According to the paper, the Vietnamese Government has always encouraged provincial authorities to become more accountable when carrying out reforms of business related administrative procedures.

The Government’s move to slash red tape by granting greater powers to local authorities has paid off, giving a boost to FDI and accelerating economic integration.

Since the opening up of the “Doi moi” or renewal process adopted two decades ago, the national economy has expanded continuously each year. Since 2001, GDP growth rose on a yearly basis, reaching 6.9, 7, 7.3 and 7.7 percent for 2001, 2002, 2003 and 2004, respectively. In 2005, the GDP grew by 8.4 percent. FDI into Vietnam was recorded at US$10 billion for 2006, more than tripling the figure of US$3.2 billion in 1987.