Hanoi (VNA) – Eliminating the State monopoly andengaging the private sector in public service provision is an urgent need,according to Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) VuTien Loc.

At a workshop held by USAID and the VCCI inHanoi on May 15, he said economic reforms over the last three decades show theState allowing the private sector to supply goods and services for society hasgenerated benefits.

In the retail sector, State-run departmentstores have been replaced by markets, supermarkets, stores and shopping malls.While there were only State-run transport businesses in the past, thousands oftaxi, bus, tourist car and truck service companies have been set up.

Private firms’ growing participation in alleconomic sectors, even those originally reserved for State-owned enterpriseslike airports, seaports and transport infrastructure, aviation, electricity, healthcare,education and notarisation, has shown the sector’s key role in publicinvestment, Loc noted.

However, he said, there remain several publicservices solely provided by State agencies, which could lead to a lack of transparency.

The most important thing is the State has towithdraw from unnecessary public services, streamline its apparatus and focuson institution building, the VCCI chairman said, adding that institutionalquality is decisive to national competitiveness.

Doan Tien Giang, a public-private partnershipresearcher at USAID, said the private sector’s participation in public serviceprovision, or outsourcing public services to private parties, will bringpractical benefits like saving costs, promoting accountability, improvingmanagement capacity, using capital and equipment efficiently and enhancingservice quality.

He also pointed out risks in the privatesector’s supply of public services such as lower security, opaque bidding andprocedures to choose contractors, and job losses.

In a recent survey conducted by the VCCI and theWorld Bank, most respondents said private businesses play the main role insupplying goods and services. However, some also voiced their concern aboutrisks posed by the private sector’s involvement such as price hikes, loss ofquality control, frauds and monopolies.

To choose fields to be outsourced to the privatesector, Giang recommended several factors be considered, including thelongevity of services, regulation and policy flaws, risks, ability to assessservice quality and the possibility of changing contracts.

VCCI Chairman Loc called on State agencies to monitorthe private sector’s engagement in public services to help improve publicservice efficiency.-VNA