significant excavation works or changes to landscape - Projects located in sensitive environmental or cultural zones. 80 TOOLS FOR ADMINISTRATIVE REFORM BOX 16 Hong Kong “Minor Worksâ€? Program As a good example of “fast-trackâ€? procedures, the Hong Kong Building Authority in December, 2010 implemented a system of “minor worksâ€? intended to simplify procedures for whole categories of minor development and construction projects considered to pose small risks to health and safety. Prior to implementation of this new program, large-scale building works and works of a very simple nature were governed by the same set of controls, including the requirements to obtain prior approval and consent from the Building Authority before commencement of works and to appoint authorized architects, engineers and surveyors registered under the Buildings Ordinance and registered professionals to design and supervise the works as well as registered contractors to carry out the works. It was determined that these stringent requirements for minor works actually created difficulties in control and enforcement and also resulted in many unauthorized building works. The government amended the law and introduced the Building (Minor Works) Regulation [B(MW)R] in May, 2009. A total of 118 building works items were determined to be minor works subject to the new regulation. These minor works were classified into three classes according to their scale, complexity and risk to safety: l Class I (total of 40 items) includes relatively more complicated minor works l Class II (total of 40 items) comprises those of comparatively lower complexity and risk to safety l Class III (total of 38 items) mainly includes common household minor works. Different requirements may apply to each category of risk, but the crux of the new regulation is that minor works can be commenced without the need to obtain prior approval of plans and consent in writing for the commencement of works from the Building Authority, provided that the work is designed and/or carried out by duly licensed professionals. To promote the new system, the Building Authority implemented a comprehensive information and communications strategy (see Section 6, Part 3) which included: l Issuance of new technical guidelines and practice notes on minor works to the construction industry for reference l Distribution of general guidelines on minor works to members of the public and building owners introducing the new system to assist their understanding of the classification of minor works and the appointment of appropriate building professionals and registered contractors for the carrying out of minor works l Collaboration with the Hong Kong Housing Society to set up a Technical Resource Center to provide advisory and enquiry services to the public l Uploading detailed information from the MWCS onto the Buildings Department webpage for the general public’s reference l Establishing a telephone hotline to answer public enquiries l Publishing booklets to introduce MWCS for building owners 81 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM l Making available a free a CD-ROM of the General Guidelines and Technical Guidelines at more than 40 government offices in Hong Kong. The Building Authority’s perceived benefits of the new fast-track system included a decrease in informal building and an increase in safety, as well as more efficient use of the Building Authority’s resources. 4 Permit Review Meetings The opportunity to consult with technical departments prior to, or during, the application process can significantly help facilitate the process. Most service providers today provide ample opportunity to meet and discuss proposals on an informal basis prior to submission of an application. In general, any representations made by service providers at such meetings are reliable. The main problem arises when applicants are required to separately meet with service providers and conflicts arise with regard to requirements. In these cases, the applicant may be forced into a position of intermediating between government agencies to reach a resolution. This system can be inefficient and lack transparency. Some localities have addressed this issue by providing opportunities for applicants to meet with all review agencies simultaneously in ad hoc or regularly scheduled building plan review meetings to present differences and reach a mutual understanding. The benefits of such meetings can include: l Direct communications between technical departments: Face-to-face meetings can avoid misunderstandings and the need for the applicant to translate the demands of one agency for another. l Transparency: Formal meetings are generally on the record with formal minutes. l Preparation: Formal meetings require review agencies to prepare and present their positions in a transparent and clear manner. l Time savings: The formal one-off review meeting can save time on interdepartmental communications and intermediation of the applicant among agencies. l Finality: Decisions taken at formal meetings are presumably final and not subject to reversals for insignificant reasons. This prevents review agencies from coming back for a “second bite at the appleâ€? and extending processing times. In Singapore, the Building and Construction Authority still requires building permit applicants to directly contact technical departments (e.g. fire, environment, roading, transport, parks, monuments and education departments) to obtain approval before a building permit can be issued. However, it conducts bi-weekly building plan approval meetings at which attendance by the separate technical departments is mandatory. An applicant who is experiencing problems with technical agencies’ conflicting requirements or delays in obtaining cooperation from technical agencies, can request 82 TOOLS FOR ADMINISTRATIVE REFORM that the application be included on the agenda of a building plan review meeting, at which a resolution of conflicting requirements and issues can be reached. The meeting does not guarantee a resolution and there is no power to demand a resolution from separate reviewing agencies, but the meeting serves to throw light on the process and requires participants to act transparently and in good faith. The Singapore process is facilitated by other best practices adopted there, including that all applications are assigned a common file reference number at the start of the process, and all agencies must refer to that number in all correspondence. All technical departments are required to provide written technical comments. Moreover, the Building and Construction Authority is authorized to issue a conditional building permit without receipt of all prior clearances provided the applicant submits the necessary clearance prior to project completion. While this may constitute a risk for investors, it also decreases the incentive for technical departments to delay approval. Box 17 describes the role of the building plan review meeting in the Singapore process. There are some pre-requisites for implementing permit review meetings. These may include: l A shared commitment among review agencies to participate and resolve differences: The decision to initiate plan review meetings should come from the highest levels of departmental management to assure the necessary support for the process. l Delegated decision-making authority: Departmental participants in review meetings should have sufficient authority, to make decisions and resolve issues. Lack of decision-making authority could undermine review meetings and lead to multiple meetings. l A commitment to preparation: Departmental management must make sure that departmental staff are committed to preparing for meetings and making meaningful contributions. l Requirements of written reports and comments from technical departments: Participating departments should be required to submit comments in writing for attachment to meeting minutes. l Meeting records and minutes: Meetings should be on the record to assure reliability of representations made by participants. l Regular scheduling: Many localities conduct plan review meetings at a regularly scheduled time and place, putting projects on the agenda as they complete the preliminary requirements. l Preliminary requirements for applicants: Applicants should be required to prepare necessary documents for the review meting in sufficient quantities to provide application packages to all participants. The actual requirements depend on the purpose of the meeting. A truly preliminary meeting may focus only on site planning and environmental issues, while a building permit review meeting may focus on technical plans. In any case, the documentation should be sufficient for the purpose of the meeting. l Time for preparation: All participating departments and customers should be given adequate notice and time to prepare for meetings. 83 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM BOX 17 Role of the Construction Plan Review Meeting in Singapore Activity # Qualified Person (QP) prepares plans and issues the Project Reference 1 Number. QP lodges Project Reference Number and project description with the 2 Building and Construction Authority (BCA). QP may consult the BCA on requirements and apply for waivers. BCA 3 gives written advice. QP submits plans to technical departments (TDs) for their advice and 3a clearance. TDs issue written instructions within the agreed time frame. 3b 3c If there is a delay in obtaining any clearances or a conflict in the 3c requirements of different TDs, QP may request BCA to schedule the 3d case for the bi-weekly Building Plan Approval (BPA) meeting. 3e QP assesses whether clearances can be obtained in two weeks. 4 After clearances from TDs are obtained or likely to be obtained within the next two weeks, QP submits formal application to BCA. The full 5 set of Development Control (DC) plans is NOT required, but the QP must declare that BP does not deviate from DC requirements. BCA registers the application. BCA checks whether QP has submitted 6 all clearances. If all clearances are submitted and BCA requirements are complied 7 with, BCA approves the application within one week from the date of submission. If all clearances are not obtained, the BCA may issue the permit conditionally. 84 TOOLS FOR ADMINISTRATIVE REFORM Diagram 1. Qualified Person (QP) prepares Building Plan (BP) & issues project reference number 2. QP lodges project No 3b. QP pre-consultation reference number and with BCA before project description with submitting plans the Building and Construction Authority 3a. QP submits plans to 3b. 3c. Technical Departments TDs requirements No Conflict among (TD) met? TDs? 4. 3d. QP request Building Yes Plan Approval Meeting Can clearances be obtained within 2 weeks (BPA) Yes 5. QP submits application 3e. 3f. TDs issue clearances Yes to BCA Conflict resolved ? 7. BCA approves with No 6. Are all clearances conditions obtained ? Yes 7. BCA approves without conditions 85 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM BOX 18 Plan Review Meetings in the US Some form of formal plan/permit review meeting has become standard practice in cities throughout the US today. In Phoenix, Arizona, both pre-submission and post-submission meetings are held. The pre-submission meeting is held with the project team leader, staff of city departments, and the customer to review the project, time lines, plans, identify development challenges and opportunities and outline Building Code issues. A project may proceed to the next step only when plan elements are complete and all issues have been resolved at this meeting. The customer then submits the preliminary plans and associated documents to the building department central log-in facility, where plans are then routed to all departments, agencies, and utility companies for review and comments. The building department’s staff then develops a report and marks up the preliminary plans, documenting the conditions for final approval. The applicant is then contacted by the building department for the preliminary review meeting, which may be optional or required, depending on the scope of the project and comments received during the staff review. At the preliminary review meeting staff, invited neighbors and the customer meet to discuss the submission, review the staff report outlining conditions of approval, mark up the site plan and associated documents. Staff will present details that will assist the customer to develop the final construction documents. In Lexington, Kentucky, the building department implements a plan review board meeting each Tuesday at the same hour at which representatives of all reviewing agencies are present. Applicants can make their preliminary submission to each of these representatives and receive immediate feedback on any additional information or corrections that may be necessary for resubmission and approval. In Forsyth County, Georgia, reviewing agencies are given a 15-day review period for each application, and the applicant or a representative is asked to attend a plan review meeting held each Tuesday to collect comments from the various reviewing departments. Applicants are required to sign in between 8:30 am and 9:00 am in the designated meeting room and are called into the plan review meeting on a first come, first serve order according to the sign in sheet. The reviewer’s comments and concerns must be addressed in order to obtain plan approval. Only if there are no comments, can the applicant then apply for the permit immediately. 86 TOOLS FOR ADMINISTRATIVE REFORM 5 Electronic Permit Systems Permit tracking systems (PTS) are electronic "New technology underpins systems that allow localities to accept, process and keep track of applications for permits and regulatory best practice around licenses, and are widely used for land use and the world. Technology makes land development permits. Automation and compliance easier, less costly, and integration of permit processes through PTS more transparent.â€? electronic technology promises great strides in Janamitra Devan, Vice President for Financial achieving administrative efficiency and reducing and Private Sector Development for the World Bank Group, November, 2010. time and costs for government and investors. Electronic PTS can simplify and accelerate permit procedures starting with the application and continuing through to the completion of a project. The benefits of these systems are generally accepted to include: l Fewer procedural steps as communication is more direct and there is no need for file transfers, receipt of applications and manual conveyance of information. l Support for parallel processing by simultaneous submission of standardized documents to multiple agencies. l Enhanced management information allowing the monitoring of inputs and outcomes to meet departmental service quality standards. l Support in handling simple clerical operations to free human resources for more complex work, which helps shorten processing times. l Removal of geographical constraints as information can be freely transferred on a wider scale without the need for face-to-face contact. l Creation of the “virtualâ€? OSS — with electronic technology the concept of posting staff in specific geographic locations becomes irrelevant. l Improved record keeping and access to document archives. l Improved communication with applicants and better customer service. l Improved communications between municipal departments, resulting in better decisions. 87 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM 5.1 Basic Features of Permit Tracking Systems19 PTS are available “off the shelfâ€? from many vendors and offer a wide range of features, from simple to advanced systems. The choice of systems may depend on the locality, the volume of permitting business and the complexity of transactions and the permitting system. The basic features of all systems typically include: l GIS interface (Geographic Information System): Most systems allow users to determine spatial relationships of the land plot that is the subject of the application. This may require integration with an existing GIS parcel data system or development of a new GIS system. FIGURE 13 The PTS System Serves Customers and Service Providers DoNRE Investment Environment PTS • Checklists • Forms Customer Web • Applications Construction • Documents • Tracking People’s Committees Other Technical 19 This discussion is based on a survey of available PTS systems carried out in the US by the Massachusetts Association of Regional Planning Agencies for the benefit of Massachusetts localities. See Automated Permit Tracking Software Systems: A Guide for Massachusetts Municipalities, June 2007. 88 TOOLS FOR ADMINISTRATIVE REFORM l Parcel or project based records: Systems can organize information by applicant name, project name or by land parcel. Organization by land parcel assumes the use of unique parcel identification numbers in the local land information and registration system. l Flexible reports: Many systems allow for the creation of a wide range of reports in different formats and allow users to design reporting formats suitable for their departmental needs. The reports incorporate information stored in the database. Reports may range in complexity from simple spreadsheets to very complex text documents with images. l Additional modules: Many systems allow for the add-on of additional modules that can integrate the work of several government departments into a single software system. Typical additional modules include: building permits, construction inspections, building code enforcement, roads and sanitary systems, property tax, public asset management and human resource management. l Automatic fee calculations: Fee calculations allow staff to quickly calculate fees based on project data entered into the system. l Intra-departmental permit tracking: All systems allow determination of the status of an application at any point in time. l Inter-departmental permit tracking: This function allows comparative assessment of departmental performance by determining which departments have completed reviews of applications or documents and measuring performance times across departments. BOX 19 Enhancing the One-Stop Shop with Permit Tracking System for Building Permits in Nashville, Tennessee (US) The Department of Building Codes Administration in Nashville, Tennessee [US] administers the locality’s land use regulations and also issues building permits and occupancy certificates. It, thus, became an "umbrella" agency for administering the entire permit process. The various municipal departments and agencies with an interest in the permit process (Public Works, Water Services, Fire Marshal, Health Department, Historic Commission, Planning Commission and others) have been linked electronically through a common computer program and database to facilitate the processing of permit applications. This process is commonly referred to as "permit 89 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM tracking". It is through this common tracking system that municipal departments and agencies freely share access to the permit process, administered at the Department of Codes Administration. To further facilitate the effective delivery of services in processing applications for building permits and for customer convenience, departments which have the greatest input into the permit process have located "outposts" of their own departments at the offices of the Department of Building Codes Administration, known as "One-Stop Shops." More than 87% of all permits issued by the department are issued during a single visit to Nashville’s One-Stop Shops. Source: http://www.nashville.gov/codes/services.html 5.2 Intermediate Features of Permit Tracking Systems Larger localities with greater volumes of permit activity may require additional features commonly found only in more advanced systems. These include: l Web interface: Perhaps the most important feature, on which other important features such as electronic applications and customer permit tracking depend, is a web interface. Web interfaces allow staff and the public to view information within the system and/or submit data to the system over the internet. l Automated document distribution: This allows staff to forward documents to each other and to “flagâ€? a document to alert another staff member that a document is awaiting his/her review. l Automated date reminders: Remind or warn staff of approaching deadlines for action on applications and remaining tasks. l Application status checking: Many systems allow the public to check the current status of their permit application through the internet, reliving the staff of the time burden of handling direct inquiries. l Problem tracking: Systems allow staff to flag applications and documents that need additional information or review prior to final approval. l Approval tracking: Allows staff to determine which departments or individuals have approved applications or documents. l Scalability: Scalability allows systems to accommodate more users and information without the need for major software system modifications. This is necessary for localities that predict future growth in demand. 90 TOOLS FOR ADMINISTRATIVE REFORM 5.3 Advanced Features of Permit Tracking Systems Advanced system attributes may be only necessary for large communities with high volumes of activity. Some modern systems are entirely web-based, meaning that all permit review functions are performed entirely through the departmental website to which both staff and customers have access. Examples of advanced PTS features include: l Document annotation: Allows staff to make notes on electronic documents (text files, spreadsheet files, PDFs, CAD files and image files) submitted for review. l Online application submissions: Online application submissions enable the public to submit permit and plan review applications over the internet. With online submissions, the public enters application information at the website and the information is directly stored in the system database, awaiting review. It allows staff to quickly focus on reviewing and responding to applications, rather than managing the time-consuming process of manually entering applications into the system. Online application submissions are typically accompanied by online document submissions, which allow the submission of supporting documents in electronic format over the internet. BOX 20 Electronic Submissions in Singapore The Singapore Building and Construction Authority (BCA) since 2005 has required all building permit applications be electronically submitted through the eCoronet system operated by the BCA. “Qualified Persons,â€? who are licensed architects and engineers, are required to use the electronic system. The eCoronet system also permits the submission of plans to other technical departments for review at the same time, including the Fire Safety & Shelter Department (FSSD), Central Building Plan Unit, Pollution Control Department, Land Transport Authority, Land Transport Authority, Vehicle Parking (LTA, VP), Land Transport Authority, Rail (LTA, Rails), National Parks Board, Ministry of Education and Preservation of Monuments Board. Prior to the submission of the request for a building permit the applicant must obtain planning approval from the Urban Redevelopment Authority, which also operates a totally electronic submission facility. Requests for planning approval and building permits may be submitted simultaneously. All application forms and required documentation for the electronic system are standardized and the same for each recipient technical department. 91 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM 5.4 Costs of Permit Tracking Systems Many factors enter into the cost of implementing PTS. These include: l The choice of system attributes and modules. l The number of agencies integrated into the system, which will affect the number of system users and licenses needed. l The quality of the locality’s E-government operating system and whether upgrades are needed. l The choice to integrate permit tracking with a GIS system. l The locality’s ability to adapt software systems with in-house human resources or its reliance on outside vendors. l If the system is web-based, whether the system is hosted and maintained internally or by an outside vendor. l Whether fees can or should be charged for public access to certain system functionalities. It is important to keep in mind that these systems are designed to reduce time and costs so there may be savings that offset direct costs. For example, savings might be achieved particularly in staff time for preparing reports, calculating fees and dealing with customer inquiries, depending on the capabilities of the system. Savings are also possible from decreased need for inter-agency communications in person by telephone, again depending on the system’s capabilities. These savings have the potential to be long term and significant and should be considered when estimating total costs. Immediate costs of acquiring and implementing available systems “off the shelfâ€? — that is a standard program available for sale from a vendor and not a unique proprietary system developed for a locality — can range from $3,000 to $250,000 depending on the number of user licenses and number of functions. The low figure accounts for a basic system with one to five users and the high figure represents an advanced system with a large number of licensed staff users. In addition to the up-front direct costs, there may be costs associated with system maintenance, servicing and upgrading, which can be from 15%-20% of the initial system cost per year. It should be noted that these estimates are based on systems available in developed country markets and local pricing of the same systems may be lower or higher. Alternative systems developed by domestic firms in emerging markets may be available at better prices. 92 TOOLS FOR ADMINISTRATIVE REFORM FIGURE 14 Construction E-Services in Singapore Visit http://www.bca.gov.sg/eServices/eservices.html for more information. 6 Provision of Information Public administration reform experience from Vietnam and the world indicates that information plays a vital role in successfully adopting a new mechanism and creating practical benefits to public service providers and investors. Moreover, the best performing public sector transformation projects show that communications and information strategies include not only the transmission of information to the public, but also horizontally to other government agencies and personnel of the implementing agencies to help them understand the reform context, needs, benefits and future implications. A key requirement to developing an OSS system for investment, land and construction, plus other procedural or rules changes to land administration and building processes, is to provide information about related procedures in a more comprehensive and systematic fashion to each of several targeted stakeholder groups. Sound information helps stakeholders understand the procedure workflow, steps to be taken by them, where to go to for specific procedures to be processed and many other important aspects of the process. This allows stakeholders to be better prepared when tackling procedures at relevant public service providers. 93 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM For most types of public service transformations, including implementing new legislation and policy, redesigning internal workflows or introducing new methods and technologies to a specific government department, an “information and communications strategyâ€? is a frequently recommended tool to convey the change to an organization and the people it will impact on. For example, a communications strategy helps to identify information flow targets, the type and level of detail and sophistication of information to be developed and the formats and information channels to deliver the information. The communications strategy is a guide from which a plan to provide a further breakdown of detailed tasks based on strategy content can be developed. 6.1 Key Components in the Development of a Communications Strategy The following key components may have to be addressed in the development of a communications strategy. ï?µ Target Audience Analysis: A target audience or stakeholder analysis would identify the stakeholders or constituencies to whom the flow of information would be directed. It would analyze these audiences in terms of needs and interests. The level of communications needed for a member of the consuming public, which can be expressed in media advertising or simple brochures, is not the same as the level that would be directed to primary users of the new system such as design and construction professionals who need more detailed technical advice and procedural maps. Similarly, the needs and access to media of primarily urban and rural audiences may be very different. The analysis must determine the ability of offices of service providers to access different levels of media. The general outline of the target audience would likely include the following: l The general public l Industry professionals, including investors, financiers, designers and construction professionals l Political leadership l Other government departments and agencies l Staff of the implementing agency. ï?¶ Key Content: The information’s content should be tailored to the needs of the audience. A good information program conveys not only the technical information necessary to permit system users to navigate the system, but also the background, justification and benefits of the change. An information program can help to build constituencies for the proposed reform and provide technical education. 94 TOOLS FOR ADMINISTRATIVE REFORM ï?· Choice of Communications Channels: There are many ways to deliver information and the choice of media can affect success. The ways of transferring information need to be diverse and relevant to the volume and content of the provided information to make sure the intended audience gets easy access to it. For example, exclusively providing information over the internet could exclude investors and small enterprises in remote areas. The choice of delivery media should be tailored to the needs of the target audience. Information channels may include: l Posting at the offices of the relevant state agencies: This is the simplest means of distributing information to the public and is required by law in many countries. The posting of information is likely to be a poor means of communicating complex information relative to printed guides and manuals. But, it could be helpful as a checklist of the required content of application packages and guide the flow of work within an agency office for the benefit of office visitors. l Internet/websites: Today agency websites serve as a primary information source -- a place to direct, inform and guide stakeholders and facilitate submission of applications. Websites maintained by land administration and building departments are commonplace. Even if web-based information reaches a relatively small part of the population at this time, this part of the population engages in a disproportionate share of development activity and real property transactions. Moreover, there would be “multiplierâ€? effect in the sense that practically every locality now has at least some access to internet technology. l Agency publications: These include brochures, leaflets and procedural manuals. Many advanced jurisdictions print and provide to citizens and businesses (often for a nominal price to cover costs) complete compendiums of laws, regulations and forms affecting the process. Some agencies issue frequent “practice notesâ€? and technical guides (see Box 19) that clarify and explain changes and steps that will be taken to address issues that arise. This approach sets out the policy and avoids the need to explain it on a case-by-case basis. l Dissemination of information via mass media: This includes radio, newspapers and television. The mass media can be a good channel for delivery of the background, general outlines of changes and a means of developing a constituency for change. The media can spur people to seek more information and show where it can be obtained. A broad spectrum of media should be considered and include not only typical public media, but also trade and professional journals and newsletters. 95 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM l Seminars, roundtables, workshops and participation in trade and civic forums, including local government meetings and hearings: Public forums, organized either by the service provider or stakeholders, can be a useful means of disseminating information to the user community and obtaining community feedback. l Mailing lists: One of the challenges of a good information program is to ensure that key stakeholders are kept apprised of changes to procedures, rules and interpretations, saving them and the service provider time and resources. This is often accomplished by formal announcements in official legal and governmental gazettes subscribed to by industry professionals and other interested stakeholders. Some localities maintain mailing lists and provide notices of regulation or policy changes to professionals and businesses on the list. This is also often done by electronically via email lists. BOX 21 Tailoring the Information to the Needs of the Audience The US Department of Housing and Urban Development maintains a system of publications directed specifically to the topic and the target audience consisting of: l Handbooks: Technical procedure manuals that provide specific steps, submission requirements and forms for all programs and applications. These are binding instructions for applicants and program users. l Guidebooks: Technical discussions of “best practiceâ€? in program implementation, more in the nature of suggestions and recommended practice. l Notices: Instructions to agency staff concerning interpretation and implementation of program regulations, provided to the public to advise on how their applications and submissions will be treated. l Letters: Specific responses to inquiries from the public regarding interpretations of agency regulations considered to have a general applicability and precedential value. l Bulletins: Technical advisories specifically pertaining to issues of building materials and methods applicable to state supported housing programs. 96 TOOLS FOR ADMINISTRATIVE REFORM Most of these are provided and accessed via the web today, but at one time were made available in printed format through mailing lists subscribed by industry professionals, or were supplied on request at agency offices. The Hong Kong Building Authority regularly publishes “Practice Notesâ€? for industry professionals divided into specific content areas, primarily procedure and forms manuals and advisories on changes to, or interpretations of, existing regulations based on recent experiences or specific inquiries. These are detailed and sophisticated regulatory instruments, as opposed to the many brochures, leaflets and videos the agency publishes for the general public on its operations and programs, designed to provide a guide to public interactions with the authority. In each of these cases the information is made accessible through various index systems that facilitate locating the material by name, content, year of publication and publication number. Publication numbering systems are designed to allow easy identification and tracking of changes and amendments to the original publication, particularly important for binding regulations, policy documents and interpretations. ï?¸ Monitoring and Evaluation of Communications: Outputs and outcomes of a communications strategy can be tracked with the aim of refining content and strategies. One key aspect of the information program should be to obtain recipients’ feedback regarding whether the information provided is clear, accurate, comprehensive and is a useful guide to action. Periodic user surveys or other means of stakeholder feedback specifically regarding the quality of communications materials should be included in any overall agency monitoring and evaluation program. 6.2 Posting Information at the Office For the time being, many potential system users may lack access to more advanced media sources and forms of electronic communications. For those customers, the office visit will be a key and initial source of information. Moreover, the way information is presented at the office can facilitate operations by avoiding unnecessary inquiries, false starts and other activities that consume the time and 97 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM resources of the office and customer. Needless to say, the clear and concise presentation of information in the office environment enhances the customer’s perception of the quality of public service. Some considerations to keep in mind when organizing the presentation of information in the office include: l If the posted information is either too cursory or too heavy, investors may find it hard to digest in detail and will be forced to seek hands-on guidance from public service staff, placing a greater burden on resources. In general, the exclusive posting of detailed technical material may fail to educate the general public without more accessible guides (see Figure 15). Documents, leaflets, booklets presented in an easy-to-understand, easy-to-read format will be useful for investors to take home and study. l Information posted in inaccessible, inconvenient and hard to reach places is a burden for customers. Outlining procedure information in a concise way and in conspicuous positions helps investors find the correct places to lodge applications that will be received and processed by the OSS (see Figure 16). l Concise posted information and easy to view workflow diagrams at an OSS helps investors view a complete picture of procedures of interest (see Figure 17). l To provide detailed guidance to investors on how to register and prepare applications, apart from having designated personnel in place to give assistance and answers in person at an OSS, printed forms with detailed guidance on specific items and/or sample filled-out application sets can be placed in boxes for investors’ reference. FIGURE 15 Things to Be Avoided when Posting Information Information posted on A4 paper in separate sheets or thick stacks at a low position as shown in Figure 15 is unlikely to be completely read due to time constraints. If the waiting seats are occupied, the information posted on the board will be more difficult to read. 98 TOOLS FOR ADMINISTRATIVE REFORM FIGURE 16 Location of a Sign Post to Guide Investors to the One-Stop Shop, Ba Ria-Vung Tau Province This sign post is placed near the parking space at the lead-agency OSS for investment, construction and land at the DPI of Ba Ria- Vung Tau Province. Investors, after parking their vehicles, can easily find the correct room to lodge files and undertake procedures. FIGURE 17 Workflow Map Posted at the One-Stop Shop, Thai Nguyen Province A large information board has been fixed to the wall of the DPI’s OSS for investment projects in Thai Nguyen Province. This chart displays the workflows and procedures, in diagram form, that investors will encounter. Each graph illustrates the workflow for a different case, including development projects using land outside IZs and industrial clusters, from land use rights transfer or land requiring site clearance. Information presented in this manner is easy for investors to consume. 99 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM 6.3 Provision of Information via Printed Materials For many people, the procedural manual, brochure or leaflet made available at the municipal office will be the main source of information on rules and procedures. Most people will not have the ability or patience to work through the contents of formal technical guides or manuals needed and preferred by industry professionals. Based on a review of the best current efforts in producing printed materials for land development and investment procedures, it is possible to identify some “best practiceâ€? elements, most of which are common sense elements of good communications in any context: l Plain language: The use of plain, non-technical language is essential to communicating with the public. Technical language, professional or industry jargon and complex concepts are to be avoided. l Brevity: The objective of public communications is to provide a “big pictureâ€? and facilitate the objectives of the customers while at the same time reducing the burdens on the service provider. This does not require extensively detailed materials and anticipation of all possible contingencies and nuances of the process. Some guidance from service providers is to be expected during actual interactions with customers. l “One picture is worth a thousand wordsâ€?: Clear diagrams and other visual aids are perhaps the most effective means of communicating procedural steps and requirements to customers. l Clear organization and headings: Presentation of information in succinct packets with clear headings indicating content assists the customer to navigate through the material and focus on specific needs and questions. l Logical flow of information: Information should be presented in a logical flow, with procedures and events that occur earlier in time presented before those that occur later. Steps, which are prerequisites to further steps, should be presented in the order in which they will occur. 100 TOOLS FOR ADMINISTRATIVE REFORM Figure 18 provides excerpts from an investor’s guide to procedures for land access and development permits developed by Bac Ninh Province’s DoC, DoNRE and DPI in cooperation with IFC. The concise handbook uses a large variety of diagrams and basic colors to highlight different procedural steps and has four main parts: l Part 1. Overview, gives investors an overview of the whole process and procedures for investment and constructions in the province and guides investors through how to seek information, prepare applications, lodge applications and receive outcomes. l Part 2. Procedures and Formalities for Investment and Construction, gives detailed guidance on how to undertake individual procedures, including workflow, documents to prepare, processing times and agencies involved in the process. l Part 3. Points to Remember when Preparing Applications, tells investors what to avoid when preparing applications and procedures. l Part 4. List of Related Legislation, provides a list of legislation at national level (Laws, Decrees, Circulars) and sub-national level (such as those issued by Bac Ninh PC), often the implementing documents to national legislation. In addition, the handbook includes a Contact Information section, which lists provincial and district agencies involved in the procedures, with postal addresses, telephone and fax numbers and blank pages at the end of the book for users to take notes or update any recent changes to normative documents. 101 FIGURE 18 Handbook Guide to the Process and Procedures on Land Access and Development Permits outside IZs, Bac Ninh Province 102 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM Use colors to distinguish steps. For example, all procedures in Step 1 are distinguished by the color orange. TOOLS FOR ADMINISTRATIVE REFORM 103 104 Use colors to distinguish steps. For example, all procedures in Step 2 are distinguished by the color green. SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM These are frequently asked questions, points for attention and common mistakes that investors should be aware of when preparing applications. TOOLS FOR ADMINISTRATIVE REFORM 105 106 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM To download this handbook in English and Vietnamese visit http://bacninh.gov.vn or http://soxaydung.bacninh.gov.vn. FIGURE 19 Handbook and Leaflet Guide to the Process and Procedures on Land Access and Development Permits, Thua Thien-Hue Province These printed materials have a similar design to those of Bac Ninh Province. They are available in English and Vietnamese and can be downloaded at: www.thuathiehue.gov.vn www.skhdt.hue.gov.vn/portal www.sxd.hue.gov.vn/portal www.stnmt.hue.gov.vn/portal TOOLS FOR ADMINISTRATIVE REFORM 107 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM Figure 20 shows a similar investor guide to land access and development permits outside IZs in Ba Ria-Vung Tau Province. It includes the overall workflow and identifies which procedures can be undertaken simultaneously or sequentially and the application composition for each procedure. FIGURE 20 Booklet on the Process and Procedures for Implementing Investment Projects outside IZs, EPZs and Hi-Technology Zones, Ba Ria-Vung Tau Province 108 TOOLS FOR ADMINISTRATIVE REFORM 109 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM For a big picture, some localities provide abbreviated leaflets and handouts. Figure 21 shows a leaflet guiding land access and development permit procedures in Bac Ninh Province. The leaflet’s purpose is to help investors quickly see the big picture and obtain comprehensive information about procedures, such as which procedures to undertake, which agency receives and processes the procedure, which agency makes the final decision and how long the procedure will take. The leaflet comes in tri-fold form. The outer panel outlines key points for investors to note when looking for information and preparing applications. The inner panel provides a procedure diagram and agencies in charge respective of different procedures. Both the handbook and leaflet are readily available at the OSS of the DoC, DoNRE and DPI or the provincial Business Association for any interested investors to pick up. 110 FIGURE 21 Leaflet Guide to Process and Procedures on Land Access and Development Permits outside IZs, Bac Ninh Province Outer panel of the leaflet TOOLS FOR ADMINISTRATIVE REFORM 111 112 Inner panel of the leaflet SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM To download this leaflet in English and Vietnamese visit http://bacninh.gov.vn or http://soxaydung.bacninh.gov.vn. TOOLS FOR ADMINISTRATIVE REFORM 6.4 Dissemination of Information via a Website Using information technology has become an effective and popular channel to disseminate information to investors today. It helps to save costs of printed materials and time of both investors and government officers for face-to-face meetings. The centrality of electronic communications to modern governance requires that special attention be given to the use of these techniques. The benefits of clearly designed websites allowing for easy access and navigation are increasingly being understood by many localities due to current local E-government initiatives in Vietnam. Aside from the physical appearance and functionalities of a site, a review of progressive global city public service websites offers best practice tips in designing website content. The sites’ usual content includes: â—? Description of the agency and its functions â—? Agency performance standards and commitments — “mission and visionâ€? statements — codes of conduct — “citizens’ chartersâ€? â—? Organization of the agency, including management structure and key departments with contact information â—? Complete collection of current and effective agency laws, regulations, instructions and guides, organized by easily used indexes and classifications (e.g. number, year of issuance, topic, etc.) â—? New policy announcements, interpretations and regulations â—? Collection of public communications - pamphlets and brochures â—? Complete collection of agency forms â—? Descriptions and procedural/workflow diagrams for submission of applications â—? Facility for submission of applications (including building plans) (see Figure 21) â—? Frequently asked questions â—? News and new developments â—? Office locations and contact points â—? Inquiries - “Contact Usâ€? â—? Feedback and comments (including complaints) â—? Links to documents and websites of related agencies. 113 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM There are many examples of successful websites for land administration and building agencies that can be accessed as models. Some of these include: Hong Kong Building Authority http://www.bd.gov.hk/english/index_e.html Singapore Building and http://www.bca.gov.sg/ Construction Authority City of New York Building http://www.nyc.gov/html/dob/html/applications Department _and_permits/applications_and_permits.shtml New South Wales Land and http://www.lands.nsw.gov.au/ Property Management Authority City of Toronto (Toronto http://www.toronto.ca/building/index.htm Building) FIGURE 22 An On-Line Licensing Service Web Page Interface, Singapore 114 TOOLS FOR ADMINISTRATIVE REFORM FIGURE 23 A Web Page in the Business Portal of the Economic Development Office, Ninh Thuan Province Figure 23 displays a process map for project site approval, posted on the business portal of Ninh Thuan Province’s EDO (www.edoninhthuan.gov.vn). Investors can access this portal to obtain information and guidance about the process and procedures for implementing investment projects in the province. 115 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM FIGURE 24 The Business Portal of Dong Nai Province Figure 24 displays the interface of Dong Nai Province’s business portal, which is available in five languages (Vietnamese, English, Chinese, Korean and Japanese) at www.dongnai.gov.vn. This facilitates domestic and foreign investors’ access to information about investing in the province. 116 TOOLS FOR ADMINISTRATIVE REFORM 7 Standardization and Simplification of Documentary Requirements 7.1 Standardized Documents and Dossiers The standardization of application documentation applies to the content of documents to be submitted by the applicant and to the composition of the application dossier. Regarding the documents, providing pre-designed forms will allow for better exchanges of information between reviewing agencies and help accelerate the pace of application processing. Pre-designed forms make it easier for applicants to understand and complete documents resulting in fewer returns of applications for amendment. Normative national level legislation is often not released in time or with templates for the necessary forms. Therefore, provincial governments should be proactive in creating and providing applicants with as many forms as possible to make application requirements clearer and easier to comply with. For example, the economic-technical explanation report can be standardized, based on the investment project document. In developing pre-designed forms the following principles should be considered: â—? All related service providers should use the forms. The forms should be prepared in a way that integrates all the information needs of agencies that use the forms. There is no pressure on agencies to use all information in the form. However, it is important all agencies find the information they need in the form. This approach will cut the volume of paper to be lodged by the applicants and the number of contact points that applicants must visit. â—? The forms are designed in a simple, logical and easy to understand format. â—? Examples of completed forms with annotated instructions are available to applicants. â—? The forms reflect professional printing and presentation. BOX 22 Application for Approval in Principle of an Investment Project, Thua Thien-Hue Province Below is a sample application form for approval in principle of an investment project in Thua Thien-Hue Province (as per Directive No.5809/UBND-XT dated December 31, 2010 by the provincial PC on the process and procedures for implementing investment projects in the province). It is designed in a succinct way to help investors easily prepare and provide necessary information. 117 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM APPLICANT SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness Re: Application for approval in .........day month year principle of the investment project To: Thua Thien-Hue People’s Committee Applicant: .................................................................................................... Address/Principal office: .............................................................................. Telephone: ......................Fax: . ......................E-mail: :. ................................ Represented by: .......................................Position: ..................................... ID card/Passport No: ..................................Cell phone: ................................ Business registration certificate No:. ...........................issued by: .....on [date]. wishes to undertake an investment project in Thua Thien-Hue Province with estimated project information below: 1. Main business line or investment project, product: ................................. ............................................................................................................... 2. Location (Hue City, Huong Thuy town, district …), project site, estimated required land area: ................................................................................. 3. Estimated unit cost and scale of main project components:. .................... 4. Funding and funding sources: ................................................................ 5. Project implementing and operational periods: ...................................... ............................................................................................................... 6. Investment mode:  New enterprise  No new enterprise established  Joint venture with domestic investors  Joint venture with foreign investors 7. Other information (if any): ...................................................................... ............................................................................................................... We hereby respectfully request the People’s Committee to consider, assist and provide guidance to us in the process of exploring and implementing the above- mentioned project. Thua Thien-Hue, [date] ......... Applicant (signature, seal) Attachments:  Copies of Business Registration Certificate, incorporation decision (… copies)  Site drawings (if available)  Reference to other projects that the applicant has been undertaking in Vietnam (if any) 118 TOOLS FOR ADMINISTRATIVE REFORM For documents which are not typically attached on a standardized form, which may include a wide range of documents such as maps, site plans, building plans and financial spreadsheets, the best approach is to clearly define the required content of the document in detail so each agency’s data needs are met (see Box 23). This requires minimum content be adapted to the needs of the most demanding agency using the document. BOX 23 Instructions for Required Content of Site Plans, Ludlow Town, Massachusetts (US) All site plans shall be prepared by person/persons registered under the Massachusetts General Laws of the Commonwealth of Massachusetts to practice architecture and/or engineering, and land surveying and shall show the seals of the architect and/or engineer, and land surveyor. All site plans shall be on standard 24" X 36" sheets at a scale of 1 inch20 equals 40 feet21, with additional narrative as necessary: a. Provision for adequate drainage of surface water from paved areas. Use of landscaped areas to provide such drainage to relieve storm drainage systems is encouraged. The piping for the storm water drainage systems shall be designed using the 10-year storm curve for parking area drains and the 25-year storm curve for culverts over existing natural waterways and retention areas. b. Existing and proposed vegetation. Such vegetation shall be indicated by: (1) Type and location (whether woods, brush, shrubs, etc.) (2) Number of plants (if appropriate). c. Existing natural features such as wetlands, rock outcroppings, slopes and hills. d. Pedestrian facilities, if any, including walks, plazas and benches. e. Parking spaces and circulation areas for automobiles as well as the location of landscaped areas within them. Existing and proposed curb cuts shall be indicated together with approval for such cuts from the appropriate town or state agency. The number of spaces shall be in accordance with Section 6.4.2 of the bylaw. 20 The inch is a common unit of length in the US. One inch is equivalent to 0.0254m. 21 The foot is a common unit of length in the US. One foot is equivalent to 0.3048m. 119 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM f. Existing and proposed fencing to be used to buffer abutting residential dwellings and/or districts from the intended development (if appropriate). Section 3.0.4 of this bylaw. g. Existing natural features and vegetation to be retained shall be so indicated. Due regard shall be shown for all existing vegetation and natural features which, if preserved, will add attractiveness and value to the development. h. The location and type of monuments at all property corners shall be shown and maintained. i. Existing and proposed elevations and contours. The contour interval shall be two feet or any interval, which adequately depicts the grading. j. All existing and proposed utilities. k. All site plans required herein shall display names of all abutters. l. All existing and proposed sidewalks and curbs. m. Landscaping requirements: (1) Required landscaping shall be provided as set forth in Table 3. (2) Buffer strips required by Table 3 shall be reserved exclusively for planting, pedestrian facilities such as benches and walkways, required fences, necessary traffic control signs and those free standing signs which conform to the requirements of Section 6.5.2e of this bylaw. n. The plan shall also include a chart showing the following information: (1) Area of lot. (2) Area and size of building. (3) Maximum area of building to be used for selling, offices, business, industrial, or other uses, if applicable. (4) Maximum number of employees, where applicable. (5) Maximum seating capacity, where applicable. (6) Maximum sleeping capacity, where applicable. (7) Number of parking spaces required for the intended use, based on Section 6.4. (8) Number of parking spaces existing at the site (including street parking adjacent to site). (9) Number of trees and/or shrubs. (10) Number of trees and/or shrubs shown on plan. 120 TOOLS FOR ADMINISTRATIVE REFORM Simplification and standardization of individual documents is only half of the job. It is also important to define and standardize the application dossier’s content to make sure all cooperating agencies accept the standardized dossier’s content as completed for individual purposes. Accordingly, the standardized dossier should be designed to satisfy the data needs of all government agencies participating in the review process (see Box 24). Additional steps to take for document management simplification for customers and service providers include: â—? Case files should be opened in each reviewing agency upon receipt of an application or referral of an application from another agency. They should be essentially identical in each reviewing agency. The application dossier records should be interchangeable between reviewing agencies. One way of accomplishing this is by establishing a standard document checklist or index shared by all cooperating agencies requiring that file documents be maintained in the order presented in the checklist. BOX 24 Standardized Application Contents: Land Grading Permit, Sonoma County, California (US) LAND GRADING PERMIT Sonoma County, California (US) Purpose: To identify minimum submittal requirements for grading permit applications and to provide a submittal checklist for grading plans. The following is a summary of required items for a grading permit: Minimum submittal requirements for The following documents may also be grading permit applications: required due to the nature of a project:  Letter of authorization signed by the  A completed permit application form  A completed Grading & Drainage property owner Supplemental Information form  Three sets of soil (geotechnical) reports  Two sets of drainage reports (See GRD-005. Drainage Report Required Contents form DRN-006 for more information)  Plan check fee  Four sets of folded grading plans. 121 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM Grading plans shall include the following items, where applicable: General (shall be shown on all applicable Cover sheet: sheets):  Name of project & site address  Paper size no greater than 24â€? x 36â€?  Purpose statement for project  Drawn to an engineering scale no less  Assessor’s Parcel Number(s) than 1' = 40'  Property owner name & contact  North arrow & scale (written & graphic) information  Date prepared & sheet # of # in lower  Plan preparer name & contact right corner information  Seal & signature of licensed  Vicinity map & location map of site professional  Legend & list of abbreviations  Property lines labeled on all pertinent  Sheet index views & details  Cut & fill table  Locations of right-of-ways &  Amount of disturbed area easements  Reference datum & benchmark(s).  Contours & elevations labeled as existing & proposed Grading plan/site plan:  Structures labeled as existing &  Limits of proposed work clearly proposed delineated  Finished floor elevations of all relevant  Dimensions to property lines & structures structures  Cross sections of cuts and fills  Sonoma County standard notes for grading permits  Cross sections of proposed structures  Space in lower right corner for permit  Recommendations from soil (geotechnical) report. number & approval stamps  All other pertinent construction notes & details. Erosion prevention & sediment control plan:  Limits of disturbed soil/areas clearly delineated Drainage improvement plan:  Best management practices (BMPs)  Drainage improvements labeled as  BMP details & specifications existing and proposed  Protection fencing for waterways and  Subdrains labeled as existing and sensitive areas proposed  Elevations for inverts, flowlines, top of grates and high points Driveways & roads:  Centerline stationing (construction  Drainage specifications (size, material, alignment) length, slope)  Profiles with existing & proposed grades  Structure list for large networks  Cross sections (minimum of every 50 feet)  Cross sections of existing waterways  Typical sections details  Drainage details and recommendations from drainage report.  Cross slopes. 122 TOOLS FOR ADMINISTRATIVE REFORM â—? Assembly of an application dossier should be cumulative. In the absence of a significant passage of time or clear evidence of a change in conditions, data submitted during an earlier stage of the application process should not be requested again at later stages of the process. â—? Certain documents required for a procedure may be prepared and issued by persons other than the applicant, in particular by government agencies. Requiring applicants to obtain certified copies of official documents from the issuing agency can consume significant time and often delays the process. Applicants should not be required to produce or deliver certified or duplicate original copies of an official document produced or issued by a government agency and is in the possession of or accessible to a reviewing agency with minor effort. Simple facsimile copies of such documents may be sufficient as part of an application. â—? An official document should be considered conclusive evidence that the requirements and conditions for the document’s issuance have been satisfied. Applicants should not be required to provide further certifications of official document validity, nor should agency staff be required to investigate the circumstances surrounding the document’s issuance. BOX 25 Receipt of the Application Dossier, Ba Ria-Vung Tau Province Below is the receipt form used by the OSS for investment, construction and land procedures at the DPI of Ba Ria-Vung Tau Province. The receipt lists the required papers in the application for acceptance in principle of the investment project. The officer receiving the application will issue a similarly-designed receipt for different procedures to the applicants. As the receipt includes a checklist of application components, all the receiving officer needs to do is tick the appropriate boxes which helps speed up the pace of receiving applications. 123 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM Bm/SKHDT/TN&TNQ/BNHS/LT-01 BA RIA-VUNG TAU PROVINCIAL PC SOCIALIST REPUBLIC OF VIETNAM DEPT. OF PLANNING & INVESTMENT Independence — Freedom — Happiness -------------------------- --------------------------- Ref. No.: …………….. /BNHS-CTDT Vung Tau, [date], 2010 RECEIPT OF APPLICATION ACCEPTANCE Application for acceptance in principle of the investment project ------------------------------------- The Department of Planning and Investment has received from Mr. /Mrs ...... Address: ....................................................................................................... Tel: ......................................................................................................... Investor: ....................................................................................................... Project name: .............................................................................................. The application has been lodged in 05 packages, one of which is in originals, including: 1/ Application for acceptance in principle of the investment project (form) ...... 2/ Site drawings (if available)..................................................................... 3/ Related papers: - Copies of business registration certificate or incorporation permit (for corporate investors) ........................................................................ - Copy of ID card (for individual investors who are Vietnamese nationals) ...... - Copy of valid passport (for individual investors who are Vietnamese residing abroad, foreigners residing in Vietnam)................................................. 4/ Other related legal documents (if any): ................................................................................................................ ................................................................................................................ Handling timeline: Outcomes to be returned no later than: [date] 2010 Application submitted by Received by (Full name) (Full name) Contact information: - Tel: - Fax: 124 TOOLS FOR ADMINISTRATIVE REFORM BOX 26 Inter-Agency Application Processing Control Sheet in Ba Ria-Vung Tau Province The DPI in Ba Ria-Vung Tau Province designed and used an interagency application processing control sheet in the circulation and processing of applications between the DPI and other line departments. The sheet records the status of responsibility fulfillment of every involved agency. This sheet is not only useful for keeping track of a specific investor’s application, but also benefits the monitoring and evaluation of public service delivery. BA RIA-VUNG TAU PROVINCIAL PC SOCIALIST REPUBLIC OF VIETNAM DEP. OF PLANNING & INVESTMENT Independence — Freedom - Happiness -------------------------- --------------------------- APPLICATION ACCEPTANCE & Ref. No. ……………/……………… OUTCOME DELIVERY OFFICE INTERAGENCY APPLICATION PROCESSING CONTROL SHEET - For procedure: Application for provincial PC’s acceptance in principle of the project - Agency in charge: Provincial Department of Planning and Investment (Economic Development and Investment Division) ------------------------------------- Title of application: ...................................................................................... ............................................................................................................... Applicant: .................................................................................................... Lodged by: ................................................Tel:.............................................. Fax: ......................................................Email:. ....................................... Received by the Department of Planning and Investment on:........./......../2010. Total business days spent: ..................................................business days Processing agency: ............................................................business days Economic Development and Investment Division, DPI to return outcomes no later than … ./… /2010. Application circulating route Date Signature Notes Date of application arrival at the Handed-over by: agency involved Application received by the Received by: agency involved Officer in charge Name: Consultation officer (if any): Feedback date as required: Feedback comments: 125 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM Application circulating route Date Signature Notes Application update request (if any): Reasons for update: Additional furnished documents: Expected date of return after application update Submitted to manager Submitted to DPI management Circulated to provincial PC office Returned by provincial PC office to DPI Ref. No. ……… Date: …. Delivery of outcome to applicant Full name: Other comments Performance evaluation: Days spent ................ Leader of the processing agency Processing division: Leader of DPI APPLICATION ACCEPTANCE & OUTCOME DELIVERY OFFICE DEPARTMENT OF PLANNING & INVESTMENT 7.2 Use of Common File and Document Identifiers It is considered best practice today to assign common numerical file identifiers to all incoming applications, regardless of the department or agency to which the application is first submitted. Use of a common file identifier among all cooperating agencies can facilitate access to information and communications among parties and reduce errors. The common file identifier should be assigned at the submission/intake stage, a step that is clearly made easier if the electronic web-based submission of applications is possible, or if a centralized OSS for the acceptance of applications is in place. To guard against confusion from assigning multiple file identifiers to the same application by different agencies, some precautions can be taken such as: â—? Requiring all agencies to use the same identifier system â—? Requiring the first agency that handles the application to assign an identifier 126 TOOLS FOR ADMINISTRATIVE REFORM â—? Requiring any agency that receives a request to review an application from another agency adopt the identification number that has been assigned to the file. Once established, all future correspondence between agencies and the applicant should refer to the common file identifier and the applicant should be required to include the file identifier number on all documents and other submissions. BOX 27 Creating the Common File Identifier This box illustrates a common technique for constructing unique file identifiers. Common file identifiers can be constructed to provide significant information about the application including, for example, date of application, locality, type of project, procedure requested and the agency to which the application was submitted. Locality Unique Sequential Agency Accepting Identifier File Number Application XX-15/12/2010-XXXX-XX-XX-XX Procedure Application Date Project Type Requested BOX 28 Use of Project Codes in Thua Thien-Hue Province In accordance with Directive No.5809/UBND-XT, dated December 31, 2010 of Thua Thien-Hue provincial PC, providing guidelines on the procedures for investment projects in the province, a project code is generated by the provincial PC for every investment project once an investor expresses interest in the project. The code helps departments and relevant agencies effectively collaborate and support the investor in considering and implementing the project. The investor uses the code in transactions with relevant agencies during the project’s implementation. Agencies processing and approving land access and development permits procedures also rely on this code to exchange information about, comment on, report and monitor the project. The project code has a simple seven-digit structure. The first three digits are the serial number (001-999), the next two are the month (01-12) and the last two are the year. 127 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM NOTIFICATION OF PROJECT CODE PEOPLE’S COMMITTEE SOCIALIST REPUBLIC OF VIETNAM THUA THIEN-HUE PROVINCE Independence — Freedom - Happiness -------------------------- --------------------------- Ref. No.: /UBND-(*) Thua Thien-Hue, [date] Project code -- (Serial No. — month — year) To: ..................................................................... The People’s Committee of Thua Thien-Hue Province welcomes: Investor: ...................................................................................................... Represented by (full name) . .....................Position: ....................................... Principal office: .............................................................................................. Interested in the project ...........................located in .................................... The provincial People's Committee requests relevant agencies to help and support the investor in considering and implementing the project in .........months, with details below: ..................................................................................................................... ..................................................................................................................... For PROVINCIAL PEOPLE’S COMMITTEE CHAIRPERSON C/c: - As above; - Provincial Departments, district PC; - Filing at Admin., (*) Notes: (*) Person in charge In addition, it is considered best practice for service providers in the fields of land use and construction to require that specific types of application documents, in particular technical plans and maps, be coded with alpha and numeric identifiers (“naming conventionsâ€?). This allows for quick access and reference to the documents, the facilitation of communications with the applicant, between different departments and service providers, along with better historical tracking of the application. Box 29 reflects a typical system of “naming conventionsâ€? for documents. 128 TOOLS FOR ADMINISTRATIVE REFORM BOX 29 Simple System of Naming Conventions for Technical Documents Document Project Discipline Code Sheet Sheet Example Type Name Numbers Descriptions Architectural XYZ A 01 001-009 Cover Page XYZ A.1.001 Cover Sheet 02 Index XYZ A.2.001 Index 03 General Notes XYZ A.3.001 Notes 04 Site Plan 05 Floor Plans 06 Interior Elevations 07 Exterior Elevations 08 Details Specifications Structural S 01 Cover Page XYZ S.01.001 Cover Sheet 02 Civil engineering C 01 Cover Page XYZ C.01.001 Cover Sheet 02 03 Landscape L 01 02 03 Electrical E 01 02 03 Mechanical M 01 02 Plumbing 03 P 01 02 03 129 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM 8 Customer Service Customer service is a key to success. This does not only ring true in the world of private sector business and commerce, but is also an essential rule of thumb in the provision of public administrative services. Public administrative service exists to serve businesses and citizens with customers today more knowledgeable and demanding good quality service. 8.1 What do Customers Expect? â—? Transparency: Transparency is expressed through availability, completeness and accuracy of information covering regulations and procedures. Moreover, any decisions made by a public service provider must be based on clearly defined and unbiased criteria clearly communicated to the customer. â—? Efficiency: Efficiency is reflected in rapid decision-making and low compliance costs (time and money) to businesses. â—? Communications: Public service staff listening to and giving clear responses to clients defines good communications. Staff members are self-motivated and take the initiative in informing clients about the status of applications and identifying/solving any problems that may arise. â—? Certainty: Certainty is reflected in the commitment of a public service provider to the quality of the services rendered to clients, especially in setting processing time limits and making sure that staff members are able to carry out the commitments. Equal treatment of each client in terms of processing, requirements and service quality also play a significant role in the building and maintaining of clients’ trust. â—? Accessibility: Accessibility is found in the diversity of physical access to public services, such as visits to the office, telephone Q&A sessions, information provided on the agency’s website and electronic mail exchanges. On top of that, businesses expect that agency staff will be reasonably accessible during regular business hours and senior officers will be available to resolve conflicts and exercise discretion when needed. â—? Accountability: Accountability is reflected in the fact that every staff member is responsible for applications received, treats the applications in accordance with existing laws, regulations and procedures, and is held accountable by senior management for his/her actions. 130 TOOLS FOR ADMINISTRATIVE REFORM 8.2 Essential Elements of Customer Satisfaction There are three essential elements that bring customers satisfaction, (i) the quality of products and services, (ii) convenience and (iii) the human factor. The service quality that businesses receive when visiting a public service provider is not only reflected in the solutions it provides to questions, but also the overall quality of the experience and feeling of goodwill that clients develop when working with a public service provider. Customer-Centered Service Approach Constructing a customer-centered service system is vital to good customer service. The system should include rules, processes and ways to run the system. The system’s development often comes from the institution’s top and middle management. If the system is designed without customer-centered content, results will be limited to situational solutions and the institution will fail to grow no matter how many hospitable employees are recruited. It should be noted that having a system in place is not enough. The system can only operate well when all staff are equipped with adequate customer service knowledge, skills and attitude. They are an important bridge between the institution and customers. Therefore, no matter how good the customer service policy is, there will be gaps if the bridge is not ready. Important Customer Service Skills One of the most important customer service skill sets is understanding customers’ needs. Understanding customers is a solid foundation of customer satisfaction and the foundation allows staff to build various types of skill sets to successfully handle situations. “Understanding customersâ€? skill set: â—? Observation skills â—? Active listening skills â—? Questioning skills. “Handling situationsâ€? skill set: â—? Communication skills â—? Dealing with customer complaints skills â—? Negotiation skills. 131 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM BOX 30 Practices Recommended and Not Recommended when Dealing with Customers With regard to the human factor, the foremost requirement for customer care staff is a positive attitude, and only after that come experience, expertise and appearance since the latter can all be developed and improved once a good attitude is in place. Below are things recommended and not recommended for public service providers as far as attitude toward clients is concerned. Recommended and not recommended telephone communication etiquette RECOMMENDED: NOT RECOMMENDED:  Pick-up the phone at the first ring ï?? Leave the phone ringing  Saying agency/organization name ï?? Curtly say “Helloâ€?  The answerer identifying him/herself ï?? Be on the phone while doing  Listening carefully other things  Having necessary information ï?? Not taking notes readily available ï?? Forgetting promises.  Be enthusiastic in finding the answers to problems. Photo: Some class activities during customer service training courses at Binh Dinh and Thua Thien-Hue provinces funded by IFC. Participants were government staff whose duties are to guide investors. They included staff from OSS and select technical units of Planning and Investment, Natural Resources and Environment, Construction, Industry and Trade, Agriculture and Rural Development departments, provincial PC and district PC offices and management authorities of industrial zones. In the photos, the trainer from Unicom was facilitating class activities to practice collaboration skills (top left corner) and change of habits (bottom right corner). 132 TOOLS FOR ADMINISTRATIVE REFORM Recommended and not recommended behavior in communicating with clients making complaints RECOMMENDED: NOT RECOMMENDED:  Listening carefully ï?? Making excuses  Showing empathy ï?? Arguing  Making a real effort and showing ï?? Denying the client’s feelings concentration in finding the (anger). answers to the problem Source: Excerpts from a presentation by Tam Viet Training and Consultancy agency in a customer care skills course for public service staff in Bac Ninh Province. Training was supported by IFC, February 2007. Therefore, excellent customer service is made up of two core elements: A Customer- Centered Service System and Staff Skills. Being customer-oriented needs to become a culture within the institution and be displayed by all staff and units of the institution. Customer service needs to be continuously improved and renovated. 8.3 Citizen’s Charter Government commitments at central and local levels to provide good quality services to businesses, organizations and citizens is critical to improving the efficiency and effectiveness of public administrative services. In many countries, governments at central and local levels have expressed their commitments by way of a “Citizen’s Charterâ€?. The “Citizen’s Charterâ€? concept was first articulated and implemented in the United Kingdom in 1991 as a program to continuously improve the quality of public services. The Citizen’s Charter concept has since been adopted around the world and current users include Australia, Bangladesh, Belgium, Canada, France, India, Ireland, Italy, Jamaica, Malaysia, Mexico, Nepal, New Zealand, Portugal, Spain, the Netherlands and the Philippines to name just a few. It is a government initiative to organize activities under the principle of transparency and clarity in terms of quality standards and obligations in providing services. 133 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM It is based on the assumption that citizens contribute to public services by paying taxes and have a fundamental right to good quality service at reasonable costs in an efficient, fair and accountable way. A charter can be in any form, from a general statement of commitment to service standards to a detailed list of rights citizens are entitled to when interacting with a government agency. It is a written and publicly announced document that comprises some or all of the following components: ï?µ Vision and mission statements: The first key component of a meaningful Citizen’s Charter is a clear statement of vision. A vision statement may emanate from an open and consultative process, involving multiple points in the organization as well as citizens, client groups or stakeholders. The mission statement provides specific objectives, which drive the organization in tune with its vision. ï?¶ Details of business transacted by the organization: The charter should clearly identify the services, which would be provided by the organization to attain its mission and vision. This should list all the services made available through its various agencies. In the charter, there should be a clear identification of the levels at which specific services are provided. ï?· Details of customers/clients: Organizations with a number of client groups may have different services for different client groups. The charter should list the services for each client group and the ‘commitments’ for each of such services. ï?¸ Specification of time frames for each service: There should be a clear commitment about the time frame for delivery of specific services in the charter. ï?¹ Specification of service quality and delivery standards: A charter must indicate the specific quality standards to which the organization is committed. This will enable the citizens/client groups to exercise choice where available and raise their voices when necessary to ensure that quality service is made available. An organization is also obligated to exercise internal controls once standards are publicly specified. A charter should provide a clear commitment on service delivery standards such as access, accuracy, affordability, courtesy, delivery, fairness, reliability, responsiveness and sensitivity of services. These should be measurable and enable the organization to chart its performance. ï?º Information about public grievance and redress procedures: Awareness of grievances is the first step, which an organization can take towards introducing 134 TOOLS FOR ADMINISTRATIVE REFORM corrections to its operations. A charter should clearly lay down the procedures for redress of grievances. ï?» Procedures for inviting citizens’ suggestions/inputs: A charter should invite suggestions from the public about the organization’s activities and functions, spell out procedures for submitting suggestions and commit to seriously consider suggestions. ï?¼ Information about a monitoring mechanism to ensure compliance with commitments: There should be clear information in the charter about the monitoring mechanisms created by the organization to ensure the charter does not remain merely a superficial document, with little capacity to ensure its own implementation. This monitoring mechanism may include people from the organization and those outside clients/stakeholders or civil society groups. There is a great deal of information and guidance on the creation of various “Citizen’s Chartersâ€?. Frequently the process entails consultative activities with citizens and stakeholders to determine reasonable objectives and standards, test the concept and monitor its implementation. In its “Seven Steps to a Citizen’s Charter with Services Standards,â€? a practitioner’s handbook, the Innovative Public Services Group of the European Public Administration Network identified the main steps as in Figure 25.22 Photo: Quality norms, Ho Chi Minh City 22 Seven Steps to a Citizen’s Charter With Service Standards: Implementation Plan for Governmental Organizations, Netherlands Ministry of the Interior and Kingdom Relations, September, 2008. 135 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM FIGURE 25 Seven Steps to a Citizen’s Charter with Service Standards 1 Decide to adopt the citizen's charter. Consult with senior management, staff and stakeholders. Be clear about objectives. Set target date for implementa- tion. Budget for process. Designate a project manager. 2 Draft the service standards. Precise, concrete, important, quantitative , measureable, verifiable. Include procedures for redress of complaints. 3 Consultations with staff and stakeholders. Conduct internal and public meetings. Revise service standards as necessary. 4 Write the charter. Preliminary publication and testing of charter. Stakeholder feedback and revision of charter. 5 Publish the charter. Communications strategy. Various formats (paper, web,). Professional design. 6 Monitor implementation. M&E strategy and systems. Customer survey and feedback. Periodic evaluation. 7 Integrate results into policy making. 136 TOOLS FOR ADMINISTRATIVE REFORM BOX 31 Customer Contact Charter, London Borough of Sutton, the United Kingdom (2007/2008) Customer Care We aim to give the highest standard of customer care to all members of our community. When contacting us you can expect: â—? Staff to acknowledge you, be courteous and give their name and the service area â—? Your dealings with us will be treated as confidential and we will tell you if the information you provide is to be used for any other purpose â—? Our customer service staff to take ownership of your issues or problems and to resolve these issues at the first point of contact and not pass you on to anyone else unless necessary â—? To have a choice of access methods to suit a range of needs â—? Not to be kept waiting too long â—? Clear communications â—? We will provide additional facilities for hearing and sight impaired customers and those whose first language is not English. Corporate Standards Telephone calls We are changing the ways we deal with telephone calls to our published numbers by creating contact centers that can deal with all requests effectively. You can continue to use the numbers you have previously used. However, we have created easy to remember numbers to eventually replace the existing 67 numbers. â—? The telephone numbers for our main services are listed in “Contacting your council -- an A-Z guideâ€? available from council reception desks. Information is also listed on our website www.sutton.gov.uk. â—? We aim to use answer phones as little as possible. â—? If you do leave a recorded message we will get back to you by the end of the next working day. If you don't get through to the right person straight away, our staff will transfer you or ask the right person to telephone you back. 137 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM When you visit our offices â—? One of our receptionists will see you quickly (and you can recognize them by their name badges). â—? We aim to see all callers within three minutes, but at busy times you might need to wait longer. â—? We will provide a comfortable waiting area and an opportunity to discuss your business privately. â—? Our receptionists have experience of dealing with most enquiries themselves. Sometimes someone from one of our service areas will be better able to help you. When you visit our Civic One Stop Shop â—? If you need to see someone in our OSS, our receptionist will give you a ticket or call the appropriate person to see you. â—? We aim to see all callers within 30 minutes if they do not have an appointment and within five minutes if you have an appointment. â—? If queues get too long we will bring down more staff from service areas. â—? We aim to resolve 80% of queries at first point of contact. Source: www.sutton.gov.uk 138 TOOLS FOR ADMINISTRATIVE REFORM BOX 32 Customer Satisfaction Survey regarding the Quality of the Public Administrative Services, Danang City In their following announcement, the provincial PC of Danang City has publicly informed their decision and plan to conduct a customer satisfaction survey with organizations and citizens for public administrative services provided by the city, including procedures for construction, using the SERVQUAL model. The purpose is to assess the service accessibility, quality and cost as well as complaint redress. Source: http://chongthamnhung-danang.com/caicachhanhchinh.php?kind=detail_news&id_news=332 Quick notes about the SERVQUAL model: This is one of the most common current approaches to service quality assessment. In practice, service quality reviews often center on this model or derivatives of this model. Customer surveys are conducted based on five perspectives to define five different gaps in service quality. 139 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM The five considerations Reliability The ability to deliver the For example: promised services reliably. - Returning the applications and outcomes on time. Assurance Staff members’ expertise For example: and etiquette creating - A comprehensive, reliable trust and belief. information desk - Experienced staff. Tangible Physical materials, For example: equipment, staff - Information desk, application receipt costumes. and outcome return windows - Uniforms, badges with names and positions of OSS staff. Responsiveness Willingness to help and For example: quickly deliver services of - Effective and punctual processing the staff. system - One-stop shop and other specialized unit staff are quick and dedicated in answering clients’ questions and catering to clients’ needs. Empathy Providing customized For example: services, understanding - Staff listen, be patient and are able and taking care of to anticipate a customer’s needs. customers. The five gaps Positioning The service provider fails to understand what the customers expect. This will lead to the design and delivery of services that do not correspond to what the customers expect. Specification The service provider fails to put in place service quality standards to meet customers’ needs. Delivery The service delivery process fails to meet service quality standards. The staff, process and system fail to deliver services in accordance with the required standards. Communication The promises made in the media are not consistent with actual performance. Perception The perception and experience of using the services rendered in practice are not consistent with the expectation on service delivery and performance. 140 TOOLS FOR ADMINISTRATIVE REFORM 9 Monitoring and Evaluation Monitoring and evaluating (M&E) public service quality is essential in What is Monitoring and Evaluation? closing the gap between actual service Monitoring quality provided by government A continuous data collection and analysis process implemented to assess a project agencies and the expectations of (a program or a policy) and compare it businesses and citizens. Good service with the expected performance. quality is achieved when the service Evaluation rendered meets or surpasses the A systematic and objective measurement expectations of business and general of the results achieved by a project, public clients. Nevertheless, to compare program or policy, to assess its relevance, and identify the gap, every agency coherence, efficiency of implementation, effectiveness and impact, as well as its needs to develop specific evaluation sustainability. criteria to collect information and measure outcomes. Source: The World Bank 9.1 Components of a Good Monitoring and Evaluation System The components of implementing a good M&E system are well known and the subject of widespread agreement. They include: FIGURE 26 Components of a Good M&E System Identify Desired Outcomes Use the Set Goals Informtion Steps to a Good M&E System Implement Data Identify Gathering System Indicators Collect Baseline Data 141 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM ï?µ Identifying the outcomes to be monitored: The first step in establishing the M&E system is to identify the set of outcomes that should be monitored. These outcomes will most likely arise from the performance standards established in the process of creating a customer care system (see previous Section 7) and might include the time for processing applications, the numbers of applications processed, inquiries handled or complaints received. ï?¶ Setting goals and objectives: Once the desired outcomes are identified it is necessary to establish the performance targets in terms of measurable time, costs and other quantifiable indicators. ï?· Associating indicators with What is an Indicator? outcomes: Indicators are how we measure success. They can be Indicators are measurable variables, which quantitative or qualitative. A are used to measure certain aspects of a complex variable. quantitative indicator is the average time taken to process a Example: Social class is measured by means of occupation, housing conditions, permit application. A qualitative transport media, educational level and indicator can be the satisfaction of other indicators. customers with the quality of Indicators are a measure that can be used service provided. Both types of to help describe a situation that exists and indicators can be important to measure changes or trends over a measures of success. In many cases period of time. the relationship of the indicator to Indicators should be SMART: the desired outcome is clear. In other Specific cases the relationship may be more Measurable tenuous. Growth in investment may Achievable be, but not necessarily, related to changes in administrative Relevant performance. In some cases careful Time-bound thought should be given to how Although it is desirable to use quantitative indicators, it has to be taken into account the indicator is related to the that they describe only selected aspects of desired outcome. reality (i.e. of a complex variable). In some cases the qualitative description of the ï?¸ Gathering “baselineâ€? data: phenomena observed reflects reality Baseline data measures the much better than quantitative indicators. conditions that exist today, prior to Frequently, both quantitative and implementation of administrative qualitative (descriptive) approaches complement each other. reforms and provide a frame of Source: The World Bank 142 TOOLS FOR ADMINISTRATIVE REFORM reference for measuring change over time. Without baseline data, it is impossible to measure the impact of an action. ï?¹ Designing data gathering systems: Management information systems should be designed to gather the necessary data to monitor performance. For example, files and application dossiers should record all relevant dates of actions and decisions — from submission of the application to final decision — and allow calculation of time spent in specific review functions and by individual staff members. Electronic file and permit tracking systems (see Section 6) are ideal for providing M&E data continuously and accurately. Data should be collected continuously, aggregated and presented at regular intervals for purposes of comparison and measurement of progress. ï?º Monitoring data and using it in management and policy decisions: Most importantly, data should be reviewed by management, discussed with staff and it should inform management and policy decisions. For example, data should enter into staff performance reviews. BOX 33 Customer Survey Questionnaire, Ho Chi Minh City Customer surveys are important tools for the monitoring and evaluation an agency’s performance. A sample business survey, used by Ho Chi Minh City’s DPI, is pictured below. The questionnaire is designed with answer options so that respondents only need to tick the appropriate choices. This is useful for saving respondents’ time and assisting the compilation of feedback. The questionnaire does not require respondents to provide names since most business respondents may feel uncomfortable providing such information. 143 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM CUSTOMER QUESTIONNAIRE Date ....../....../200..... (This is an anonymous survey) No................ Dear Customer, In order to provide better quality service, we would like to have your assessment opinions. Your input is important for us in our attempt to continuously improve our service quality. BUSINESS REGISTRATION PROCEDURE (Please tick one) o New o Amendment/Revision o Dissolution MEETING THE SET DEADLINE (Please tick one) 5 Very satisfied 4 Satisfied 3 Acceptable 2 Not satisfied 1 Very bad o Other: ..................................................................................................................................................... ................................................................................................................................................................................ EASY AND CONVENIENT PROCEDURE (Please tick one) 5 Very satisfied 4 Satisfied 3 Acceptable 2 Not satisfied 1 Very bad o Other: ..................................................................................................................................................... ................................................................................................................................................................................ TRANSPARENCY IN PROCEDURE GUIDANCE (Please tick one) 5 Very clear 4 Clear 3 Acceptable 2 Not clear 1 Very bad o Other: ..................................................................................................................................................... ................................................................................................................................................................................ INFORMATION EXCHANGE WITH ENTERPRISES (Please tick one) o Directly o Via telephone o Via document o Via fax o Via email 5 Very clear 4 Clear 3 Acceptable 2 Not clear 1 Very bad o Other:: ..................................................................................................................................................... ................................................................................................................................................................................ HANDLING CUSTOMER COMPLAINTS (if any) 5 Very satisfied 4 Satisfied 3 Acceptable 2 Not satisfied 1 Very bad o Other: ..................................................................................................................................................... ................................................................................................................................................................................ WORK ENVIRONMENT AND AREA OF THE APPLICATION RECEIVING AND RESULTS RETURNING UNIT 5 Very good 4 Satisfied 3 Acceptable 2 Not satisfied 1 Very bad o Other ..................................................................................................................................................... ................................................................................................................................................................................ WORK ENVIRONMENT AND SPACE OF THE INFORMATION INSTRUCTION UNIT 5 Very good 4 Satisfied 3 Acceptable 2 Not satisfied 1 Very bad o Other ..................................................................................................................................................... ................................................................................................................................................................................ 144 TOOLS FOR ADMINISTRATIVE REFORM OTHER OPINIONS (please specify): ................................................................................................................................................................................ ................................................................................................................................................................................ ................................................................................................................................................................................ ................................................................................................................................................................................ ................................................................................................................................................................................ ................................................................................................................................................................................ ................................................................................................................................................................................ ................................................................................................................................................................................ ................................................................................................................................................................................ ................................................................................................................................................................................ ................................................................................................................................................................................ ................................................................................................................................................................................ ................................................................................................................................................................................ ................................................................................................................................................................................ ................................................................................................................................................................................ ................................................................................................................................................................................ ................................................................................................................................................................................ ................................................................................................................................................................................ ................................................................................................................................................................................ ................................................................................................................................................................................ ................................................................................................................................................................................ ................................................................................................................................................................................ ................................................................................................................................................................................ ................................................................................................................................................................................ DO YOU HAVE ANY SUGGESTIONS FOR THIS SURVEY? ................................................................................................................................................................................ ................................................................................................................................................................................ ................................................................................................................................................................................ ................................................................................................................................................................................ ................................................................................................................................................................................ In your opinion, how often should this survey be conducted? o Monthly o Quarterly o Yearly o Upon the return of each result o Other:........................ Thank you very much for your time and effort! To: LUU VAN TRAN HEAD OF ADMINISTRATIVE OFFICE DEPARTMENT OF PLANNING AND INVESTMENT, HO CHI MINH CITY 32 Le Thanh Ton, District 1, Ho Chi Minh City Tel: 8237490 145 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM 9.2 Measurement Indicators In order to determine whether a simplification initiative has been successful, it is necessary to conduct an evaluation, essentially taking a “beforeâ€? and “afterâ€? snapshot of performance. To do this, the diagnostic phase should include a benchmarking exercise to capture performance indicators prior to the process design (see Part 2). The following are common indicators, which should be considered when “measuringâ€? the simplification: â—? Number of document requirements: The number of documents required to be submitted in connection with a request associated with a given procedure. A simplification initiative should aim to reduce unnecessary and overlapping documentary requirements and increase standardization of documents among relevant agencies (see Section 7, Part 3). â—? Number of steps in each procedure: Each procedure can be broken down into a series of steps. Each step is a potential point where delays can occur. In other words, adding a step to the process will result in more time needed to complete the process. Conversely, removing a process step will result in less time needed to complete the process. Thus, one objective for a procedure’s overall simplification would be to minimize the number of steps. â—? Number of visits to authorities: Multiple visits by an applicant to government offices to undertake procedures are likely if agency staff fail to thoroughly guide the applicant through the application’s preparation and each process step. â—? Time to complete a process: This is an important indicator as it flags the process’ efficiency. The number of days necessary for completion of the procedures, starting from the application’s date of submission to the receipt of results, is counted. â—? Cost to customers: The cost to a customer is represented by filing fees and time lost dealing with government agencies in connection with uncompleted requests. It is worth noting that reduced costs need not force a decrease in local government revenue, since a better administrative process may encourage more investment projects, thereby creating more jobs and revenue. â—? Cost to local governments: Costs consist of overheads for administering the procedures, such as personnel, office rent, utilities and office equipment costs. â—? Percentage increase in compliance: The percentage change in the number of investment projects that comply with the new simplified process as compared to that before the simplification initiative. For example, the percentage change in the number of construction projects without construction permits before verses after the reform of the construction permitting process. 146 TOOLS FOR ADMINISTRATIVE REFORM BOX 34 Introduction of Standard Cost Model The compliance cost measurement approach is often called the “Standard Cost Modelâ€? or “Standard Cost Measurementâ€?, (SCM). The approach was first developed in the Netherlands and has been widely used in many countries, especially in Organization for Economic Cooperation and Development (OECD) member countries. Procedure compliance costs measured in this approach include administrative, direct financial (fees and charges) and indirect financial costs, as briefly described in the graph below. Public administration procedure Activities that a business has to do to comply with a procedure Number of Compliance Time Labor cost Fees & charges Indirect cost subject entities frequency (T) (L) (F) (I) (N) (Fr) Administrative cost for an activity Total number of activities / year C = (T*L) + F + I Q = N * Fr Total cost of the procedure TOTAL COST = C X Q Administrative cost: Expenses of preparing application documents and contacting relevant authorities to undertake the procedure. This cost is calculated based on the time needed for the subject entity (institutional or individual service user) to complete the procedure and the entity’s income. The administrative cost for an activity equals the time needed to complete it (T) multiplied by the labor cost of those doing it (L). The sum of accumulated cost of all activities to complete a particular procedure and the fees and charges (F) for the procedure is the administrative cost to comply with the procedure. 147 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM Indirect financial cost (I): Money or resources that a business pays to meet the requirements and criteria set by a procedure, e.g. procurement of more equipment to meet the criteria on physical facilities or investments to a alter product series. Number of subject entities (N): The total number of individual or institutional service users who are required to perform the procedure every year. Frequency of compliance (Fr): Average times an individual or institutional user has and will have to comply with the procedure each year. The sum of all the components above makes the total annual cost for a procedure. For example, preparing an application for a procedure takes 30 minutes (0.5 hour). The monthly wage of the employee preparing the application is VND3 million a month (or VND15,625/hour). The cost for preparing the application will be 0.5 x 16,625 = VND7,812.5. Every year, about 100,000 companies have to perform this procedure once. The total cost to prepare applications for that particular procedure will be 7,812.5 x 100,000 = VND781,250,000. In this case, the compliance cost for a single activity of preparing the application alone is already VND781,250,000. The total cost for an entire procedure, the accumulated cost for all activities in the process, can therefore be worked out. In Vietnam, SCM has been used in Project 30 for procedure simplification in public administration processes during 2007-2010, as a way to quantify the benefits of procedure simplification by comparing the total procedure compliance costs before and after the reform. 9.3 Evaluation Phase The completion of the implementation phase concludes the transition from â€?oldâ€? to “newâ€? processes, but not the end of the simplification initiative. The evaluation phase is intended to measure the effectiveness of process changes and usually consists of two stages: 148 TOOLS FOR ADMINISTRATIVE REFORM Post-Initiative Assessment This assessment is intended to determine whether the changes made have actually resulted in improvements (outcomes). The following factors should be considered: â—? Allow sufficient time to pass before an effective post-initiative assessment report is prepared. It should occur when results are expected, e.g. six months after the launching of simplified procedures â—? Consider retention of independent evaluator â—? Solicit feedback from internal and external stakeholders â—? Compare results to original objectives and baselines, document positive and negative results from stakeholder feedback, lessons learned and draft recommendations for possible changes/improvements â—? Disseminate evaluation results to key stakeholders. Post-Implementation Assessment This assessment is intended to ascertain whether the changes have resulted in positive impacts. Impacts may occur after a longer period of time, usually 12 to 18 months following the simplified process’ implementation. The assessment serves an audit function to ascertain whether there has been any deterioration in performance since the completion of the simplification initiative and may also uncover steps or requirements that have been reintroduced into the regulatory process. FIGURE 27 When to Measure Simplification When to Measure Simplification Start of Completion of Simplification Initiative Simplification Initiative 1. Initial Measurement at Process Mapping Stage 2. Post-Simplification Measurement 3. Audit Measurement Source: Simplification of Business Regulations at the Sub-National Level, IFC, 2006. 149 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM CONCLUSION Evidence has shown that provincial governments have a vital role in translating policies and regulatory systems into reality. However, the self-motivation and innovation to adopt reforms to make life easier for businesses and citizens have resulted in different levels of economic development between provinces, as evidenced by PCI studies. With this in mind, this book is intended to introduce specific approaches and instruments to be used by provinces in their public administration reform efforts and in land development. Finally, there are a few things to take note of when using this book. The case studies in the book are provided to provide a clearer picture of reform tools, alongside local and international good practices that may be used as reference points in public administration reform. They are, however, not necessarily all the existing best practices in Vietnam and other countries, given the limited scope of this book. The book is also not intended to formulate a “one and onlyâ€? approach recommended for all provinces, since every reform approach has its own strengths and weaknesses. We hope the findings and analyses in this book will provide useful and effective information to help different provincial governments select and generate the most efficient strategy in relation to land development procedures, tailored to their specific needs. The approaches and instruments introduced in this handbook are the most common tools in use and have proved their usefulness to municipal governments in their reform attempts, particularly in harmonizing and aligning land access and development permits procedures. They are, nevertheless, not the only tools available. The reform process may require a combination of these tools with others to make the process more efficient. Reform is underway in a great variety of provinces. We are aware that in order to uproot the existing public administration reform problems, national level institutional reform will be instrumental. On a parallel note, in the long run, barriers and challenges associated with procedures that emanate from regulatory framework limitations should be tackled in a coherent and systematic manner on a national scale by national agencies. The good practices presented in this handbook may be used as a source of reference and to assist the decision-making process for adjustments to related regulations. As a result, new procedures will provide the highest possible efficiency, enshrining the principles of the rule of law. Ultimately, process innovation only contributes one part to the success of the reform process, as the remaining and decisive part rests with the people putting the process into practice. The cooperation between different line agencies and the professionalism of public officials and employees are crucial factors to making any process successful. In order to generate momentum and promote these elements in driving reform ahead, effective management tools including emulation, awards, disciplinary treatment and incentives are vital and should go hand-in-hand with the reform process itself. 150 REFERENCE REFERENCE 1. Automated Permit Tracking Software Systems: A Guide for Massachusetts Municipalities, June 2007. 2. Best Practices in Increasing Transparency in the Provincial Business Environment in Vietnam, Workshop Report, VCCI — The Asia Foundation, January 2011. 3. Butler, Stephen and Roland Igbinoba, Report on Processing of Construction Permits in Lagos State, Nigeria, IFC, October 2010. 4. Citizen’s Charters - A Handbook, a publication of the government of India, Ministry of Personnel, Public Grievances and Pensions, Department of Administrative Reforms and Public Grievances, New Delhi, India. 5. City of Atlanta, Georgia, ePlans: Application User Guide, August 2008. 6. City of Lexington, Kentucky, http://lexingtonky.gov/index.aspx?page=2627 7. City of Nashville, Tennessee, http://www.nashville.gov/codes/services.asp 8. City of New York Building Department, http://www.nyc.gov/html/dob/html/applications_and_permits 9. City of Phoenix, Arizona, http://phoenix.gov/development/index.html 10. City of Toronto Building Department, http://www.toronto.ca/building/index.htm 11. Customer Contact Charter, Sutton, London 2007/2008, www.sutton.gov.uk 12. Decision No.93/2007/QD-TTg dated June 22, 2007 by the Prime Minister promulgating regulations on implementation of OSS and inter-agency OSS mechanisms in local state administrative agencies. 13. Decision No.165/2009/QD-UBND dated November 27, 2009 by the Provincial People’s Committee of Bac Ninh promulgating regulations on the process and procedures for land access and development permits outside IZs in Bac Ninh Province. 14. Decision No.159/QD-UBND dated April 8, 2010 by the Provincial People’s Committee of Binh Dinh promulgating regulations on the process and procedures for land access and development permits outside IZs and EZs in Binh Dinh Province. 15. Decision No.23/2007/QD-UBND dated April 19, 2007 by the Provincial People’s Committee of Ba Ria-Vung Tau promulgating the process and procedures for implementing investment projects outside IZs, EPZs and hi-technology zones in Ba Rai-Vung Tau Province. 151 SIMPLIFICATION OF THE PROCESS AND PROCEDURES IN LAND ACCESS AND DEVELOPMENT PERMITS IN VIETNAM 16. Decision No.618/2007/QD-UBND dated February 13, 2007 by the Provincial People’s Committee of Quang Ninh promulgating provisional regulations on the implementation of a multi-agency OSS mechanism to handle administrative procedures for investors making production and trading projects in the province. 17. Decision No.10 /2009/QD-UBND dated April 13, 2009 by the Provincial People’s Committee of An Giang promulgating regulations on the implementation of the OSS mechanism for investment projects in An Giang Province. 18. Decision No.02/2010/QD-UBND dated January 20, 2010 by the Provincial People’s Committee of Hai Duong promulgating regulations on the implementation of the OSS mechanism in several procedures for investment projects outside IZs in Hai Duong Province. 19. Decision No.207/2010/QD-UBND dated March 8, 2010 by the Provincial People’s Committee of Ninh Thuan on the establishment of the Economic Development Office of the DPI of Ninh Thuan Province. 20. Decision No.290/2010/QD-UBND dated March 17, 2010 by the Provincial People’s Committee of Ninh Thuan promulgating regulations on the implementation of an inter-agency coordination mechanism to address administrative procedures with the EDO as the lead agency OSS. 21. Directive No.5809/UBND-XT dated December 31, 2010 by the Provincial People’s Committee of Thua Thien-Hue on the process and procedures of business access to land outside IZs, EZs and new urban areas in Thua Thien- Hue Province. 22. Diep Van Son. Listen to the Voice of Citizens, VietnamNet on line, http://tuanvietnam.vietnamnet.vn/ 23. Dong Nai Business Portal, www.dongnai.gov.vn 24. Forsyth County, Georgia, http://www.forsythco.com/department.asp?DeptID=169 25. From Business Idea to Reality: Stronger Reform is Needed, GTZ-CIEM, 2008. 26. Handbook on the Order and Procedures for the Realization of Investment Projects beyond Industrial Zones, Export Processing Zones in Ba Ria-Vung Tau Province under Decision No.23/2007/QD-UBND dated April 19, 2007. 27. Hong Kong Building Authority, http://www.bd.gov.hk/english/index_e.html 28. How Many Stops in a One-Stop Shop? A Review of Recent Developments in Business Registration, World Bank Group, December 2009. 152 TÀI LIệU THAM KHảO 29. Kusak, Jody Zall and Ray C. Rist, Building a performance-based monitoring and evaluation system: The challenges facing developing countries, Evaluation Journal of Australia, Vol.1, No. 2, December 2001. 30. Ngoc Lan. Effective Enforcement is Needed, The Saigon Economic Times, December 2, 2010, www.thesaigontimes.vn 31. Nguyen Tien Thanh. Thai Nguyen: a Inter-Agency One-stop Shop has been Established for Investment Projects, Website of the Administrative Reform, Ministry of Home Affairs, July 31, 2008, http://caicachhanhchinh.gov.vn 32. Ninh Thuan supports investment projects through a one-stop shop, the Investment online, March 25, 2011, www.baodautu.vn 33. NORC, Stakeholder Analysis and Communications Strategy for Simplification of Land Administration in Bangladesh, Bangladesh Investment Climate Fund — International Finance Corporation, March 2009. 34. N.Tran Tam, A Good Model, Thanh Nien Newspaper, Issue No.82 (5569), March 23, 2011. 35. Seven Steps to a Citizen’s Charter With Service Standards: Implementation Plan for Governmental Organizations, Netherlands Ministry of the Interior and Kingdom Relations, September 2008. 36. Simplification of the Business Start-Up Process and Procedures: A Handbook for Provinces, IFC and CIEM, June 2007. 37. Simplification of Business Regulations at the Sub-National Level, IFC, 2006. 38. Singapore Building and Construction Authority, http://www.bca.gov.sg/ 39. Sonoma County, California, http://www.sonoma-county.org/prmd/index.htm 40. The Economic Development Office of Ninh Thuan Province, www.edoninhthuan.gov.vn 41. Town of Ludlow, Massachusetts, http://www.ludlow.ma.us/building/index.htm 153 Download this toolkit at: www.ifc.org/mekong wwww.ciem.org.vn www.vcci.com.vn Publication Licence No.302/QDLK-LD Lao Dong Publishing House and Publication Plan Registration No.14-65/LD Publishing Department dated 26-5-2011 Design by : Golden Sky Co., Ltd. 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