VCCI and four localities including Hung Yen province, Hai Duong province, Hai Phong city, and Quang Ninh province signed the Agreement on Vietnam's Eastern Highway Economic Corridor (VEHEC), July 2022

Such cooperation is expressed in detail with commitment and cooperation documents, surveys, measurement indicators, trade promotion programs, and classes/training courses for local businesses. In addition, VCCI together with local authorities organizes meetings, dialogues and forums between domestic and foreign enterprises with leaders of provinces and cities to solve difficulties and obstacles in various fields such as tax, customs, agricultural and aquatic products, textile and garment, leather and footwear.

The above activities have helped local business communities to enhance their competitiveness, and promote their trade and connection with partners in other localities and in the world, thus significantly assisting economic development.

Joining with 63 provinces and cities to create an enabling business environment

One of the productive activities is that VCCI has signed MoUs with 63 provinces and cities across the country, committing to create a favorable business environment from 2016. This signing aimed to concretize Resolution 35/NQ-CP dated May 16, 2016 of the Government. Accordingly, the cooperation focused on holding periodic business dialogues, establishing and publicizing contact hotlines and direct Q&A columns on websites of provinces and cities to receive feedback and provide guidance and answers for enterprises; building and implementing sector-based business matching support and connecting with large enterprises and foreign-invested enterprises; and simplifying administrative procedures, especially reducing the time for construction permits and related procedures. This event demonstrated VCCI's resolve to accompany the business community and entrepreneurs to improve the business environment from the grassroots and local levels. In that process, many localities conducted reforms to facilitate businesses and investors in their localities.

PCI - a 18-year journey of administrative reforms

The most prominent effective cooperation with local authorities is the Provincial Competitiveness Index (PCI), launched in 2005. The PCI Index is implemented by VCCI with support from the United States Agency for International Development (USAID) in Vietnam. It measures and assesses the quality of economic management, the degree of convenience and friendliness of the business environment and administrative reform efforts of provincial and municipal governments in Vietnam, thereby promoting private sector development.

Since its debut, PCI has been highly appreciated because it is built from the largest annual business survey data, the most elaborate methodology in Vietnam today. The PCI index is the "common voice" of the business community on the business environment in provinces and cities in Vietnam.

The PCI Index is not intended for mere scientific research or to praise or criticize provinces with high or low PCI scores. Instead, the gauge explores and explains why some provinces and cities outperform others in economic development, job creation and economic growth.

With the outcomes announced annually and the data system publicly posted on the PCI website (www.pcivietnam.vn), this is a useful reference for leaders of provinces and cities as well as policy-makers to identify bottlenecks in economic management and select appropriate solutions to reform economic governance in the most effective way.

In recent years, by speeding up post-PCI activities like organizing PCI analysis and consultation workshops for localities, VCCI continues providing more effective support for localities to enhance their business and investment climate, develop the economy, attract investors and relate PCI outcomes with efforts to upgrade the business environment and reform administrative procedures.

VCCI leaders and business representatives at the ceremony marking the 75th anniversary since President Ho Chi Minh sent a letter to business people

Strengthening intra-regional and inter-regional connectivity

Strengthening intra-regional and inter-regional connectivity to join global value chains and create a new development space is one of the Party guidelines stated in the Document of the 13th National Party Congress as well as the 10-year Socioeconomic Development Strategy in 2021-2030.

Accordingly, one important cooperation between VCCI and localities is the Vietnam Eastern Highway Economic Corridor (VEHEC) Initiative. This nearly 300-km economic corridor starts from Hanoi to the border gates, running through Hung Yen, Hai Duong, Hai Phong and Quang Ninh. The VEHEC Agreement was signed by VCCI and leaders of four provinces and cities in late July 2022 toward building a sub-regional economic connectivity model, creating a new space for development, fully tapping local advantages, forming an enabling business environment, achieving high economic growth and a thriving business community, creating growth poles in the Red River Delta and the northern region. These four localities have very dynamic governments, a very ideal investment climate with the best highway systems, three international airports, deep-water seaports, industrial parks and abundant human resources with a population of nearly 7 million people.

Toward the future

In the coming time, VCCI will focus on boosting cooperation with provinces and cities to jointly achieve three goals: Promoting the development of entrepreneurs, enterprises and local business associations; expanding domestic and international trade and investment cooperation; and building a favorable business environment, speeding up local economic growth and green sustainable development.

Many important activities of VCCI are also involved in cooperation with localities: Fostering cooperation in building an enabling business climate, enhancing competitiveness and promoting green and sustainable growth, including the PCI Index and the Green Index.

Moreover, VCCI will enhance the working capacity and quality of local business associations and promote business ethics and business culture. Specifically, VCCI will organize training courses on skills and experience, business leadership and Vietnamese entrepreneurial ethics. It will host a national songwriting contest in honor of Vietnamese entrepreneurs.

In particular, VCCI will support localities to expand international economic cooperation and capture opportunities from free trade agreements (FTAs) that Vietnam signed. Specifically, trade promotion and investment attraction programs organized by VCCI in key markets such as China, Japan, South Korea, Taiwan, the EU and the U.S. will invite local and regional authorities and businesses. VCCI will be ready to provide specific support for localities seeking to launch overseas trade and investment promotion and organize training classes on FTA exploitation for businesses.

Vo Tan Thanh

VCCI Vice President