Nordic countries share valuable lessons on improving governance efficiency

The Ho Chi Minh National Academy of Politics, in collaboration with the embassies of four Nordic countries — Sweden, Denmark, Finland, and Norway — held the 8th annual Nordic International Scientific Conference in Hanoi on March 18.

This year’s event focused on “Advancing Leadership in Public Administration: Innovation, Digitalisation, and Effective Governance – Nordic Experiences and Policy Implications for Vietnam”.

At the conference,  representatives from the Nordic nations shared their expertise in leveraging digital transformation for public governance to better serve businesses and citizens while fostering rapid, sustainable economic and social development.

Prime examples of public governance in the digital age

As Vietnam aspires to achieve high-income status by 2045, administrative reform, innovation, and digital transformation in public governance are seen as essential pillars for progress.

Associate Professor Duong Trung Y, Vice president of the Ho Chi Minh National Academy of Politics, highlighted experiences from Nordic countries, which are global pioneers in transparency, efficiency, and sustainability in public governance.

“Nordic nations' leadership and governance models, which emphasize innovation, digital transformation, and efficiency for sustainable societal development, offer valuable lessons for Vietnam. This is especially relevant as Vietnam implements Resolution 57-NQ/TW of the Politburo to drive breakthrough national development in this new era,” he stated.

Nordic countries have long been recognized for highly adaptive and effective public governance models that foster strong societal trust.

For example, Finland has gained global recognition for its decentralized governance approach, which encourages innovation and prioritizes citizen-centric services. This model has streamlined interactions between the government and the public.

“By prioritizing decentralization and fostering a culture of innovation, Finland has built a flexible and efficient public administration system that delivers tangible benefits to its citizens,” said H.E. Keijo Norvanto, Finland’s Ambassador to Vietnam.

Similarly, Denmark has led the global digital governance landscape for over 25 years, pioneering initiatives such as automated tax declarations and digitized administrative processes. Denmark has completely eliminated paper-based communication between the government and citizens.

“In a rapidly changing world, effective governance must be built on adaptability, innovation, and trust,” emphasized H.E. Nicolai Prytz, Denmark’s Ambassador to Vietnam.

As for Vietnam, according to Mr. Do Tien Thinh, Deputy Director of the National Innovation Center (NIC), several technologies have already been applied in Vietnam’s public administration. An increasing number of officials and civil servants are also integrating artificial intelligence (AI) tools into their daily work, demonstrating the strong momentum of digital transformation in the public sector.

Accordingly, Mr. Thinh stated that thanks to the government’s effort  in digital transformation, many services for Vietnamese citizens and businesses, especially its private economic sector, can now be conducted electronically and without delay.

He stressed that the implementation of public services in the digital environment has helped the government save millions of paper-based documents, significantly reducing resource waste, budget expenditures, and labor efforts.

A model to improve governance efficiency 

Beyond digital transformation, experts stressed that Vietnam must adopt a suitable governance model to optimize public service efficiency and minimize resource wastage.

Associate professor Le Van Chien noted that Vietnam’s administrative system currently consists of 63 centrally-run cities and provinces, over 700 districts, and 10,035 communes, undergoing adjustments every 20 years. Historically, Vietnam’s governance was highly centralized, with most decisions controlled by the central government. However, decentralization has gradually increased since the Doi Moi period.

“The current administrative structure remains cumbersome and does not effectively support economic growth. Streamlining governance will be crucial for Vietnam’s goal of becoming a developed country by 2045”, Associate professor Chien stated.

While Vietnam is committed to a comprehensive government restructuring, he noted that clear implementation steps have yet to be outlined as the country is following a ‘build-as-you-go’ approach.

Amid Vietnam’s ongoing administrative reforms, Nordic representatives shared the advantages of decentralized governance models combined with digital transformation.

According to Mr. Anders Windinge, Chief Consultant for KL Local Government Denmark, the country has enshrined decentralization of the government in its constitution since 1849. Over 150 years, this model has undergone multiple reforms while maintaining high effectiveness.

“Decentralization brings the government closer to the people. Citizens have a single local contact point for government services, ensuring that no one is left behind. Policy implementation also improves when decisions are made at the local level” Mr. Windinge emphasized.

Under this system, policy execution is delegated to local governments, making them responsible for effective implementation while granting them the political authority to develop localized solutions. Moreover, each function transferred from the central to local levels comes with a corresponding budget, ensuring sufficient resources for efficient operations.

“Statistics show that Denmark has the world’s highest degree of government decentralization, and based on our experience, this has proven to be the right approach”, Mr. Windinge affirmed.

Sweden, another Nordic leader in governance, has developed a highly inclusive and innovation-driven public administration system that integrates digital transformation and cross-sector collaboration.

“Effective governance must be inclusive, innovative, and citizen-centric. In today’s era, decentralization must go hand-in-hand with digital transformation to maximize efficiency,” said H.E. Johan Ndisi, Sweden’s Ambassador to Vietnam. Sweden has already automated 99.7 per cent of its public administration processes.

"Governance is most effective when it is inclusive, innovative, and citizen-focused", explained the Ambassador Johan Ndisi.

"Our decentralized model, coupled with a commitment to digital transformation, gender equality, and work-life balance, illustrates how leadership grounded in collaboration and adaptability can drive profound change. Sharing these lessons empowers us all in our collective efforts to enhance public administration on a global scale," he added.

Though highlighting the country’s achievement in digitalization of its public sector, Mr. Windinge also noted that this 25-year journey was not without challenges, particularly in catering to both elderly and younger demographics.

“In digital transformation, cybersecurity is crucial, as is simplifying bureaucratic processes. By 2025, Denmark will be almost fully digitalized, with a strong focus on secure digitalization and legal frameworks to support this evolution,” he stated.

Denmark's and other Nordic countries's experience underscores that digital transformation and decentralization not only enhance public service efficiency but also strengthen institutional trust and citizen engagement. Digital tools facilitate better data sharing, informed decision-making, and effective solutions to societal challenges, ensuring long-term sustainable development.