Thứ 6, Ngày 08/05/2020, 18:00
2019 PCI: Binh Duong continues to lead the Southeast Region
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08/05/2020 | Nguyen Trang

​BEGIC - On the morning of May 5, in Hanoi, the Vietnam Chamber of Commerce and Industry (VCCI) and the United States Agency for International Development (USAID) in Viet Nam jointly organized Announcement Ceremony of Provincial Competitiveness Index (PCI) in 2019.

According to the newly released PCI report of 2019, with 67.38 points, Binh Duong continues to be among the localities with good operating quality, leading the Southeast region.

According to the results of 10 PCI component indicators in 2019 in Binh Duong province, the highest is the Land Access Index, Labor Training, followed by: Transparency, Business Support Services, Cost time, Market entry. Meanwhile, the lowest indicators are Unofficial Costs, Fair Competition, Legal Institutions and Order Security.

Topping the PCI rankings in 2019 continues to be Quang Ninh (the locality with the 3 consecutive years leading), followed by localities: Dong Thap, Vinh Long, Bac Ninh and Da Nang.

PCI index with 10 component indexes, 128 sets of indicators, can be considered to evaluate all business environment of provinces and cities of Viet Nam. The PCI measures the actual quality of provincial economic administration, through local good practices.

According to the Head of the Legal Department of Vietnam Chamber of Commerce and Industry (VCCI) Dau Anh Tuan, 12,429 businesses from 63 provinces and cities across the country participated in the PCI 2019 survey, in which 1,583 foreign-invested enterprises (FDI). After 15 years of conducting the PCI survey (2005-2019), more than 141,000 enterprises responded to the PCI survey, including 125,160 private enterprises and nearly 15,850 FDI enterprises. For every 5 enterprises 1 enterprise participates in the PCI survey.

There is an improvement in the PCI in 2019, which is the average score of 63.25 points. The scores between provinces are no longer quite a distance. The lowest province in the rankings is approximately 60/100 points, compared to the previous time only at 39-40 points. Business environment tends to be more equal in provinces and cities. Transparency shows signs of improvement. The quality of the government's Web site has been improved; the business said it is accessible.

The report has shown a number of clear changes, including the increasing level of dynamism and creativity of the provincial government, the improvement of obstacles and difficulties for enterprises, a more equal business environment, and businesses have greater access to information, legal institutions and improved security, the unofficial cost burden continues to fall, administrative reforms have positive results etc.

Another highlight in the PCI 2019 report is that FDI enterprises continue to have a positive assessment of Viet Nam's business environment. The most impressive improvements are in the area of business registration, land access and unofficial cost cuts as well as the burden of compliance costs for businesses.

FDI enterprises also said that Viet Nam needs to continue promoting administrative procedures related to the operation period after registration, import and export procedures, social insurance, taxes etc. FDI enterprises want Viet Nam to have effective strategies and policies to improve the quality of labor, especially skilled workers.

However, the space for reform is still large, according to VCCI Chairman Vu Tien Loc, that access to public spending is still difficult. The rate of enterprises still having difficulties in administrative procedures on construction land is much higher such as ground clearance, construction planning, urban planning and investment policy decision etc. The previous unofficial cost of 68% now tends to decrease to 53% but is still above 50%.​

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