Balance in multiple dimensions
According to VCCI, after 21 years of continuous implementation, the 2025 report marks the biggest methodological upgrade to date, with the introduction of PCI 2.0.
The report is based on a large-scale empirical survey involving 3,546 domestic private enterprises, 586 foreign-invested enterprises (FDI), and 1,001 business households across all 34 provinces and cities. This is one of the most comprehensive and in-depth surveys of Vietnam's private sector in many years.
The restructured PCI 2.0 version comprises 9 component indicators with 98 criteria. These indicators include: market entry; access to resources; transparency; administrative compliance costs; informal costs; fair competition; business support policies; legal institutions; and proactive governance.
According to the above classification, in the PCI 2025, no locality was classified as "Very Good" in terms of governance quality, and the majority of localities had scores concentrated in the average and fair ranges.
The localities in the "Good" governance quality group include Bac Ninh , Da Nang, Hai Phong, Phu Tho, and Quang Ninh. According to the Vietnam Chamber of Commerce and Industry (VCCI), all five localities share an important characteristic: they did not rise based on a single advantage. Each locality in this group has at least 5 out of the 9 component indicators ranking among the top 10 localities nationwide. This shows that this year's leading group was formed from a relatively balanced governance structure across multiple dimensions, rather than from a single exceptional achievement in one area.
A key commonality among this group is their ability to maintain a high level of fairness while simultaneously reducing compliance costs, strengthening legal credibility, improving market equity, or promoting a proactive role for the government.
In particular, Da Nang leads the nation in "Market Entry" (8.7 points), and is also among the top in "Information Transparency", "Fair Competition", "Costs of Complying with Administrative Procedures" and "Legal Institutions".
The local area's strengths lie in the entire initial chain of interaction between businesses and the government: from market entry and access to information to the quality of procedural processing and the reliability of the implementing institutions.
Reforms need to continue.
Mr. Nguyen Tien Quang, Director of VCCI's Central and Central Highlands region, observed that the PCI 2025 results reflect a thought-provoking reality: business environment reform is no longer simply a race in administrative procedures, but has shifted to a competition in the quality of governance, implementation capacity, and the ability to genuinely support businesses.
In the context of a volatile global economy, declining demand, rising input costs, and increasingly stringent green, digital, and transparent standards, the pressure on local governments has also increased significantly. Businesses today need not only "fast procedures," but also a stable, predictable, transparent investment environment that can support businesses in adapting to new trends.
The fact that no locality has yet achieved the "Very Good" category indicates that there is still significant room for reform. Some places have reformed quickly in market entry but have not been strong enough in post-inspection, land issues, access to capital, digital transformation, or support for innovation. In some places, policies are good, but implementation is inconsistent across different levels and departments.
Therefore, PCI 2.0 places clear pressure on localities: if they want to maintain competitiveness, they must shift from "management" to "service," from processing applications to partnering in development. This is a challenge, but also an opportunity for localities to reinvent their governance models.
Regarding Da Nang's results, Mr. Quang stated that they clearly reflect the city government's strong efforts in self-renewal and reform over the past period. Da Nang is gradually shifting from a business management mindset to one focused on creating a favorable environment for business development. The city is accelerating the digitalization of administrative procedures, shortening processing times, increasing transparency, and enhancing the accountability of public agencies. The business community highly appreciates the city leaders' proactive approach, willingness to listen, and quick policy responses.
“Da Nang’s ability to maintain the image of a dynamic, friendly, and business-oriented government is a huge advantage. However, PCI 2.0 is also a ‘dynamic benchmark,’ and being in the lead today is not the final destination. The important thing is that Da Nang must continue to implement deeper reforms in areas of concern to businesses, such as access to land, high-quality human resources, green transformation, and the innovation ecosystem…,” Mr. Quang said.
Source: https://baodanang.vn/buoc-chuyen-minh-moi-3339253.html
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