Long An’s PCI success story in driving long-term reform

Long An’s PCI success story in driving long-term reform

Long An province has become a national model of reform by putting businesses first, and fostering a transparent and dynamic investment climate over the years.

After two decades of expediting the Provincial Competitiveness Index (PCI) in Vietnam, Long An province – part of Vietnam’s Mekong Delta region – has made remarkable strides, establishing itself as one of the country’s most persistent and decisive reformers.

According to the 2024 PCI rankings released by Vietnam Chamber of Commerce and Industry (VCCI) on May 6, Long An secured second place among the most reform-oriented localities over 20 years of PCI implementation nationwide.

This achievement reflects the province’s consistent commitment to innovation and its strong drive to improve the local business environment through proactive governance.

Chairman of Long An People’s Committee Nguyen Van Ut (right) receives a certificate recognising Long An as the second most reform-driven locality in Vietnam over 20 years of PCI implementation

Long An has emerged as a magnet for major domestic and international investors. Its favourable geographic location as the gateway to the Mekong Delta and adjacent to Ho Chi Minh City, Vietnam’s largest economic hub, combined with a transparent and attractive investment climate, makes the province a premier destination for investment.

This transformation is not merely the result of strategic improvements to the business environment. It also represents a shift in mindset across the provincial leadership, embracing modern governance focused on enterprise-centred service and support.

Notably, the province asserted its place among localities in the 2024 PCI ranking with the highest quality of economic governance.

With a score of 72.64, up 1.7 points from 2023, Long An ranked third nationwide, demonstrating the province’s comprehensive efforts to enhance the local investment climate and proving its growing appeal to both domestic and foreign investors.

Since 2023, the province has introduced the Department and District Competitiveness Index (DDCI), modelled after the national PCI framework developed by VCCI. The index assesses the economic governance capacity of provincial departments, agencies, and district-level People’s Committees and serves as a critical tool to improve the quality of economic and social management across the province.

The DDCI also reflects the province’s broader objective of fostering cooperation and unity among local agencies in driving economic reform. By aligning their efforts, these institutions help create a more transparent, dynamic, and investor-friendly business environment.

Survey results indicate a growing sense of trust among businesses and production facilities regarding the province’s constantly-improved investment climate.

Many respondents noted clear progress in the management and operations of provincial departments and local authorities. The positive feedback provides a foundation for targeted policy adjustments aimed at making Long An’s business environment more open and transparent, while bolstering investor confidence and economic growth.

Strategic promotion

In tandem with the DDCI, Long An has made efforts to constantly boost domestic and international investment.

The province has followed a selective investment approach, prioritising quality, efficiency, technology, and environmental protection. It targets major investors with strong financial capacity and advanced technology, particularly in sectors aligned with the province’s strengths.

Long An’s leadership has taken an active role in reaching out to large domestic and international corporations. Provincial leaders have travelled to diverse countries to meet investors directly and invite them to explore opportunities in the province. This hands-on approach has been crucial in shaping Long An’s image as a highly attractive investment destination.

In March, Long An’s investment promotion delegation successfully organised the Long An-Japan Trade and Investment Promotion Programme at the Embassy of Vietnam in Japan.

One of the highlights of this programme was the signing ceremony of three important cooperation agreements, opening up strategic cooperation opportunities between Long An and Japanese partners.

These investment promotion activities have paid off. Numerous large corporations from within Vietnam and abroad have come to Long An to explore business and investment prospects. Many reputable investors have already landed projects in the province.

Thanks to innovative and proactive approaches, Long An has carved a spot among the top 10 most attractive destinations for major businesses in 2024.

As of the end of the first quarter of 2025, Long An enticed nearly 2,300 domestic investing projects, with total registered capital exceeding $20.4 billion. Additionally, the province was home to just over 1,400 foreign-led projects with a total registered capital reaching $12.78 billion. Statistics indicate that around 70 per cent of all foreign-invested projects in the delta region are located in Long An.

Furthermore, Long An currently boasts more than 20,150 registered enterprises with a combined registered capital touching $16.03 billion, taking the lead in the delta region in both the number of businesses and total registered capital.

The province organised a trade and investment promotion event in Japan in March

Partnering for growth

The province has directed its departments and localities to intensify administrative reforms, particularly in investment procedures, business registration, land use, construction, and environmental management. Comprehensive digital transformation has also been promoted, contributing to improved quality, transparency, and accessibility of online public services for businesses and investors.

In 2024, Long An’s Transparency Index reached 6.63 points, an increase of 0.64 points compared to 2023, one of the notable highlights reflecting the province’s strong commitment to supporting and standing alongside businesses.

A key aspect of Long An’s business-friendly approach lies in its consistent and direct engagement with the business community. Provincial leaders frequently meet with businesses through structured dialogue sessions, listening to their feedback, understanding concerns, and promptly addressing obstacles. In Q1 of 2025 alone, Long An successfully organised three dialogue conferences with businesses in diverse areas.

With synchronised efforts to improve PCI rankings and practical support measures for businesses, the province’s investment environment has become increasingly open, transparent, and trustworthy, building a solid confidence among investors.

Chairman of Long An People’s Committee Nguyen Van Ut, said the locality will continue to leverage its competitive advantages, strengthen regional connectivity, upgrade infrastructure, pursue deeper administrative reforms, and innovate investment promotion strategies.

“We will proactively engage with major investors, provide timely and transparent information, and digitise provincial data. These are our strategic breakthroughs to significantly improve the investment and business environment, bringing Long An closer to investors both at home and abroad,” Ut said.

Ut delivered the statement during a regular provincial management meeting last month, where he emphasised key strategic solutions aimed at significantly enhancing the province’s investment and business environment.

In this spirit, Long An People’s Committee has tasked the Department of Finance with identifying and eliminating regulatory barriers that hinder business and investment activities.

The province also monitors progress of key projects and addresses any issues arising during implementation. Provincial departments, agencies, and People’s Committees at grassroots level are also stepping up their efforts to execute action plans aimed at improving the business environment and raising Long An’s PCI score in 2025.

VIR