Abstract Hanoi and Ho Chi Minh City each launched Web development projects for business service agencies in 2000. The two websites (Hanoi Ministry of Planning and Investment and Ho Chi Minh Department of Planning & Investment) are designed to serve as the first point of contact for potential investors, especially foreign investors. The sites are now interactive, content rich, and have the potential to set standards for related agencies elsewhere in the country. The implementation challeges in these two cities varied, but were mostly of a non-technical nature, including an over-reliance on outside consultants. Application Context In Hanoi, the Ministry of Planning and Investment (MPI) creates commercial laws and regulations, approves investments for projects that meet a certain monetary value threshold, and provides general information on the economic and business conditions in the country. The Ho Chi Minh Department of Planning and Investment, adheres to investment laws established at the national level and issues investment licenses for projects deemed too small for MPI to process. Both agencies issue investment licenses and government documents certifying that an investment project is in line with national development goals. An application for an investment license typically must be accompanied by supporting documentation (e.g., feasibility study, corporate background, and other related documents). It is submitted either at the national or the regional level, depending on the value of the proposed project. Companies can proceed with other government formalities (business registration, labor certifications, and municipal level agency compliance) only after receiving the license. Commonplace delays in license issuance have placed an undue burden on the applicant. This can be particularly costly if the applicant is conducting a preliminary assessment of a potential investment project. A New Approach Investment license applications now have been Web-enabled in both cities. Companies can submit their applications via the agency web site, although the paper filing option still remains. The information submitted in the application enters a database log file, which generates a text copy that is transferred via email to a designated representative. Where required, the applicant may have to provide supporting documentation, but this is now on a case-by-case basis. In Ho Chi Minh, the agency typically processes the applications in less than a day, and most applicants can pick up their license the next business day. The Hanoi Ministry of Planning and Investment website is designed to provide all information critical to starting a business in Vietnam. In addition to all laws and regulations -- previously available through a limited-hour distribution center -- the site provides objective, factual information on registering, setting up, and operating a business in Vietnam. At the time of this writing, there were approximately 500 pages of information in English and Vietnamese available on the sites in Hanoi and in Ho Chi Minh City. The site can be managed by non-technical experts through a Web-based form that allows the administrator to edit, add or delete data, and send mass e-mail to those that have registered on the web site. Technical assistance was provided to both agencies through a business advisory program funded by a Japanese-government grant and implemented by the Investment Marketing Services Department of the Multilateral Investment Guarantee Agency (MIGA). The Web development team responded to the needs and technology readiness of both agencies. Most of the technical assistance was focused on Hanoi, where an international development team customized a website template designed for investment promotion agencies for Hanoi (the template was also used in Laos and Cambodia). Local and foreign contractors gathered and edited content, designed the user interface and trained both the staff and a local vendor in managing and updating the site. In Hanoi, MIGA (part of the World Bank Group) provided strategic advisory services to the agency, mainly on site architecture and building partnerships with local content providers such as law and accounting firms. The technology used for the web development project factored in the on-the-ground reality in Vietnam. Microsoft technologies were selected because, while not the most advanced, Microsoft certified developers are widely availabile in Vietnam. The ease of finding local service and support is critical if the Internet presence is to remain sustainable. Implementation Challenges The project was implemented during February-August 2001, with several time lags owing to deliberations by the government agencies. Rather than create an agency-specific product, the decision was made to go with a pre-packaged website template that could be customized on site, especially as a Japanese grant covered the costs (see below) and a common template could facilitate similar projects elsewhere. The team ran into three main challenges, most of these in Hanoi. First, there initially was a low level of buy-in at senior level. Second, there was a reluctance to share infomation, and third, an over-reliance on outside consultants. Low Level of Management Buy-In at First. At the start of the project, the Web presence was viewed (tacitly) as an information technology project (the sole domain of the information services department) as opposed to an enabler of core business services. Although the client counterpart was a deputy-director, three levels down from the Minister, in reality the reporting was handed to line staff who had little understanding of information technology. This created inertia during the initial stages of the project. Coordinating the project across borders was already a challenge owing to the geographically dispersed team structure. What made this harder was the limited contact between the development team and the client agency in Hanoi. This was due to several factors --- counterparts did not regularly access their e-mail, phone transmission quality was poor, and the time zone difference allowed only a limited window for phone conferences. In Ho Chih Minh, communications were less of a problem, mainly because the counterpart team was much younger and more e-mail savvy. Reluctance to Share Information. Although the private sector was willing to provide detailed content in exchange for recognition on the website, some in government viewed this as hijacking by external parties. After much discussion, the agency agreed to a subtle recognition in exchange for a large amount of information from the private sector. Over-Reliance on Outside Consultants. The over-reliance on the development team by the client counterpart in Hanoi proved to be a problem. Despite agreement that the counterpart team would be responsive, the reality was quite different. Queries by the project team on content verification, business processes, and information technology requirements were largely ignored, perhaps owing to the lack of understanding by the counterpart team and, possibly, the absence of connectivity (only one member of the counterpart team had email access, which was from his personal Internet account). These challenges continued well into the project implementation phase until a visual prototype was rolled out. Management then quickly recognized that the site could be a compelling face for the agency with the international investment community, and put full support behind the implementation. Benefits and Costs The total project cost was about $200,000, half of which was spent on hardware and software for the agency, and the remainder on the Web development project. This cost was funded in full by a Japanese government grant. The site has been able to reduce turn-around time in processing by the agency and, most importantly, the search cost by prospective investors who traditionally pay professional services companies several thousand dollars for a simple registration process. Key Lessons Although the benefits of this e-government application could be extended to related agencies in Vietnam, thus justifying the high cost of development, this has yet to be done. At the time of writing, however, less than six months have passed since the public launch of the site. The project helped to develop an Internet presence, but underestimated the degree of buy-in required by management to ensure the timely success of the project. More resources should be devoted to market the site through a media campaign, either as an extension of the project or a separate phase. Case study authors: Mihir Desai (project manager) and Numa de Magalhaes (technical advisor). The opinions expressed are those of the authors and do not necessarily reflect the position of the agencies they represent.
Date submitted: June 4, 2001
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