New factors in the PCI 2024 Report

Besides Hai Phong city's rise to the top, the PCI 2024 report also recognizes a 'new factor': Hung Yen province, which for the first time ranked in the Top 10.

A positive picture of provincial-level economic management.

Speaking at the announcement ceremony of the 2024 Provincial Competitiveness Index (PCI) Report on May 6th, Mr. Pham Tan Cong - Chairman of the Vietnam Federation of Commerce and Industry (VCCI) - said that the PCI report shows a positive picture of improved provincial economic governance, with the median score reaching 67.67 points, an increase of 1 point compared to the previous year and marking the eighth consecutive year exceeding the 60-point mark - a threshold considered to reflect a favorable business environment.

The PCI 2024 report was released by VCCI on May 6th in Hanoi . Photo: NH

Specifically, according to the Chairman of VCCI: "The core PCI index - an index reflecting the quality of core economic governance - reached 68.18 points, continuing to improve steadily since 2016. This is the result of the persistent reforms of many localities and the active monitoring from the business community."

Besides the improved scores, Mr. Pham Tan Cong also highlighted the emergence of "new factors" such as Hai Phong and Hung Yen. Specifically, Hai Phong city surpassed Quang Ninh for the first time to take the leading position with 74.84 points. This is compelling evidence of Hai Phong's successes over the years in economic growth and attracting investment.

A "new factor" appearing in the Top 10 of the PCI in 2024, also highly appreciated by the VCCI representative, is Hung Yen province. Sharing with reporters from the Industry and Trade Newspaper on the sidelines of the event, Mr. Pham Tan Cong said that Hung Yen's reform efforts have been recognized by the business community, and this will be a positive signal for the locality to attract investment and develop the economy in the coming time.

It can be said that the PCI 2024 announcement ceremony has concluded, but the story behind these numbers continues. It is a story of powerful transformation, of effort and innovation. It is a journey in which local authorities strive, working alongside businesses to promote healthy competition, placing businesses at the center, and acting for the sustainable development of the locality and the economy.

The Vietnam Chamber of Commerce and Industry (VCCI) presents certificates to representatives of the Top 10 localities with the best governance quality in 2024. Photo: NH

Vietnam is entering an ambitious transitional period, with the Party, National Assembly, and Government setting a target of 8% economic growth in 2025 and maintaining double-digit growth in subsequent years. In this context, economic experts believe that the Provincial Competitiveness Index (PCI) is not only a tool for measuring governance quality but also a crucial foundation for a high and sustainable economic growth program.

PCI acts as a policy radar, helping to detect bottlenecks and invisible barriers early on, thereby creating a transparent, favorable, safe, and fair investment and business environment.

"Especially in the context of General Secretary To Lam's affirmation of the role of the private economy as a 'lever for a prosperous Vietnam,' and the Politburo's recent issuance of Resolution 68-NQ/TW on May 4th on the development of the private economy, the PCI will continue to be a valuable source of practical data for policy planning, supporting private enterprises to develop strongly, reach regional prominence, and become the most important driving force of the economy," Mr. Pham Tan Cong affirmed.

Businesses are more optimistic about the business environment.

Besides acknowledging the efforts of local authorities in improving the investment and business environment, the PCI 2024 report also noted greater optimism from the business community regarding the investment and business environment, with positive improvements in governance quality, labor quality, significantly enhanced information transparency, and more favorable market entry procedures.

Mr. Dau Anh Tuan – Deputy Secretary General, Head of the Legal Department (VCCI) – speaks at the event. Photo: NH

Specifically, regarding labor quality, Mr. Dau Anh Tuan - Deputy Secretary General and Head of the Legal Department (VCCI) - stated that: The median percentage of businesses giving positive ratings to general education and vocational education in the provinces is 68% and 63% respectively, an increase compared to the previous two years.

In particular, 54% of businesses assessed the quality of the workforce as fully meeting most of their labor needs, an increase from 47% in 2023. Along with that, recruitment of workers in the general labor, technical, and managerial/supervisory categories was also more favorable than in previous years.

Regarding information transparency, businesses reported that the access points to planning and legal documents in 2024 were 3.11 and 3.23 points respectively, the highest levels since 2006. In addition, the percentage of businesses believing that "connections are needed" to access provincial documents has dropped to only 31%, nearly half the 61% of 2021, the lowest ever recorded.

The PCI 2024 report also highly praised the market entry procedures in 2024. Specifically, according to Mr. Dau Anh Tuan, the average time for business registration and updating enterprise information was only about 7 days and 6 days, respectively, much lower than the nearly one-month timeframe when VCCI began surveying the PCI 20 years ago.

In 2024, businesses continued to highly appreciate the quality of business registration procedures, with 93% stating that the procedures were transparent; 91% received clear and complete guidance; and 86% of businesses were satisfied with the attitude and expertise of the receiving staff.

The group of procedures related to conditional business licensing also showed improvement in the 2024 survey compared to 2023. However, in the 2024 survey, less than 50% of businesses were still satisfied with the conditional business licensing procedures. This indicates that this group of procedures still has much room for improvement, making it easier for businesses to enter the market in the future.

The PCI 2024 report is the result of a survey of nearly 11,000 businesses nationwide to publish a ranking of localities with outstanding economic governance quality, while vividly reflecting the reality of the business environment from the perspective of domestic and foreign business communities.

Nguyen Hoa

Source: https://congthuong.vn/nhung-nhan-to-moi-trong-bao-cao-pci-2024-386278.html