Quang Ninh sets record for seven years at the top of provincial competitiveness rankings

Quang Ninh maintained its top position for the seventh consecutive year, Long An and Dong Thap made remarkable progress, while the PCI of the two economic powerhouses, Ho Chi Minh City and Hanoi, continued to decline.

On the morning of May 9th, the Vietnam Chamber of Commerce and Industry (VCCI) announced the Provincial Competitiveness Index (PCI) rankings for 2023. This index, conducted periodically since 2005, is one of the indicators used to assess the ability of local governments to build a favorable business environment and attract investment.

The 2023 PCI results are based on a survey of 11,000 businesses, including more than 9,100 domestic private companies and 1,500 FDI enterprises.

Similar to last year, the PCI 2023 only mentions the top 30 localities with the highest scores, aiming to encourage focus and change efforts from leading provinces and cities.

Quang Ninh maintained its top position for the seventh consecutive year with 71.25 points. Since 2017, this locality has consistently ranked first in the quality of economic governance, with numerous initiatives to attract investment and reform administrative procedures.

This province surpassed Da Nang's previous record of topping the PCI ranking for six consecutive years. The locality made its mark in reducing administrative burdens for businesses, achieving the highest score nationwide in the time cost component. Meanwhile, Quang Ninh ranked second in the business support index and third nationwide in efforts to reduce informal costs for businesses.

However, top-performing localities like Quang Ninh are showing signs of stagnation. Compared to last year, the province's overall score decreased by 1.7 points, from 72.95 last year.

A view of Ha Long City, Quang Ninh Province. Photo: Ngoc Thanh — A view of Ha Long City, Quang Ninh Province. Photo: *Ngoc Thanh*

Long An ranked second with 70.94 points, showing progress in its score and climbing 8 places compared to 2022. Businesses highly appreciated the province's efforts in reducing informal costs and the quality and efficiency of administrative procedure reforms.

Besides Quang Ninh and Long An, other provinces in the top 5 include Hai Phong (70.34 points), Bac Giang (69.75 points), and Dong Thap (69.66 points).

For the first time, Phu Tho has been included among the top 10 provinces and cities with the best economic governance in the country. The locality is highly regarded by businesses for the quality of its workforce training.

While many localities improved their PCI rankings, Ho Chi Minh City maintained its 27th position; Hanoi dropped 8 places to 28th.

In Hanoi, within the PCI component, the indicators for land access, time costs, fair competition, and labor training all decreased compared to last year. A positive aspect for this locality is the improvement in the indicators for market entry and informal costs.

Following a pilot program in 2022, the Vietnam Chamber of Commerce and Industry (VCCI) also announced the Provincial Green Index (PGI) this year . This index aims to support provincial and city governments in environmental governance, balancing economic growth goals with environmental sustainability. Quang Ninh, Da Nang, Dong Nai, Hung Yen, and Ho Chi Minh City ranked highest in the 2023 PGI.

Mr. Pham Tan Cong, Chairman of VCCI, stated that this year has seen many positive changes in the governments of provinces and cities. However, the challenging economic situation is also reflected in the report, as the percentage of businesses planning to expand their operations in the near future remains low.

"Businesses report facing numerous difficulties in accessing credit, finding customers, market fluctuations, a shortage of skilled labor, and administrative procedures," a VCCI representative informed.

According to Mr. Cong, businesses are also facing the complex and serious consequences of climate change. External factors are increasing difficulties for business operations, such as geopolitical tensions, high inflation in many countries, declining global consumption and investment, and increased protectionist and trade defense measures.

"To support businesses in their recovery, localities need to implement more substantive solutions to improve the business environment, reform administrative procedures, and reduce costs," Mr. Cong said.

The VCCI chairman added that, in the context of many uncertainties and fluctuations in the global situation, businesses need stability, consistency, and reliability in the development and implementation of policies and laws more than ever.

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