Improving PGI to promote sustainable economic development associated with environmental protection

The Provincial Green Index (PGI) is a set of indicators to evaluate and rank environmentally friendly localities, from a business practical perspective on criteria such as: the level of application of environmentally friendly technology, the level of management and environmental behavior of enterprises; the level of interest and willingness to invest in environmental issues of the government...

Safe production to create clean value chains is the goal of many Vietnamese enterprises.

• ABOUT PGI 2022

At the announcement ceremony of the Provincial Competitiveness Index (PCI) 2022 on April 11, 2023, for the first time, the Vietnam Federation of Commerce and Industry (VCCI) and the United States Agency for International Development in Vietnam (USAID) announced the PGI. Vietnam is also the first country to announce the PGI at the provincial level. The PGI was built to encourage and promote the efforts of provincial governments; provide investment information to serve policy making at both the central and local levels, aiming at the development of the private sector in the spirit of the National Green Growth Strategy and the National Strategy to Respond to Climate Change, minimizing the negative impacts of climate change and environmental pollution on production, business activities and business sustainability. The PGI is also an important tool to assess the effectiveness of public agencies on environmental protection.

According to USAID leaders, access to green growth resources brings many great impacts to businesses and the economy . This is the driving force for Vietnam to develop sustainably and realize its committed goals. PGI builds on the success of PCI and is a sign that the private sector is increasingly aware that environmental issues are as important as business performance and long-term economic growth. PGI will be published annually as part of PCI.

At COP26 (COP - Conference of the Parties: Conference of the Parties to the United Nations Framework Convention on Climate Change - an annual event) in November 2021 in Glasgow (UK), Prime Minister Pham Minh Chinh made a commitment that Vietnam strives to achieve net zero emissions by 2050 and two other commitments closely related to the agricultural sector: commitment to participate in the "Global Methane Emission Reduction" initiative and commitment to implement the "Glasgow Declaration on Forests and Land Use".

Vietnam is in the early stages of its green transition, so the PGI 2022 can be considered a set of indicators that allow for the assessment, measurement and comparison of policy progress across all four dimensions of environmental governance and the overall index. The PGI will contribute to accelerating Vietnam’s sustainable economic development and promoting Vietnam’s efforts to achieve its commitments made at COP26.

• LOOK AT PGI LAM DONG

Lam Dong ranked 36th (14.47 points) in the first PGI ranking. In the Central Highlands region, Lam Dong ranked behind Kon Tum (26) and ahead of Dak Lak (44), Dak Nong (48) and Gia Lai (52). Compared to the score of the leading province, Tra Vinh (17.67), Lam Dong is 3.20 points lower; compared to the province at the bottom of the ranking (63), Hanoi (12.52), Lam Dong is only 1.95 points higher; compared to the adjacent province (35), Dien Bien (14.55), Lam Dong is 0.08 points lower; and compared to the province right behind (37), Nghe An (14.46), Lam Dong is only 0.01 points higher... Thus, the point gap to change position is extremely small.

PGI has 4 component indexes. In the content of "Minimizing environmental pollution and negative impacts of climate change", Lam Dong scored 3.34 points - 0.9 points lower than Nghe An (3.43 points); the province with the highest index is Bac Ninh (6.85) and the lowest is Dak Lak (3.07). In the content of "Ensuring compliance with minimum environmental standards", Lam Dong scored 5.13 points - 0.92 points lower than Nghe An (6.05 points) and the province with the highest index is Da Nang (6.74 points), the province with the lowest score is Binh Thuan (4.03).

For the content of "Leadership role of provincial government in environmental protection/promoting green practices", Ben Tre (2.98) is the province with the lowest score and the highest is Hai Phong (5.35 points); Lam Dong scored 4.27 points - 0.89 points higher than Nghe An (3.38 points). For the content of "Preferential policies and business support services in environmental protection", the province with the lowest score is Bac Lieu (1.39 points) and the highest is Lai Chau (2.59 points); Lam Dong scored 1.69 points - 0.11 points higher than Nghe An (1.58 points).

Compared to the general level and its own score, Lam Dong is the worst in the content of "Preferential policies and support services for businesses in environmental protection".

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