What do Vietnamese experts think about Australia’s development program? To find out, the Lab spoke to 40+ top development and foreign policy experts. Here’s what we found.
A short guide to the Pulse Check x Vietnam for policymakers
There are a number of big disruptions underway, and these will drastically affect development in every country.
You have 100 points. Allocate your points according to which of the below disruptions are most critical to address in your country.
Things like: the impact on livelihoods, infrastructure and people’s quality of life as the climate changes, the global push to reach net zero and beyond, biodiversity health and resource usage, disaster resilience
Things like: competing powers and their impact on things like trade and economic growth.
Things like: the rapidly growing digital and data economy, and the rise of artificial intelligence and advanced autonomous systems.
Things like: shifting demographics across age, education and healthcare, and rising inequality, gender equality, disability inclusion.
Things like: rapidly changing markets, trade conditions, stability and resilience to shocks, changing job opportunities and emerging industries.
Things like: shifting international norms and state structures, effective functions of the state, and disruptions to the international rules based order.
Things like: global stability and instability, internal conflict, humanitarian crises, external interference, maritime disputes.
“Climate change and environmental shifts significantly disrupt Vietnam's development, affecting particularly farmers' livelihoods, infrastructure, and quality of life.”
Pulse Check participants named climate change as the most critical disruption facing Vietnam. They cited rising sea levels, environmental degradation, extreme weather, and natural disasters as the key factors challenging sustainable development and economic growth, especially in the Mekong Delta region.
Many participants stressed that the long-term economic growth of Vietnam went hand-in-hand with environmental protection and a rapid transition to clean energy. While some were optimistic that their government and development partners were sufficiently prioritising these issues, others wanted to see further evidence that they top the agenda.
Participants discussed the rapid technological advancements that are driving growth in many sectors, contributing to the emergence of a fast-growing middle class, reshaping markets, business practices, education and health services, and employment distribution. However, participants also spoke to concerns that these trends could enhance economic inequalities and creates disparities in education, quality employment, and access to social services between urban and rural areas, as well as between marginalised groups and the rest of the population.
Participants considered changes to state structures and norms as a lower relative disruption to development. While broadly participants saw Vietnam maintaining a stable political environment, domestic political tensions still raised uncertainty. Concerns persisted about governance performance, including regulatory quality, rule of law, corruption, and narrowing civic space.
We know that to achieve social and economic development, an effective and accountable state is critical - and this is something that Australia is committed to working with partners on.
You have 100 points. Allocate your points according to where you would focus efforts to enhance social and economic development in your country, using the State Effectiveness Framework.
For example, commercial policy, private sector development, intervention by the state when the market experiences failure or crisis.
For example, a balanced security environment, when police, military and other security institutions are bound by the law and guidelines.
For example, public utilities - including water, electricity and roads.
For example, strong adherence to both formal and informal rules, high levels of predictability and stability of the enforcement of rules, and governance arrangements.
For example, investment in the citizens of a state through education and public health.
For example, strong and transparent forms of public financial management, effective public borrowing, and fiscal management.
For example, addressing barriers to equal opportunities through citizens rights which cut across gender, race, ethnicity, religion, class and location.
For example, state assets (including natural resources [water, land, the environment, extractives] and other intangible benefits [licenses and permits]).
For example, preparedness for disasters, state resiliency against crises such as drought, famine, and catastrophic weather.
For example, public sector management, uniform rules and guidelines, strong reforms to prevent corruption.
The prioritisation of infrastructure stemmed from the commonly held view that, when done well, it can facilitate greater economic productivity, enhance living standards, and promote sustainability. The top three priorities were market-enabling infrastructure, climate-resilient infrastructure, and infrastructure that can reduce inequality, especially between those living in rural and urban parts of the country.
Some participants discussed infrastructure development and asset management as two state functions that can overlap. They stressed that when it comes to state assets, more needs to be done to prevent their misuse.
By a very close margin, Pulse Check participants ranked human capital investment as the next most critical function for their state to deliver. For these participants, this meant improving the quality of educational and health services, upgrading infrastructure to ensure accessibility in rural areas and for vulnerable groups, and diversifying people’s skills and jobs.
Pulse Check participants see market engagement as a crucial function for their state to deliver. Many wanted to see a greater role for the private sector within Vietnam’s economy. Some explicitly highlighted the inherent contradiction they see between Vietnam’s free market economy and a socialist state, and the challenge this presents to policy reform.
Ultimately, most participants want to see fairer market engagement and a more conducive business environment in Vietnam, which they see as critical to more sustainable economic growth. The issues most important to these participants included: increased support for small-scale producers, policies that generate innovation and support start-ups, and work to address norms and systemic barriers that prevent marginalised communities from thriving within the economy.
Despite not being top-ranked, participants highlighted just how crucial it is to have the state govern in a way that is transparent and accountable. They stressed that effective governance is the pathway to sustained social and economic development.
Many participants raised concerns about the prevalence of grand corruption in Vietnam, with some seeing strengthened rule of law as the pathway to tackling this, and others favouring more robust public financial management systems.
While other functions of an effective state such as citizen engagement and public financial management ranked far lower, many experts referred to the importance of these issues and how they see them as being underpinned by effective governance. To many, a litmus test for the state delivering more effective governance would include greater cooperation between government and non-government actors in policymaking.
Australia's new development policy wants to foster connection between your country and ours. How is this best done within development?
You have 100 points. Allocate your points according to where you think efforts are best placed to bring our countries together through development cooperation.
Support from Australia to back your country's aspirations on things like gender equality, health assistance, rural development and education.
Support from Australia to back your country's aspirations on things like trade, market growth, regulatory reform, small-to-medium enterprise (SME) development and development finance.
Support from Australia to back your country's aspirations on things like peace and security, effective governance, food security, digital and cyber security, law and justice.
Support from Australia to back your country's aspirations on things like remittances, labour mobility, job creation, social and economic policy reform.
Support from Australia to back your country's aspirations on things like scholarships, policy dialogue, cultural exchange and institutional partnerships.
Support from Australia to back your country's aspirations on things like climate adaptation and mitigation, global health crises, transnational crime, joint cooperation in regional and multilateral fora, unregulated migration flows and major demographic changes.
Participants ranked strengthening investment links between Australia and Vietnam as a top priority for bilateral cooperation in pursuit of development outcomes. Participants wanted to see investment in trade, market expansion, regulatory reforms, and SME development to grow the economy and create jobs. Participants noted that creating robust investment connections with Australia could facilitate technology transfer and enhance market access, thereby contributing to the overall economic development of Vietnam.
Further, some suggested that Australia's expertise in agriculture technology and innovation could support Vietnam to further diversify its markets, enhance productivity, and promote more sustainable agricultural practices.
Participants ranked connecting to foster stronger social capital as the next highest priority to enhance Vietnam’s cooperation with Australia. Many participants suggested connecting on shared values like gender equality, disability and social inclusion were most important, seeing the opportunity to work alongside Australia and other development partners to help build a more equitable and resilient society.
While some participants believe that Australia's prolonged support in these areas has played a role in enhancing Vietnam's social capital, others suggested that Australia’s development program should improve its efforts on disability inclusion and rural development.
“These are issues that can make an impact at both the community and policy levels. Investing in these issues also creates people-to-people relations, contributing to cooperation in other fields.”
Pulse Check participants see the opportunity for further knowledge sharing between Australia and Vietnam through things like scholarships, policy dialogues, cultural exchanges, and institutional partnerships. According to these participants, some of the areas of greatest opportunity are in effective governance, cyber security, regulatory reform, SME development, urban and rural development, and climate change.
Australia works with your country through development cooperation in a variety of ways. What would you like to see here?
Australia's bilateral ODA allocation to the Vietnam for FY 2023-2024 is $63.2 million. You have 100 points. How would you re-allocate Australia's bilateral funding to Vietnam across these categories using your 100 points?
Including policy and research to support economic growth, emerging industries and job markets, banking and financial services.
Including transport and storage, larger water, communications.
Including agriculture, fisheries and forestry, industry and mining and mineral resources.
Including policy and enabling markets.
Including governance programming, policy reforms, civil society strengthening, social protection measure and infrastructure.
Including support for feminist organisations and movements, support for disability organisations and services.
Including basic, secondary and higher education and scholarships.
Including basic health, infrastructure and basic water and sanitation.
Including climate mitigation and adaptation, energy infrastructure, environmental protection and management.
Including emergency response, disaster prevention and preparedness .
Participants ranked education as the number one priority for Australian effort and investment in Vietnam. They see Australia as a partner with a positive reputation, in part built on its efforts in scholarships, vocational training and skill building, and institutional strengthening. Many re-emphasised that investing in human capital is a priority for Vietnam, and that Australia can make an important contribution by investing in education and leveraging its development assistance in this sector.
Pulse Check participants stressed that while Vietnam has made significant gains in education, there remains room for improvement, especially when it comes to increasing access for poor, rurally based, and ethnic minority communities. Many want to see Australian development efforts increased here.
Participants highlighted Australia's strong expertise in climate adaptation and agriculture, expressing desire for increased Australian assistance in these sectors. They underscore the pressing threat that climate change poses to Vietnam, emphasizing the need for dedicated resources to address climate adaptation.
Participants believe that Australia's specialized knowledge and resources in climate adaptation can play a pivotal role in supporting Vietnam's strategies to mitigate and adapt to the impacts of climate change. Additionally, they see opportunities for collaboration in agricultural practices that could bolster Vietnam's resilience and sustainability in the face of environmental challenges.
Agriculture is acritical sector in Vietnam, providing essential livelihoods for many rural communities. Funding should be directed toward enhancing agricultural practices, increasing productivity, and promoting sustainable farming methods. Such investments can help improve food security, bolster economic stability, and ensure long-term environmental sustainability in rural areas.
Alongside what is included in Australia's development cooperation with your country, we're interested in your views on how Australia delivers assistance.
You have 100 points. Allocate your points according to where you think Australia should focus to become a great development partner to your country.
Working in selective sectors where Australia can best assist your country, and doing it well. Perhaps operating in a less visible way, and much more impact-oriented.
Working at the forefront of development challenges and working with partners to get ahead of big, new challenges to development. Developing specific capabilities in response to development disruptions decades ahead.
Working with partners to leverage Australian expertise, and knowledge, and working with your country's knowledge ecosystem to solve the most difficult development challenges.
Connected to your communities, not just your Government. Australia as a whole-of-nation partner that connects across different levels: for example universities, businesses, and organisations. Squarely focused on delivering development outcomes for people and communities.
Working to back Australia's development partner's aspirations through things like ASEAN, multilateral arenas, and through bilateral arrangements.
When asked to choose, participants most wanted to see Australia partner with Vietnam on the basis of technical expertise sharing. They want Australia to leverage its expertise to cooperate with Vietnam on issues like agricultural innovation, the clean energy transition, and digital transformation.
Participants stressed that the selection of areas for expertise sharing should be based on Vietnam’s most pressing needs, niche Australian expertise and comparative advantage, and mutual interests between the two countries.
"Try to find niches. Do not try to compete with the likes of US Agency for International Development and the World Bank because technically and financially Australia is far from them.”
Participants emphasised the importance of maintaining and deepening partnerships with development stakeholders across all societal levels, including communities, institutions, and non-state actors, to boost the effectiveness of Australia’s development initiatives. Some experts saw this as the quickest route for Australia to build a better understanding of local contexts and to empower local development actors, rather than giving primacy to its own knowledge and practices. Others saw this as a powerful way for Australia to leverage its position as a development partner to create more convening space between the state, the private sector, and civil society to help promote open civic space and stronger civic engagement in Vietnam.
“Australia should engage with people at all levels of society… not just the government. These stakeholders possess valuable insights into the current and potential challenges facing their regions.”
