The city ranks in the top ten again on the annual Provincial Competitive Index (PCI), which assesses the ease of doing business, economic governance, and administrative reform efforts in each of the nation’s provinces.
The report, released Thursday morning was a joint effort between the Vietnam Chamber of Commerce and Industry (VCCI) and the U.S. Agency for International Development (USAID). For the first time, Quang Ninh Province took the top spot, followed by former-front runner Da Nang, as well as Dong Thap and Long An. Saigon has repeatedly appeared in the top ten, though it has dropped from the 6th place in 2015. Hanoi, on the other hand, is at the 13th spot this time.
The report, which began in 2005, relies on surveys from over 8,000 existing domestic, private businesses, 2,000 newly established enterprises, 1,500 foreign-invested enterprises (FIEs), provincial-level panel data and past survey data. It claims that overall, perceptions of corruption are declining as are burdens of administrative procedures while access to land and security is growing worse. Overall, it claims that nearly every province has seen significant improvement which coincides with increased optimism and interest from foreign investors.
Vu Tien Loc, chairman of the VCCI, summarized the report with the claim that “positive improvements have been the dominant trend in Vietnam’s business environment for the past year.” Bac Lieu and Ha Tinh provinces experienced the most significant improvements.
Saigon’s place on the list didn’t move from last year, despite the concerted efforts of local officials. They had stressed the need for more cooperation between local government officials and businesses as well as improving online services to minimize the need for cumbersome in-person processes and fostering greater trust in legal institutions. The city, however, dropped in its scores related to legal institutions as well as land access and time costs. It improved in business support and proactivity.
Noteworthy national trends include the figure that only 59% of firms paid bribes, compared to 66% last year. Since 2016, there was a 10% increase, to 45%, in private sector respondents who have a positive attitude of provincial governments. In a sign of improved oversight, since last year, the number of firms receiving subject to overlapping regulatory inspections doubled to 26%.
Of course, the report also contains negatives. Some 70% of firms claim that “relationship is important or very important to get access to provincial documents” and only 36% of firms feel confident in going to the courts to settle business disputes compared to 60% in 2013.
In general, the report can be considered a positive attempt for the government to rely on analytics and feedback to locate areas in need of attention. As the document states, “Through its work, the PCI has influenced policy priorities and reform choices, generating momentum for policymakers to improve their reform efforts and even positively alter the daily work and management of local officials.”
Source: Saigoneer