Top 10 Vietnamese Provinces and Cities with the Best Competitive Advantage Today

According to the 2021 Provincial Competitiveness Index (PCI) ranking published on April 27, Da Nang ranks 4th nationwide with a score of 70.42. Businesses believe that the city’s investment and business environment still holds potential for further improvement to attract more investments in the near future. The 2021 PCI report, developed by the Vietnam Chamber of Commerce and Industry (VCCI) in collaboration with the U.S. Agency for International Development (USAID), places Da Nang in the 'Good' category with a score of 70.42/100. This marks an improvement from its previous 5th-place ranking over the last three years, achieving the highest score in the past five years.

The legal framework and security index in Da Nang in 2021 reached its highest level since PCI rankings began in 2006. Furthermore, the 2021 Business Support Policy Index hit its highest score since 2008, rising by 1.25 points compared to 2020. However, the market entry index in Da Nang saw a significant drop from 8.75/10 points in 2020 to 6.94/10 points, ranking 30th. This is the lowest score the city has received in this index since 2006.

Da Nang’s overall competitive index stands at 70.42 points.

The 2021 Provincial Competitiveness Index (PCI) ranked the following provinces in the national Top 10: Quang Ninh, Hai Phong, Dong Thap, Da Nang, Vinh Phuc, Binh Duong, Bac Ninh, Hue, Ba Ria-Vung Tau, and Hanoi. After several years outside the Top 10, Vinh Phuc rejoined the group of leading provinces in terms of provincial competitiveness in 2021. From 2016 to 2020, Vinh Phuc's PCI ranking steadily declined from 9th to 29th place. However, after five years, it has returned to the Top 10, surpassing its target of being in the Top 15 provinces by 2025.

As of the end of 2021, Vinh Phuc had 429 active FDI projects with a total registered investment of $7.1 billion from 20 countries and territories, including notable investors from China, Japan, Thailand, and Singapore. These FDI projects are mainly focused on manufacturing industries such as electronics, automotive, and motorbikes.

Vinh Phuc’s competitive index is 69.69 points.

In the 2021 Provincial Competitiveness Index (PCI) ranking, Binh Duong scored 69.61, placing 6th out of 63 provinces and cities. It continues to lead in the infrastructure index and stands at the top in the Southeastern region. This information was shared by Nguyen Tam Duong, Chief of the Provincial People's Committee Office, during a press conference on the province's socio-economic situation in April, held on May 6.

Since the beginning of 2022, industrial production in Binh Duong has gradually recovered, with growth in key export markets such as the United States, South Korea, Japan, and Taiwan (China). Key industries in Binh Duong, including wood processing, machinery, footwear, and textiles, have secured new export orders. Many businesses are actively recruiting workers in large numbers and offering various incentives to meet production demands.

Nguyen Tam Duong also noted that the province continues to implement the Government's Resolution No. 11 on economic recovery and development, along with the Covid-19 prevention program for 2022-2023. Additionally, efforts are underway to address challenges faced by businesses and expedite the development of the provincial planning for the period of 2021-2030, with a vision towards 2050.

Binh Duong's competitive index stands at 69.61 points.

The 2022 seminar on improving local governance and management indices was recently held by Bac Ninh People's Committee with 8 locations across various districts and cities. During the conference, Bac Ninh People's Committee Chairman Nguyen Huong Giang emphasized that the province has incorporated the goals of administrative reform, improving the business environment, and enhancing governance indices into the Party Congress Resolution, the province's ongoing program, annual directives, and government plans.

The province considers this an ongoing priority, one of the key drivers for development, determining political responsibility and tasks for departments, sectors, and localities to focus on. Additionally, Bac Ninh aims to create an image of a dynamic and friendly government, shifting from a mindset of “permission” and “licensing” to “service,” and moving from “removing obstacles” to “facilitating” businesses. Bac Ninh’s PAR INDEX reached 86.67/100, improving by 1.37 points compared to 2020, ranking 32nd. The Digital Transformation Index (DTI) for 2020 ranked 3rd nationwide, while in 2021, it ranked 4th, dropping by one spot but improving by 0.118 points compared to 2020.

Bac Ninh's competitiveness index stands at 69.45 points.

The Provincial Competitiveness Index (PCI) of Thua Thien Hue in 2021 rose by 9 positions compared to 2020. This marks the first time since 2013 that the province has entered the top tier nationwide. Regarding administrative procedure reforms, Thua Thien Hue has effectively addressed and handled administrative transactions for organizations and individuals. State management agencies regularly review and simplify administrative procedures, streamline processes, and shorten the time required for administrative tasks.

According to the leaders of Thua Thien Hue People's Committee, the province will continue to focus on creating a transparent investment environment by publicly sharing investment projects in the region. The province also prioritizes attracting investments in essential infrastructure and aims to develop key areas such as urban zones, seaport infrastructure, a concentrated IT park, specialized medical centers, and land reserved for high-quality healthcare projects. Additionally, Thua Thien Hue aims to strengthen its education and multi-sector training centers, and establish logistics hubs as vital sectors for the province's future. The province will also continue to support businesses by addressing obstacles and fostering closer ties between government and business sectors.

Thua Thien Hue's competitiveness index stands at 69.24 points.

The leadership of Ba Ria - Vung Tau province has identified enhancing provincial competitiveness as one of the key goals in leading and managing the socio-economic development. This objective aims to make Ba Ria - Vung Tau a reliable and promising destination for investors and businesses. To achieve this, the provincial government has implemented several initiatives in administrative reforms, improving public services, and creating a transparent and business-friendly environment for investors.

Notably, in terms of administrative procedure reforms, Ba Ria - Vung Tau has been highly praised by the business community. Recently, the provincial government has directed key agencies such as the Department of Natural Resources and Environment, Department of Home Affairs, Department of Science and Technology, Industrial Zones Management Authority, Department of Industry and Trade, and the Provincial Tax Department to improve the provincial competitiveness index. Additionally, the role of heads of departments has been strengthened to effectively improve the component indices within the PCI.

The provincial competitiveness index of Ba Ria - Vung Tau stands at 69.03 points.

In order to ensure that Hanoi's PCI ranking is among the top provinces nationwide, various departments and local authorities have actively implemented Action Program No. 14/CTr-UBND, dated January 19, 2021. They have also focused on key tasks aimed at improving the PCI index.

Specifically, efforts are focused on addressing the significant decline in several component indices and those that rank very low. Notably, the index for "Transparency and Access to Information" saw a notable drop (ranked 57th out of 63, down 23 places). Other indices, while showing improvement, still rank very low and require attention, including: "Market Entry Costs" (ranked 44th, up 17 places); "Land Access and Stability of Land Use" (ranked 50th, up 6 places); "Legal Framework and Public Order" (ranked 48th, up 6 places); "Fair Competition Environment" (ranked 51st, up 1 place); and "Proactivity and Leadership of Local Government" (ranked 29th, up 15 places), as well as other indicators related to civil servants and administrative reforms such as "Time Costs" and "Informal Costs".

Hanoi's provincial competitiveness index stands at 68.06 points.

Quang Ninh has held the top spot in the Provincial Competitiveness Index (PCI) for five consecutive years (2017-2021) and has been among the top 5 for nine years (2013-2021) in terms of outstanding economic governance. To maintain this position, on May 25, the province of Quang Ninh organized a conference to promote the implementation of Government Resolution No. 02/NQ-CP, dated January 10, 2022, which outlines the key tasks and solutions for improving the business environment and enhancing national competitiveness in 2022. The event also included an in-depth analysis of Quang Ninh's PCI performance in 2021, as well as discussions on sustainable solutions for improving the competitiveness index in 2022.

During the conference, Nguyen Xuan Ky, Secretary of the Quang Ninh Provincial Party Committee, emphasized that improving competitiveness is a key political goal for the province, as highlighted in the 15th Provincial Party Congress Resolution, which states: "Every year, maintain a leading position in PCI, PAR Index, SIPAS, and PAPI." Nguyen Minh Thao, Head of the Business Environment and Competitiveness Department at the Central Institute for Economic Management (CIEM), presented 10 recommendations for further improving the investment and business climate in Quang Ninh. These include using the provincial and district-level competitiveness indices as a foundation for reforms, improving public service quality, and expanding support services for businesses.

Quang Ninh's Provincial Competitiveness Index stands at 73.02 points.

According to the Provincial Competitiveness Index (PCI) ranking for 2021, recently released by the Vietnam Chamber of Commerce and Industry (VCCI), the city of Hai Phong made a remarkable leap of 5 places, reaching the 2nd position out of 63 provinces and cities with 70.61 points, an increase of 1.34 points compared to 2020. This achievement places Hai Phong among the top 10 localities with the best economic governance in Vietnam.

To continue improving its PCI score, the effective implementation of the DDCI index will be crucial. During the conference, Mr. Long presented two sets of solutions aimed at reducing the time and cost for businesses to enter the market. These included making market entry procedures easier, more convenient, and simpler, while shifting the perception of the business community towards the city's government. The proposed solutions are: (1) Solutions for improving the business registration process: Implementing a model that processes simple applications on the same day and offering support for preparing valid business registration documents. (2) Solutions for improving business licensing procedures: Connecting the business licensing process with a model that facilitates dialogue with enterprises about market entry procedures.

Hai Phong's Provincial Competitiveness Index stands at 70.61 points.

Dong Thap is the only province in the Mekong Delta region that has consistently ranked among the country's top provinces for competitiveness. According to the 2021 Provincial Competitiveness Index (PCI) report released by the Vietnam Chamber of Commerce and Industry (VCCI) on April 27, Dong Thap secured 3rd place with 70.53 points, remaining the top performer in the Mekong Delta region. From 2008 to 2021, the province has maintained its position among the top 5 provinces for economic governance for 14 consecutive years. Known for its 'Business Coffee' initiative since 2016, Dong Thap has expanded its support for entrepreneurship and improved management skills for local businesses.

The province also encourages the formation of business clubs and cooperatives to strengthen ties between individuals and enterprises, fostering a collaborative environment for sharing knowledge. On the sidelines of the PCI 2021 announcement, a reporter from Nguoi Lao Dong newspaper spoke with Mr. Pham Thien Nghia, Chairman of the People's Committee of Dong Thap, about the remarkable results the province has achieved in administrative reform and improving the business climate.

The Provincial Competitiveness Index for Dong Thap is 70.53 points.