Provinces switched prime ranks in the PCI's top ten of last year
Provinces switched prime ranks in the PCI's top ten of last year
While cities and provinces like Haiphong, Vinh Phuc, Bac Ninh, Thua Thien-Hue, and Ba Ria-Vung Tau climbed into the top ten of the Provincial Competitiveness Index 2021 (PCI) thanks to many improvements, Long An, Vinh Long, and Ben Tre have been kicked off the list.
On April 27, the Vietnam Chamber of Commerce and Industry (VCCI) launched the 2021 Provincial Competitiveness Index Report in a hybrid launch ceremony. The PCI, the result of a long-standing collaborative effort between VCCI and the US Agency for International Development, is designed to assess provincial economic governance, the ease of doing business, and administrative reform efforts by provincial governments in Vietnam in order to boost private sector development.
In the PCI 2021 rankings, Quang Ninh, Haiphong, Dong Thap, Danang, and Vinh Phuc secured the top five positions. These provinces achieved very positive results in economic development and COVID-19 response policies, as perceived by firms, followed by Binh Duong, Bac Ninh, Thua Thien-Hue, Ba Ria-Vung Tau, and Hanoi.
Compared to 2020, Long An, Vinh Long, and Ben Tre lost their ranks in the top ten, replaced by Vinh Phuc, Thua Thien-Hue, and Ba Ria-Vung Tau. Meanwhile, Quang Ninh remained at the leading position for the fifth consecutive year with 73.02 points.
The 2021 PCI report was developed from responses by 11,312 businesses, including 10,127 domestic private ones operating in 63 cities and provinces and 1,185 foreign-invested enterprises operating in 22 cities and provinces in Vietnam.
The 2021 PCI domestic survey showed that provincial governments maintained improvements. Administrative procedure reforms attained positive results, with increased effect of enforcement across provinces. Anti-corruption efforts are paying off, as firms reported a reduced burden of informal charges.
However, provincial governments are urged to focus more on accelerating digitalised processing of administrative procedures and reducing constraints in the tax, land, social insurance, environmental, fire safety, and market regulation procedures.
Registration of conditional business lines is another area of policy concern, as the compliance burden remains substantial. At the same time, provincial authorities should make further efforts to effectively implement business support programmes as well as programmes supporting domestic firms in international economic integration.
“The PCI 2021 report, its seventeenth iteration since 2005, is an indication of 17 years of continuous efforts to convey objective and candid assessments to promote actions to enhance the business environment at the provincial level,” stated Pham Tan Cong, chairman of the VCCI.
“The US government is proud to have partnered with VCCI for the last 17 years to support the PCI’s emergence as a premier tool for those seeking to invest in Vietnam. This tool has spurred improvements in local economic governance that have unlocked private sector-driven growth,” said US Ambassador to Vietnam Marc Knapper.
