Local competition and greener projects must be encouraged

The Provincial Green Index (PGI) results have been unveiled after a pilot in 2022. What are your thoughts on its role in Vietnam’s path towards sustainable economic development?

Marc E. Knapper, the US Ambassador to Vietnam

The PGI initiative enables the private sector to spotlight provinces that are becoming champions for green economic development. Provincial actions are critical to ensure Vietnam’s sustainability, as well as the ability to achieve its very bold global climate change goals.

Transitioning to a more environmentally friendly economy also increases Vietnam’s competitiveness.

Indeed, this year’s PGI report highlights a growing recognition among provincial governments about the need to combat environmental pollution and promote sustainable practices. Notably, most businesses have observed that local governments are already taking strong action to achieve these aims.

By looking at the index, companies can make informed decisions about where to invest, and provinces can also make informed decisions about how to make their provincial economies more green, more clean and more attractive to investors.

By promoting environmental regulatory reforms and improving environmentally friendly investments, the PGI helps to further Vietnam’s path towards sustainable economic development, as well as bolster its efforts to meet its ambitious climate change commitments.

So strong cooperation between the government and all businesses and local organisations is necessary to ensure that environmental sustainability is integrated into all aspects of economic development in Vietnam.

In what way can the Provincial Competitiveness Index (PCI) fortify the business climate in Vietnam and create avenues for investment, particularly for US corporations?

Last year, the United States and Vietnam elevated our bilateral relationship and comprehensive strategic partnership, reflecting our mutual aspirations for peace, cooperation, and sustainable development. Therefore, the results of the PCI for 2023 serve as a poignant reminder of the sustained advancements in provincial governance that have transpired over time. These improvements include a multitude of positive advancements in the execution of policies aimed at bolstering businesses, encompassing areas such as streamlined business registration processes and improved dissemination of market access information. Another improvement is the notable decrease in informal charges, a simplification of procedures facilitating new market entry, and an expedited pace of administrative procedure reforms.

The culmination of these efforts collectively alleviates undue burdens and fosters an environment conducive to the flourishing of the private sector, thus propelling economic growth and prosperity.

How can the PCI contribute to business development in Vietnam and attract more foreign investment into cities and provinces?

Since 2005, the PCI has been a cornerstone of the US government’s efforts, proving itself as a pivotal tool for enhancing accountability and transparency while encouraging provinces to foster greater investment and economic growth.

Thanks to the index, the US has become Vietnam’s leading export market and investor, as the index highlights the provinces with the highest competitiveness in creating conducive environments for growth, aiding investors in making informed decisions about where to allocate their funds.

What are your expectations for the government and businesses to enhance provincial competitiveness?

The US government, through our Agency for International Development and alongside the Vietnam Chamber of Commerce and Industry, have worked together for the past 20 years to improve the business-enabling environment of Vietnam. And through this collaboration, we have fostered a favourable environment for businesses to share feedback with provincial policymakers.

We look forward to Vietnam continuing to implement private sector reforms to take advantage of the opportunities presented by the shift in supply chains and investment patterns. Provincial governments have a critical role to play. They have to ensure a healthy business climate for the local industry, enabling businesses to develop as well as innovate. Private sector feedback is critical to identifying and addressing areas of improvement, and public-private collaboration will enable businesses to flourish.

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