Hue City ranked 6th in the PCI ranking in 2024 (Photo: VCCI)

PCI - a "mirror" reflecting the quality of governance.

From 17th place in 2020, Hue has made a breakthrough in recent years, successively ranking 8th (2021), 6th (2022), 8th (2023), and returning to 6th place in the PCI ranking in 2024. This is not a coincidence, but the result of a strategic transformation process with many synchronized reform pillars: from streamlining administrative procedures and strong digital transformation to promoting transparency and reducing informal costs for businesses. In particular, the development of e-government and smart city applications through the Hue-S platform has contributed to shortening the gap between the government and citizens/businesses, creating a friendly, efficient, and timely administrative environment.

In particular, the city has promoted the application of e-government and smart city initiatives, exemplified by the Hue-S platform, to facilitate interaction between citizens and the government. This has helped bridge the gap between the government and citizens/businesses, creating a friendly, efficient, and timely administrative environment on a digital platform.

Chart showing the 10 component indicators of the PCI of Hue City for the period 2020-2024 (source: pcivietnam.vn)

The team of officials – the "flying wheel" for reform.

A key highlight in the success of improving Hue City's business and investment environment is the shift in mindset and capacity of its officials and civil servants. Moving away from a "management-based" approach, many departments, agencies, and localities in the province have formed a "service-oriented administration" team that is close to the people, understands the market, is knowledgeable about its work, creative, and willing to take responsibility.

In particular, many departments, agencies, and district-level governments have seen officials proactively addressing difficulties for investors, listening to feedback from businesses, and considering citizen satisfaction as a measure of public service competence. A segment of young, tech-savvy, responsible, and honest officials are gradually shaping a new image for the city's administration. Along with the decisive leadership of the city's leaders in managing socio-economic development, business development, and the investment environment, fundamental changes have been made to the socio-economic development of Hue City in recent times.

However, there are still quite a few limitations that need to be frankly acknowledged. Some officials remain passive, lack inter-agency coordination skills, and have not truly positioned themselves as "partners with businesses." Avoiding responsibility, reluctance to innovate, or "waiting for instructions" remain obstacles in some areas such as land, construction, and the strategic investment environment. This is also reflected in the analysis of Hue's component indicators regarding access to land, informal costs, transparency, etc.

Investing in port infrastructure will create momentum to attract investment (Photo: Dinh Hoang)

The time to break through.

Hue is facing opportunities for development now that it has become a centrally-governed city. In the current context, the transition from a two-tiered local government model requires a streamlined government with versatile officials who possess strong economic management skills, market acumen, understanding of investors, and professionalism in all official interactions.

Therefore, the city needs to continue reviewing and evaluating the capacity and ethics of public service, especially in the administrative sector related to investment, construction, planning, and resources. Publicizing the process of handling applications and maximizing the application of digital transformation, improving the capacity of officials who serve the public and those who work with businesses, and "combating inertia from within" will be key to maintaining the trust of the business community. At the same time, the human resource development strategy needs to be properly focused: selecting talented individuals, building mechanisms to retain talent, and most importantly – creating a public service environment that values ​​dedication and integrity.

Hue maintaining its Top 10 ranking in the PCI (Provincial Competitiveness Index) in 2024 is an encouraging result, but it also presents new challenges. Maintaining development and creating a leap forward in the investment and business environment is crucial, so that Hue becomes not only a cultural destination but also a center for innovation, technology, and high-end tourism in Central Vietnam. To achieve this, besides good planning and modern infrastructure, the key factor remains a team of dedicated and competent officials who act for the city's development. This is Hue's most sustainable competitive advantage in the future.

Dr. Cung Trong Cuong

Source: https://huengaynay.vn/chinh-polit-xa-hoi/theo-dong-thoi-su/dong-luc-tu-cai-cach-hanh-chinh-and-doi-ngu-kien-tao-153362.html