The Vietnam Chamber of Commerce and Industry (VCCI) recently released the Provincial Competitiveness Index (PCI) 2013 in Hanoi, which saw huge changes in PCI rankings of Vietnamese provinces and cities in the past year. Danang City returned to the top position in the 2013 ranking.
PCI is a motivation for provinces and cities to continue to improve their investment climate to raise PCI and enhance their competitiveness in particular and Vietnam’s competitiveness in general. Vietnam Business Forum would like to highlight major changes in PCI 2013 rankings.
Hanoi: Positive step forward
According to the report, all the largest economic centres positively progressed in the 2013 PCI ranking. Hanoi climbed 18 places in 2013 to the 33rd position from the 51st position in 2012 (scoring 53.4 points). Component indexes improved, particularly the index of land access and security of tenure scored 5.34 points (compared with 4.2 points in 2012), the index of proactivity of provincial leadership was 3.69 points (2.32 points in 2012), the index of business support services was 6.75 points (4.69 points in 2012), the index of legal institutions was 3.92 points (2.7 points in 2012), the index of informal charges was 4.67 points (5.5 points in 2012). The progress facilitated investors to do business in the capital city.
Mr Pham Van Khuong, Deputy Director of the Hanoi Department of Planning and Investment, said: “To improve the investment environment in 2013, Hanoi applied consistent solutions to improve PCI component indexes, with measures to accelerate administrative reform coupled with enhanced administrative disciplines being an important solution. Besides, the city had many measures, both direct and indirect, to support businesses, like extending the tax payment term, building funds to provide low-interest loans or add working capital for them amid economic slowdown. The city continued to improve the investment climate and accompany businesses. In 2014, Hanoi will continue to promote its achievements in 2013 and address its weaknesses and shortcomings. We hope that, in addition to the determination of the leadership, Hanoi will have the sharing of the business community.”
Quang Ninh jumps to fourth place
This year marked the amazing advancement of Quang Ninh province to fourth place from 20th place in 2012. However, the standing is not as important as management and administration policies of the provincial government in force in recent years, evidenced by the constant and great efforts of Quang Ninh province in administrative procedure reform and accompanying support of the business community.
Its advance by 16 places is the result of huge endeavours of Quang Ninh authorities in the past years. Ongoing reform policies in all economic and social aspects show important roles of all local government agencies and dynamism of provincial government. Nguyen Van Doc, Chairman of Quang Ninh Provincial People’s Committee, attributed the PCI leapfrog in 2013 to visible administrative reform which is beneficial to business activities. Besides, the province together with VCCI organised a conference on province-level PCCI to work out concrete plans for raising PCI.
The province has submitted the scheme on the construction of Van Don Special Economic Zone. It is considered the biggest breakthrough in investment attraction, especially human resource investment attraction. And, by tapping local potentials and advantages, the province, with four cities and one town, has all conditions to develop the marine economy, trade and natural resources.
The biggest challenge for Quang Ninh was infrastructure investment, especially transport infrastructure. Currently, the province submitted schemes on the construction Hai Phong – Quang Ninh Highway and Van Don Airport, and on the upgrade of key traffic routes and power grids to the Prime Minister. While developing service infrastructure, particularly recreational centres, the province continued to reform administrative procedures and promote investment. Quang Ninh focused on bettering the investment environment and listened to feedback from enterprises to consider troubleshooting solutions. The provincial government hosted monthly and quarterly direct meetings with the business community to learn about their problems and seek the best solutions and policies. In 2014, the province will concentrate on reforming public administration, streamlining State personnel apparatus, supporting businesses and attracting investment capital.
Thai Nguyen drops eight places
However, Thai Nguyen province saw an eight-place decline in the 2013 PCI ranking, from the 17th position to the 25th position in the rankings. Mr Nguyen Van Thoi, Chairman of Thai Nguyen Business Association, said “The recently released PCI 2013 honestly portrayed the realities in Thai Nguyen. Although Thai Nguyen has made a lot of effort to improve PCI, such effort is not enough.”
He added that, to raise the PCI, Thai Nguyen province must take more drastic actions; especially the local PCI Steering Committee must have stronger reforms, closer guidance and stronger actions. The province will further utilise the roles and responsibilities of the business community to local socioeconomic development and PCI improvement. Remarkably, the ongoing Samsung project will continue with successes and have a particularly important role in the socioeconomic development of Thai Nguyen province and will have positive impacts on the province’s PCI improvement in the investment attraction index in the coming time. This is considered the locomotive for the development of Thai Nguyen economy. It will create thousands of jobs in the province and in many other localities.
2014 is expected to see big changes in PCI standing because provinces and cities will offer more incentive policies for the business community. PCI helps local governments to identify their strengths and weaknesses to make proper changes in administration. In reality, PCI is generally known as a common voice of the business community to the local business environment.
Ngo Khuyen – Tran Trang
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