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PCI 2011: Mountain province tops the list
The mountain province of Lao Cai has made history by becoming the first northern province to top the rankings of Vietnam’s annual Provincial Competitiveness Index (PCI), followed by Bac Ninh and Long An.
The information was released at a press conference by the Vietnam Chamber of Commerce and Industry (VCCI) in Hanoi on February 23.
These provinces have made great efforts to improve governance, leading to gradual improvements in their PCI scores over time, said VCCI.
Other strong performers include Ha Tinh and Binh Phuoc, which have risen to the top 10 after creating local legislation and task forces specifically aimed at areas of potential improvement in their PCI scores.
This was also the first time since the PCI surveys were conducted annually in 2005, that either Danang or Binh Duong was on top of the list. Meanwhile, Hanoi jumped from 43rd in 2010 to 36th, and HCM City from 23rd to 20th.
Overall, the past year showed a slight improvement in provincial governance. The weighted 2011 PCI score for a median province is over 59 points, about one point higher than 2009 and 2010. This reflects the continued commitment to reform economic governance by most provinces.
With the support of the US Agency for International Development (USAID), the PCI 2011, conducted by VCCI and USAID’s Vietnam Competitiveness Initiative, surveyed almost 7,000 Vietnamese businesses across all 63 cities and provinces. It reflects perceptions of provincial government performance regarding ease of doing business, economic governance, and administrative reform efforts that support private sector development.
US Ambassador to Vietnam David B. Shear highly valued the PCI, saying it has provided valuable feedback from businesses which can guide provincial reforms to attract more domestic and foreign investment and promote economic development.
VCCI Chairman Vu Tien Loc said that in the context of economic difficulties, positive business perceptions about provincial governance are a bright signal in the 2011 PCI report.
“We do hope that from this important message sent by the business community, the central and local governments will continue efforts to improve the business climate and enhance the competitiveness of Vietnam’s economy,” he said.
In addition to the index, the PCI team also surveyed nearly 2,000 foreign-invested enterprises (FIEs) in 61 provinces, providing the largest sample of the current profile of foreign direct investment in the country, and helping to identify challenges for building a competitive economy with dynamic growth by both foreign and domestic enterprises.
Key findings from the FIE survey revealed that although FIEs had increased revenues in 2011, there is greater pessimism about the next two years due to economic challenges.
According to firms involved in the survey, they continue to select Vietnam for its labor cost advantage and political stability, but heavily discount other governance factors. These results reflect the type of investor Vietnam has attracted so far.
vietnamnet
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