Standing Vice Chairman of Da Nang city’s People Committee Vo Duy Khuong at the interview granted to the press in Hanoi on April 16
NDO – Da Nang city always stands with enterprises and sees the business community as one of the key motivations for the city’s development, as demonstrated in the results of the Vietnam Provincial Competitiveness Index (PCI) 2014.
The remarks were made by Standing Vice Chairman of Da Nang city’s People Committee Vo Duy Khuong during an interview he granted to the press on the sidelines of the launching ceremony of the PCI 2014 held in Hanoi on April 16.
Q: How do you feel when Da Nang topped the PCI 2014 ranking?A: We were very happy when Da Nang once again ranked first on the PCI, but we also see the result as a pressure on Da Nang authorities. This is the second year in a row that Da Nang has taken the lead on the PCI ranking, after the interruption in 2012, falling to the 12th. The city was also at the top of the PCI ranking in 2010 and 2011. Authorities in Da Nang wish to share this accomplishment with the Da Nang business community. We also recognise the sound policy of the city that defines the business community as an important driving force for Da Nang’s development.
Q: What are the crucial factors leading to Da Nang’s high PCI scores?A: Da Nang has carried out a series of measures in the past years resulting in the high PCI scores including administrative reforms in all fields. We also put forth measures to increase the PCI scores of sub-indices requiring improvement. The city authorities effectively implemented the ‘Year of Enterprise 2014′ programme in support of enterprises, bringing in positive results. Amidst the economic recession and the bankruptcy of many businesses, other existing enterprises continued operations and many new start-up enterprises appeared, creating dynamic development in Da Nang’s business community.
Q: What are the achievements of the ‘Year of Enterprise 2014′ programme?A: We have made several significant achievements through the ‘Year of Enterprise 2014′ including the remarkable progress of the one-stop shop administrative reform. It can be said that the reforms in terms of time, procedures and the relations between authorities and enterprises has paid off.
Another notable factor was that the city awakened the spirit of enterprises, the spirit of doing business, and made all enterprises responsible for the city. It means that the city stands side by side with enterprises and enterprises take responsibility for the community and society.
In particular, Da Nang enterprises played an important role in contributing to the city’s budget, helping it to exceed the target by over 10%. Taxes from Da Nang’s business community accounted for approximately 76.5% of the total city’s domestic tax revenue.
Q: In 2013, two sub-indices ─ Proactivity and Business Support Services ─ saw the lowest scores. What have Da Nang authorities done to improve these sub-indices in 2014?A: Two sub-indices out of the PCI’s 10 sub-indices saw low scores in 2013 and Da Nang authorities organised a seminar to find out the reasons behind the low scores and put forth solutions to the problems. Da Nang authorities decided to choose 2014 as the ‘Year of Enterprise’ and brought out creative and comprehensive measures to support enterprises.
The city implemented the government’s policy on enterprises in a flexible manner to fit the local situation. For example, the government’s Decision No.58 on the establishment of a credit guarantee fund for small and medium-sized enterprises, stipulates that the fund will be raised through the contributions of state budget, commercial banks and enterprises. However, commercial banks refused to contribute and enterprises were suffering underfunding. Thus, the municipal People’s Council decided to use additional state funds to set up the fund. As a result, more than 60 enterprises benefited from the fund in 2014.
Regarding Business Support Services, Da Nang saw low scores in the past years and the city has tried to improve. We assigned local departments and sectors to connect and boost the supply and demand of enterprises in Da Nang and the central region to consume products and prevent stagnation.
In addition, the city assisted enterprises in accessing related information through the publicity of policies and incentives in the media in a bid to create equal opportunities for all enterprises. The city also gave credit support to more than 60 enterprises through a development investment fund and credit guarantee fund. Despite only a small number of enterprises receiving the support, the move increased the trust of the business community in the authorities and government. We think that it is through these measures that we have improved these sub-indices in 2014.
Thank you very much!
| Edmund Malesky, Ph.D., Associate Professor of Political Economy, Duke University, who is also the PCI lead researcher, praised Da Nang as a special place for foreign direct investment enterprises in his speech at the launching ceremony of the PCI. According to Edmund Malesky, Da Nang is the only province where the predictability of local implementation is not lower than the predictability of central laws. He also pointed out other strong points of Da Nang: significantly higher transparency and access to documentation; the only province with investors seeing no decline in infrastructure quality between 2013 and 2014, and significantly lower wait times for business registration among others. |
| Chairman of Da Nang city’s People Committee Huynh Duc Tho said at the launching ceremony that Da Nang achieved the highest scores in the PCI 2014 because it has constantly changed and improved itself through reforms. The city has focused on administrative reform and the simplification and transparency of procedures, particularly procedures related to the reception and handling of business files. He added that the city will continue to work with enterprises to maintain the PCI results achieved in 2014 along with creating optimal conditions for both domestic and foreign enterprises. |
Da Nang tops PCI rating thanks to favourable conditions for enterprises Related image(s)
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