The rankings of the Provincial Competitiveness Index (PCI) 2017 announced by the Viet Nam Chamber of Commerce and Industry (VCCI) on 22 March showed that Quang Ninh Province was crowned the top performer for the first time ever with 70.7 points on a 100-point scale, followed by Da Nang with 70.1 points and Dong Thap with 68.78.
The three localities was also in the “excellent PCI tier because of haiving many initiatives to create favourable business environment.
Ho Chi Minh City secured the eighth positition whilst Ha Noi stood at 13th.
Da Nang, the winner for the past four years, continued to be listed in the top performers of provincial governance quality and infrastructure. In addition, the city was highly appreciated by domestic private firms for the effective handling of administrative procedures.
The 2017 PCI Report is the 13th iteration and is based on responses from 12,000 enterprises, including more than 10,200 domestic private enterprises from 63 cities and provinces and nearly 1,800 foreign invested enterprises in 21 provinces in Viet Nam.
The 2017 PCI Report witnessed impressive reform efforts by local governments across the country. Many governance areas have been improved in 2017 to remove obstacles for businesses. Informal charges have been on the decline, the business environment has been more equal, and the administrative procedures have been simplified.
The PCI is the result of a collaborative effort between the VCCI and the US Agency for International Development's Vietnam Competitiveness Initiative (USAID/VNCI) Project. Launched since 2005, the index measures economic governance for business development in all 63 provinces and cities of the country. PCI is comprised of sub-indices to measure the ease of doing business for the private sector including entry cost for new firms, land access and security of tenure, transparency, time costs of regulatory compliance, informal charges, proactivity of provincial leadership, policy bias, business support services, labor training and legal institutions.