Reform efforts and building trust through "telling" numbers.
The PCI 2025 report was announced in a very special context, with many new features. This is the first time the assessment has been conducted when the country still has 34 provincial-level administrative units; it is also the first time PCI 2.0 has been introduced, a comprehensively upgraded version of the Provincial Competitiveness Index, designed to measure the quality of governance in the new administrative space with 34 provinces and cities.
After 21 years of implementation, PCI 2.0 expands its scope from assessing the "business environment" to a comprehensive "private economic development ecosystem," with 9 component indicators reflecting everything from market entry conditions, access to resources, transparency, to the level of fair competition and the government's role in creating opportunities.
Notably, for the first time, the Business Performance Index (BPI) for the private sector was also piloted as a supplementary measure to assess the actual health of the private sector in each locality, in order to institutionalize Resolution No. 68-NQ/TW of the Politburo , which for the first time affirmed that the private economy is "one of the most important driving forces" of the economy.
According to the 2025 PCI results, no localities are in the "Very Good" category, 5 localities are in the "Good" category, 13 localities are in the "Fair" category, and 16 localities are in the "Average" category or below. Looking at the results, the 5 localities in the "Good" category in the 2025 PCI are: Da Nang; Hai Phong; Bac Ninh ; Quang Ninh; and Phu Tho.
Specifically, Da Nang leads in market entry. Bac Ninh leads in proactive governance and administrative compliance costs, thanks to its responsive policy capabilities and genuine support for businesses. Phu Tho excels in resource access, demonstrating strong efforts in facilitating access to capital, land, and inputs for production and business. Hai Phong shows strength in consistency, with 7 out of 9 component indicators ranking in the top 10 nationwide. Meanwhile, Quang Ninh continues to maintain its image as a dynamically governed locality, particularly strong in fair competition and proactive governance.
Meanwhile, the two major economic hubs of the country, Hanoi and Ho Chi Minh City, are not among the top performers in the PCI ranking. Specifically, the capital city, along with the provinces and cities of Dien Bien, Thanh Hoa, Ca Mau, Dak Lak, Nghe An, Can Tho, Ha Tinh, Son La, and Lai Chau, are in the "Average" category. In contrast, Ho Chi Minh City, along with the provinces and cities of Tuyen Quang, Hung Yen, Dong Nai, Lam Dong, An Giang, Hue, Ninh Binh, Khanh Hoa, Lang Son, Gia Lai, Thai Nguyen, and Lao Cai, are in the "Fair" category in terms of governance quality in the provincial competitiveness index ranking.
However, conversely, the BPI results present a different extreme. Ho Chi Minh City and Hanoi lead this index (5.67 and 5.41 points respectively) despite having only average and moderate PCI scores. These two economic powerhouses possess superior advantages in market size, innovation ecosystem, and investment attractiveness. Quang Ninh continues to be among the top BPI leaders, ranking 3rd with 5.33 points. Thus, looking at these results, Quang Ninh is among the "top" in both PCI and BPI, clearly demonstrating the link between governance quality and the actual effectiveness of the private sector.
Shift from management to service
The PCI 2025 results show that the national median score is only 63.90/100. Notably, the majority of localities remain in the "Good," "Fair," and "Average" groups, with no province reaching the "Very Good" level. This reflects the significant room for reform that still exists nationwide.
As a locality ranking among the top in the country in both the PCI and BPI indices, Chairman of the Quang Ninh Provincial People's Committee Bui Van Khang shared that this is the result of the province's persistent reform and innovation efforts, and also reflects the confidence of the business community and investors in the province's investment and business environment.
“The PCI (Provincial Competitiveness Index) is not just a ranking system, but a measure of governance capacity, reflecting the modernity of the administration and its ability to create a transparent, safe, and internationally competitive investment environment. Therefore, Quang Ninh is resolutely promoting the building of a proactive government, making a strong shift from a ‘management’ mindset to a ‘service’ mindset, using the satisfaction of citizens and businesses as a measure of the effectiveness of the government apparatus,” Mr. Khang expressed, while committing that Quang Ninh will continue to uphold the spirit of innovation, daring to think, daring to act, and daring to take responsibility to build a proactive government that creates a modern and reliable development environment for businesses in the new era.
According to Mr. Ho Sy Hung, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), legislative philosophy is also fundamentally shifting towards a development-oriented approach, focusing on businesses and citizens, with the motto that laws must pave the way for innovation and growth, instead of the "if you can't manage it, ban it" mentality. Based on the results of the two indicators, Mr. Hung believes this is a valuable reference for central agencies, the governments of 34 provinces and cities, investors, international organizations, and the business community.
During this pivotal transitional period, success will be measured not only by rankings, but by the ability to transform a favorable institutional environment into core competitiveness and genuine sustainable development for the private sector, realizing the aspiration to make the private sector the most important driving force of the national economy in the country's era of progress.
Mr. Dau Anh Tuan, Deputy Secretary General and Head of the Legal Department of VCCI, believes that policies are needed to promote the growth of the private sector. The report is not just a collection of statistics, but also a reminder that for the private sector to truly become a vital driving force of the economy, it requires more substantial and stronger support from all levels of government in building a constructive and transparent business ecosystem.
Based on the real-world examples of localities ranking at the top of both indicators, former Deputy Minister of the Interior Nguyen Tien Dinh argued that the commonality among these leading localities is not a single advantage but a balanced governance structure based on multiple aspects such as reducing compliance costs, strengthening legal credibility, and promoting the proactive role of local governments. This raises the question of whether localities need to shift from a management mindset to a mindset of partnering with businesses in order to accelerate development.
"Looking at the success of Quang Ninh province, it is clear that in the new context, provincial competitiveness must change in terms of administrative procedure reform, the attitude towards resolving issues for businesses, the spirit and attitude of service of each official and civil servant, and the assessment of satisfaction levels in serving the people and businesses. Through this, we can build a local government that fosters development, shifting from 'managing' to 'proactively serving' the people and businesses, rather than waiting for them to 'ask' for help," Mr. Nguyen Tien Dinh emphasized.
Dr. To Hoai Nam, Standing Vice President and General Secretary of the Vietnam Association of Small and Medium Enterprises:
With confidence boosted, businesses will be more inclined to invest and expand production.
I believe that the PCI 2025 results reflect a very thought-provoking trend: The competitiveness of a locality today no longer depends too much on geographical advantages, scale, or available resources, but increasingly depends on the quality of governance, implementation capacity, and the business-oriented mindset of the government apparatus. It is noteworthy that the leading localities such as Hai Phong, Da Nang, Bac Ninh, Phu Tho, and Quang Ninh all show a very clear common point: not pursuing individual achievements, but building a relatively balanced and stable governance structure. Businesses perceive the government's movement in reforming administrative procedures, reducing compliance costs, increasing transparency, improving access to information, and especially the spirit of support and resolving difficulties in the production and business process. Businesses today not only need faster licensing, but also a stable, transparent, consistent, and long-term predictable environment. Especially for small and medium-sized enterprises (SMEs) and household businesses, what they often need is not large incentives, but rather a reduction in "intangible costs" such as waiting times, overlapping procedures, a lack of consistency in implementation, or a reluctance to take responsibility among some implementing officials. The PCI (Provincial Competitiveness Index) is not simply about rankings. More importantly, it's about the extent to which businesses feel supported, trusted, and confident in the local government. When trust is strengthened, businesses will be more confident in investing, expanding production, and contributing more to socio-economic growth.
Source: https://daidoanket.vn/chuyen-tu-tu-duy-quan-ly-sang-tu-duy-dong-hanh.html
![[Photo] General Secretary and President To Lam presides over the meeting to approve the draft report on the results of the second inspection by the Politburo of the Standing Committee of the Hanoi City Party Committee.](https://vphoto.vietnam.vn/thumb/1200x675/vietnam/resource/IMAGE/2026/05/26/1779789811432_a2-bnd-4430-9620-jpg.webp)
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