Provincial competitiveness and green indices published

Sat, 11 May 2024 15:26:00  |  Print  |  Email   Share:

The Vietnam Chamber of Commerce and Industry (VCCI) has just launched the 2023 Provincial Competitiveness Index (PCI) and Provincial Green Index (PGI) reports.


Bac Ninh disappear from Top 30 PCI 2023
Top 30 PCI 2023

The VCCI developed and announced the PGI alongside the PCI to encourage localities in Vietnam to accelerate business climate reforms and pay greater attention to economic development associated with environmental protection. The rankins look at how different provinces are performing against one another across a range of factors.

The top five performers in the 2023 PCI are Quang Ninh, Long An, Haiphong, Bac Giang, and Dong Thap. While the PCI ranking this year saw significant improvement of such Mekong River Delta provinces as, Ben Tre (seventh), and Hau Giang (ninth). Lam Dong (17th) was kicked out of the top 20.

In the PGI 2023, the top-ranked provinces are Quang Ninh, Danang, Dong Nai, Hung Yen, and Ho Chi Minh City, while Tra Vinh, Lang Son, and Bac Ninh all dropped dramatically.

The report indicates a positive change in the proactivity of the national and provincial governments to create a legislative and policy framework that is conducive to the business environment, continuing the upward trend in recent years.

The 2023 results also reveal improvements in business support policies and administrative procedures. Notably, efforts to digitalize administrative procedures appear to be fruitful, with nearly 77 per cent of firms reporting that completing procedures online was more time and cost-efficient than traditional paper-based methods.

This year’s report also reflects the challenging economic context for the business community, as the share of businesses planning to increase their size of operations remains low. Many businesses reported hurdles in access to finance, market fluctuations, finding customers and business partners, finding suitable personnel, and completing bureaucratic procedures.

businesses have been struggling with the severe consequences of increasingly complex disasters and climate change. They have also been dealing with external factors that cause difficulties in their business operations such as escalating geopolitical tensions in several parts of the planet, high inflation in many countries and territories, global market downturn, and rising trade remedies.

Bac Ninh disappear from Top 30 PCI 2023
Top 30 PGI 2023

“For businesses to recover and thrive, provincial governments should deploy more practical solutions for improving the business climate such as accelerating administrative reforms, reducing procedural costs for businesses, and creating an equitable business environment. In the recent challenging economic context, the support, dynamics, and innovations of the provincial and municipal governments are immensely helpful. And to cope with global uncertainties and inconsistencies, the business community needs stability and consistency in the development and enforcement of the legal framework more than ever,” said Pham Tan Cong, chairman of the VCCI.

“The US Mission to Vietnam through the US Agency for International Development (USAID) is building on nearly 20 years of partnership with the Vietnam Chamber of Commerce and Industry to further increase Vietnam’s competitiveness in the world market by transitioning to a green economy,” said US Ambassador to Vietnam Marc E. Knapper. “By promoting environmentally friendly regulatory reforms and investment, the Provincial Green Index will advance Vietnam’s sustainable economic development and its ambitious net-zero emissions by 2050 target.”

With support from USAID, the 2023 PCI-PGI report was developed from responses from 10,676 businesses, including 9,127 domestic private companies and 1,549 foreign-invested enterprises (FIEs) operating in Vietnam.

After its inauguration as a part of the 2022 report, this year VCCI announced the PGI as a complete index. US Vice President Kamala Harris first announced USAID’s support for developing a green index to rally the private sector to climate action during her 2021 trip to Vietnam. This index provides inputs from the perspective of businesses to support provincial and municipal governments in environmental governance towards a balance between economic growth and environmental sustainability.

The 2023 PCI-PGI report demonstrates that high PGI scores are associated with better environmental quality and greater local climate resilience. However, provincial and municipal governments are facing many challenges such as finding and implementing local environmental initiatives and solutions, lack of resources and expertise, low collaboration in handling regional/inter-regional issues, or businesses not having enough awareness and motivation to change.

VCCI develops and announces the PGI alongside the PCI to encourage localities in Vietnam to accelerate business climate reforms and pay greater attention to economic development associated with environmental protection.

The 2023 PCI-PGI Report aims to provide practical information that can inform relevant governmental agencies at all levels in their policymaking and public administration, serving as a reliable reference and a driving force for localities to change stronger towards sustainability. The green index is also expected to be an important reference for investors in investment decision-making, leading to greener and more environmentally friendly projects.

By: Nguyen Huong/ Vietnam Investment Review



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