PCI Report released, Hanoi is among the top 10 for the first time

Hanoi in top 10 by PCI for first time

March 29, 2019 | 07:59
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Quang Ninh successfully protects its No.1 position on the Provincial Competitiveness Index (PCI) ranking for the second year and for the first time, Hanoi ranks among the top 10, higher than Ho Chi Minh City.
hanoi in top 10 by pci for first time
Dau Anh Tuan , General Director, Legal Department, VCCI, Director of PCI program announced the ranking 2018

This information was released in the annual report on PCI by the Vietnam Chamber of Commerce and Industry and the United States Agency for International Development in Vietnam.

Since 2005, the first year that the PCI report was released, 2018 reported the highest PCI figures. The report was based on the responses of over 12,000 enterprises, including almost 11,000 private enterprises operating in 63 cities and provinces and over 1,500 foreign-invested enterprises (FIEs) across the nation.

The 2018 PCI report showed a positive change in the business environment. Informal charges continue to be cut, the business environment for the private sector is becoming more equal, and administrative reforms are improving clearly. However, enterprises expect more transparency in the business environment, better quality labour force, and improvements in business supporting services.

With 49 per cent of private enterprises and 56 per cent of FIEs planning to expand business in the next two years, the report showed positive business prospects.

Standing at the top of the ranking is Quang Ninh with 70.36 out of 100 points. All the 10 indicators of this northenr province’s PCI range between 6.04 to 7.96 points.

Over the last year, Quang Ninh has maintained the speed of reforming its business environment. The province has implemented the four-on-site method, including receiving, appraising, approving, and returning results for administrative work at the provincial and district levels.

“This helps save a lot of time for enterprises,” Nguyen Van Thang, Vice Chairman of the Quang Ninh People’s Committee, told VIR. “Quang Ninh has made great efforts to improve the investment environment and strengthen management so that the government and enterprises can work together and enterprises’ difficulties can be handled in time,” he added.

Last year, 80 per cent of enterprises responding to the PCI survey in Quang Ninh said that the administrative procedures were shorter than required in regulations and 74 per cent of enterprises was of the opinion that the paperwork here was simple (the highest rate in the country).

While many businesses and investors in other provinces have difficulties with land administration procedures, 65 per cent of enterprises in Quang Ninh said that they have no trouble. That is why Quang Ninh ranks at the top in this indicator with 7.77 points.

In 2018, Quang Ninh attracted over VND 70 billion ($3 million) in investment capital.

Meanwhile, Hanoi jumped four ranks since 2017 to be at the ninth position.

“In the six-year PCI ranking, Hanoi has increased by 41 levels from 51st in 2012 to 9th in 2018. This is a long journey with big efforts,” Nguyen Doan Toan, Deputy Chairman of the Hanoi People's’ Committee, said.

According to him, the PCI is useful information, an indicator, and a clear goal for Hanoi to reach. “Improving this index has become one of the city's top missions,” Toan emphasised.

Over the last year, Hanoi has showed significant changes in the quality of the one-stop shop for business registration. 71 per cent of Hanoi’s enterprises said that bureaucratic staff have professional knowledge (57 per cent in 2017), while 86 per cent said that the staff are enthusiastic and friendly (53 per cent in 2017). The rate of enterprises having to wait for more than three months to complete procedures in setting up a company has dropped sharply from 17 per cent in 2017 to 5 per cent last year.

“Hanoi has outlined a programme dedicated to improving its PCI score. Accordingly, by the end of 2020, Hanoi was to be among the top 10 cities and provinces with the highest PCI score. But we have managed to do it in 2018. This is a great point of pride for Hanoi, though we still have to improve more,” Tran Ngoc Nam, deputy director of the Hanoi Department of Planning and Investment, told VIR.

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional