Hanoi drops 15 spots on competitiveness rankings

Hanoi drops 15 spots on competitiveness rankings

The Mekong Delta province of Dong Thap ranks first in the Provincial Competitiveness Index (PCI) 2012 while Hanoi losses 15 grades, falling to its lowest position since the index was published.

The PCI 2012 has unexpected disturbances. From last year's 4th place, Dong Thap suddenly climbs to the top this year. Last year’s newly- emerging champion Lao Cai falls to the third position this year.

Hanoi, from the 36th position in 2011, drops to the 52nd. This is the lowest position of the capital city since the Vietnam Chamber of Commerce and Industry (VCCI) released the PCI for the first time in 2005. Of the nine categories, Hanoi gets low points for legal framework and dynamics, with less than three points on a scale of 10. Even in the field of having access to land, Hanoi gains the lowest point in the country.

Meanwhile, Ho Chi Minh City climbs from 20th in 2011 to 13th this year. The city’s improved categories are the dynamics and time cost.

In general, the PCI 2012 in most provinces significantly reduce compared to the rankings last year. For the first time since the PCI was released, no province reaches the threshold of 65 points, for the province with the very good management.

In addition, after the survey at 8,053 enterprises, the VCCI says that operating efficiency of Vietnamese businesses unprecedentedly declined. Both the scale of investment and labor seriously reduced. Less than 60% of them reported profit while 21% reported losses.

The group of foreign investors (including 1,540 enterprises) was less optimistic about business performance. Only 33% of respondents said they would expand their business in the next two years.

vietnamnet