Many businesses show strong interest in investing in Vinh Phuc province

Delving into reasons for PCI drop

Over the past 18 years of the Provincial Competitiveness Index (PCI), Vinh Phuc has ranked in the Top 10 for nine years, the Top 10-20 for six years, and the Top 20-50 for three years, according to the Vietnam Chamber of Commerce and Industry (VCCI). However, in 2023, the province experienced a decline in both score and ranking, falling short of its announced goal to re-enter the Top 10, as revealed at VCCI's PCI announcement ceremony in Hanoi last May.

Specifically, Vinh Phuc scored 68.81 PCI points, ranking 15th out of 63 provinces and cities, dropping 0.1 points and seven ranks compared to 2022. Notably, among 10 component indices, only four advanced in score and standing, one lost score but gained in standing, and five dipped in both score and ranking. In 2023, the province not only dropped seven positions in the PCI rankings but also saw its Provincial Green Index (PGI) fall by 17 places compared to 2022.

The disappointing PCI performance was due to the inadequate quality of proposed solutions to address business obstacles. Administrative procedures at public service centers and single-window divisions were slow, with businesses spending excessive time on registration, revisions, and other formalities. Authorities lacked innovation in resolving bottlenecks, and government-business dialogues were ineffective. Many businesses reported needing 'relationships' to access information and faced challenges in accessing business support services. Improving service quality at the Vinh Phuc Public Administration Center is therefore an urgent priority.

Determined to upgrade PCI ranking

Determining that PCI is the most important and objective measure of the quality of socioeconomic governance, in recent years, Vinh Phuc has implemented many resolutions, plans and initiatives to enhance its investment environment, notably including Decision 1774 on improving investment conditions and competitiveness for 2021-2025, the strategic investor attraction project to 2030, and a cooperation agreement with VCCI, underscoring its commitment to facilitating business growth. The province has assigned responsibility to each department, agency and locality in monitoring, urging and checking each component index, accelerating administrative reform and easing business activities toward building a fair, friendly and open business environment.

Looking directly at the weaknesses that led to its falling PCI ranking, following VCCI's PCI Announcement Conference, Vinh Phuc convened a meeting with relevant agencies tasked with monitoring and addressing each PCI subindex to analyze the causes of its underperformance. Among the five subindices that declined in both score and ranking, the Market Entry Index scored 7.32 points, ranking 32nd out of 63 provinces and cities. The Transparency Index dropped 18 places, scoring 5.76 points and ranking 46th. The Proactivity Index ranked 20th, while the Business Support Index fell 46 places to 50th. The Policy Bias Index and the Law and Order Index ranked 8th, falling short of the targeted 5th position. Vinh Phuc's leadership remains committed to addressing these challenges and fostering a more business-friendly environment.

The province will prioritize enhancing information technology and offering Level 3 and Level 4 online public services for certain administrative procedures. It will also continue to reform both domestic and international investment promotion efforts, regularly updating information and expanding the investment promotion database. Particularly for the Market Entry Index, the Department of Planning and Investment will enhance business support by streamlining processes such as reducing the time required for new and revised business registrations and providing clear guidance to help businesses efficiently complete administrative procedures. Efforts will also focus on promoting the use of information technology, encouraging online business registration, and improving the qualifications, professionalism and attitudes of public employees at one-stop service centers. The department will strengthen the transparency and accessibility of administrative procedures related to business registration.

Regarding the Business Support Policy Index, which slumped 46 places, a representative from the Department of Industry and Trade said that the department will continue to review, advise and propose the Provincial People's Committee reduce administrative procedures for businesses, list and publicize administrative procedures on the Provincial Electronic Information Portal, on websites of relevant agencies and localities and at the Vinh Phuc Public Administration Service Center. At the same time, the department will widely disseminate policies and guidelines, support businesses that need to build e-commerce websites, and help businesses, especially SMEs, access bank loans. The department will push investors to accelerate infrastructure development in industrial zones and foster a conducive business environment to attract further investment. It will also intensify trade promotion activities, develop e-commerce platforms, and facilitate access to information, policies and mechanisms for businesses. Regular monitoring and updates on local business performance will be prioritized to promptly address challenges and resolve issues faced by businesses and manufacturers.

Chairman of the Vinh Phuc Provincial People's Committee Tran Duy Dong regularly conducts on-site inspections and encourages businesses

To improve the ranking and return to Top 10 PCI performance amid existing difficulties, at the working session with related agencies and localities to evaluate and find solutions for better PCI and PGI performance, Standing Vice Chairman of the Provincial People's Committee Vu Viet Van emphasized the need for continued innovation and administrative improvements, urging the development of strategic plans and solutions aimed at enhancing all 10 PCI component indices. The Vinh Phuc Business Association will actively coordinate with relevant units to conduct surveys and synthesize reports on the earlier annual assessment of the District and Department Competitiveness Index (DDCI) to have a basis for launching solutions for better-performed PCI component indices; make quarterly reports on local business difficulties as well as corresponding solutions to the Provincial People's Committee.