The Vietnam Chamber of Commerce and Industry (VCCI) and the US Agency for International Development (USAID) announced the index in Hanoi this morning, April 15.
The report was based on responses from around 12,300 enterprises, including nearly 10,700 domestic private firms from 63 provinces and cities and nearly 1,600 foreign-invested enterprises in 22 localities.
The Provincial Competitive Index (PCI) 2021 report was announced in Hanoi on Thursday
Quang Ninh achieved 75 points on a 100-point scale compared with its 73.4 points in the 2019 rankings. It was followed by Dong Thap, Long An, Binh Duong, Danang, Vinh Long, Haiphong, Ben Tre, Hanoi and Bac Ninh. According to chairman of the VCCI Vu Tien Loc, the PCI has increased the dynamism and creativity of provincial governments. Localities have made considerable improvements in administrative reform to facilitate the business and investment environment. However, the PCI report also indicated weaknesses. For instance, one of every surveyed four businesses said that state-owned enterprises were prioritised more than private firms. Meanwhile, 45% of interviewed firms admitted paying bribes for administrative procedures; 54% complained about harassment by state-owned management agencies. Meanwhile, up to 20% of surveyed businesses were not satisfied by the behaviour of employees from state-owned management agencies. Due to the impact of the Covid-19 pandemic, business confidence of enterprises in Vietnam dropped in 2020. Only 41% of private firms and foreign-invested businesses said that they planned to expand their operation in the country over the next two years.