Top 15 Provinces and Cities with Provincial Competitiveness Index in Vietnam Today

Quang Ninh maintains its lead in PCI 2021 with a score of 73.02. In this year's PCI rankings, Quang Ninh is the only province rated as 'Excellent' in economic governance. This marks the fifth consecutive time that Quang Ninh has topped the national PCI scores. The province's success in 2021 stems from its special efforts, with the local government demonstrating proactiveness, determination, and innovation in its leadership. Despite the challenges posed by the COVID-19 pandemic in 2021, the provincial Party Committee maintained its commitment to improving the quality of local governance. They issued Resolution No. 05-NQ/TU to intensify administrative reforms, enhance the business investment environment, and boost provincial competitiveness for the period 2021 – 2025, with an orientation towards 2030. Quang Ninh aims to build an innovative government that measures satisfaction based on serving the people and businesses. The provincial People's Committee annually issues an Action Plan for implementing improvements in the business investment environment, aligning with the directives of Government Resolution No. 02/NQ-CP and assigning tasks for improving each PCI indicator for departments and agencies.

Provincial Competitiveness Index: Quang Ninh scores 73.02 points

The province of Dong Thap achieves a PCI score of 70.53, maintaining its lead among provinces in the Mekong Delta region. The report states that in 2021, Dong Thap has consecutively been part of the top 5 provinces with the best management quality nationwide for 14 years from 2008-2021. Known for the entrepreneurial initiative 'Business Coffee' since 2016, Dong Thap has expanded its support for startups and enhanced the management capabilities of local businesses. The province also encourages the establishment of clubs and cooperatives to strengthen connections between individuals and business establishments, fostering the sharing of experiences and mutual support in business activities.

The effective form facilitates the connection of value chains locally, especially in agricultural product value chains. This marks the 14th consecutive year that Dong Thap is in Group 05 and the 8th consecutive year in Group 03 provinces/cities with the 'most excellent economic management quality in the country.' Dong Thap is also recognized by businesses as one of the top 10 provinces, cities with the leading PCI scores in Vietnam for 2021.

Provincial Competitiveness Index: Dong Thap achieves a score of 70.53.

Securing the second position in the PCI 2021 rankings is the city of Hai Phong with a score of 70.61. Hai Phong has improved by 5 ranks in this year's PCI ranking, reaching its highest position to date due to efforts in facilitating the local business environment. The city has focused on timely resolving emerging issues in business operations through direct monthly dialogues between businesses and the city's People's Committee leaders and relevant departments.

Securing the 5th position in this year's ranking with a score of 69.69, the province of Vinh Phuc makes a comeback. Since 2020, the provincial government has set the goal of '3 goods,' including a comprehensive and favorable legal environment, good technical infrastructure, and excellent business services. Administrative procedure reform is considered a focal task, vigorously implemented to reduce time and simplify procedures. For example, the province commits to reduce the pre-VAT inspection time at the taxpayer's headquarters to 40 working days and cut down administrative procedures for tax payment to the state budget to under 115 hours per year.

The province has also established and efficiently operated a modern one-stop department at all three levels. Particularly, the province's hotline system operates effectively in 5 languages: Vietnamese, Chinese, English, Japanese, and Korean. According to VCCI, Vinh Phuc ranks 5th out of 63 provinces and cities nationwide. Important indices such as time cost (8.46 points), unofficial cost (8.05 points), legal procedures (7.78 points), land accessibility (7.56 points); equality in competition and dynamism (all above 7 points) have increased compared to the 2020 rankings.

Provincial Competitiveness Index: Vinh Phuc achieves 69.69 points

Similar to Dong Thap province, the city of Da Nang has demonstrated one of the most stable performances in the evaluation of economic management capabilities over time. With a score of 70.42, Da Nang improves its ranking by one position compared to 2020 to maintain the 4th position in the PCI 2021 ranking. Specifically, this year Da Nang has five indices reaching the highest scores in the last 5 years, including: Land access (7.51/10, ranked 10th); Informal cost (7.29/10, ranked 23rd); Dynamism of provincial government (7.01/10, ranked 26th); Business support policies (7.57/10, ranked 9th); Legal and order framework (7.33/10, ranked 24th).

In addition to regularly implemented administrative procedure reform measures, Da Nang has established inter-agency task forces to resolve difficulties in construction investment projects. These task forces will quickly address business issues and help the city government provide timely support solutions. The task forces will also actively support investment attraction efforts and improve the business environment in the city.
Provincial Competitiveness Index: Da Nang achieves 70.42 points

6. Bac Ninh

In 2021, the Provincial Competitiveness Index (PCI) of Bac Ninh reached 69.45 points, ranking 7th and rising 3 places compared to 2020. Chairman of the Provincial People's Committee Nguyen Huong Giang emphasized that the province has set goals for administrative reforms, improving the business environment, and enhancing operational and local governance indices in the Resolution of the 20th Provincial Party Congress, Programs, Resolutions of the entire term, and Directives, annual plans of the Provincial Government. The locality considers this a regular task, one of the main driving forces for development, to determine responsibilities and political tasks for the Departments, sectors, and localities to focus on implementing.

Mr. Dau Anh Tuan, Member of the Standing Committee, Deputy General Secretary of VCCI, pointed out the advantages, limitations to improve, and solutions to enhance the quality of local economic management. Accordingly, in the coming time, Bac Ninh needs to review the business environment by sector based on the results of the PCI 2021 survey, especially in areas that need improvement. In addition, the province should build an image of a dynamic, friendly government, shifting from the mindset of 'allowing' and 'licensing' to the mindset of 'serving,' shifting strongly from 'removing difficulties' to 'creating convenience' for businesses...

Provincial Competitiveness Index: Bac Ninh achieves 69.45 points

7. Binh Duong

Binh Duong holds the 6th position with 69.61 points. In the 2021 PCI's 10 component indices, Binh Duong has 05 indices increasing, including: Land access, Transparency, Time cost, Informal cost, Business support policies; 05 indices decreasing, including: Market entry, Equal competition, Dynamics of provincial government, Labor training, Legal framework and public order.

8. Ba Ria - Vung Tau

Ranked 9th with 69.03 points, Ba Ria - Vung Tau has risen by 6 places compared to 2020 (in 2020, Ba Ria - Vung Tau ranked 15th out of 63 provinces and cities nationwide). This is the highest level Ba Ria - Vung Tau has achieved in the past 6 years. This result helps Ba Ria-Vung Tau rise to the 2nd position in the Southeast region, only after Binh Duong (6th) and surpassing Ho Chi Minh City (14th). Provincial leaders in Ba Ria - Vung Tau identify the enhancement of provincial competitiveness as a key focus in leading and managing economic and social development. This is also the goal to make Ba Ria - Vung Tau a reliable and promising destination for investors and businesses. Therefore, the provincial People's Committee has given various directives in administrative reform, improving the quality of public and administrative services, creating a transparent investment and business environment for investors and businesses.

The statistical indices for the first 4 months of 2022 in the province show a strong recovery in the economy of Ba Ria - Vung Tau, notably in the industrial production, trade, and tourism services sectors. The comeback of businesses, thanks to resolute and timely government and provincial directives, has created confidence and trust for the business community.

Provincial Competitiveness Index: Ba Ria - Vung Tau achieves 69.03 points

9. Thừa Thiên - Huế

This year, Thua Thien Hue province ranks 8th out of 63 provinces and cities in the ranking, rising 9 places compared to 2020. Thua Thien Hue scores 69.24 points, placing it in the good category nationwide. This index somewhat reflects the business community's recognition of the province's efforts in implementing effective administrative reforms and creating an increasingly equal business environment. This result is achieved through the continuous proactive, determined, and innovative efforts of Thua Thien Hue province in its leadership and management.

Currently, administrative procedure reform in the province basically meets and resolves administrative transactions for organizations and individuals effectively. State management agencies regularly review and simplify administrative procedures, systematize administrative procedures, shorten processing times, and review, control, and improve the quality of administrative procedures in all areas under their management authority. The one-door mechanism and inter-agency one-door mechanism are closely monitored, controlled, and enhanced in quality for all areas within the jurisdiction. The public disclosure of administrative procedures on the agency's electronic portal/information page and in the media is always emphasized.

Provincial Competitiveness Index: Thua Thien Hue achieves 69.24 points

10. Binh Dinh

The total PCI score of Binh Dinh in 2021 is 68.32 points, an increase of 5.14 points compared to 2020, and the highest score ever. 7 out of 10 indices increased compared to 2020, including: Legal and Order Index increased by 0.31 points; time cost increased by 0.21 points; transparency increased by 0.63 points; unofficial costs increased by 1.23 points; dynamism of provincial government increased by 1.08 points; business support services increased by 1.59 points, and the equality competitiveness index increased by 0.35 points. This result reflects the efforts and endeavors of government levels in administrative reform and facilitating the business and investment activities of enterprises.

There are many factors contributing to the increase in the province's PCI score, such as providing information on policy mechanisms, supporting business promotion, legal advice, business partner search, and business management training. Our province has performed this work very well, providing an adequate and timely supply of services in technology, trade promotion, market research, and legal advice, which has increased the business support services index the most.

Provincial Competitiveness Index: Binh Dinh achieves 68.32 points

11. Hanoi

Hanoi is ranked 10th (68.6 points) out of 63 provinces and cities; it is highly rated for infrastructure, time cost, and business support services. To strive for Hanoi's PCI to be in the group of localities with high rankings nationwide, departments, and districts effectively implement Action Program No. 14/CTr-UBND, dated January 19, 2021 of the Hanoi People's Committee. At the same time, focus on overcoming the decreasing component index, namely the 'Unofficial cost' index (ranked 29th/63, down 3 places). Additionally, maintain good rankings for component indices and criteria such as 'Labor training' index (ranked 1st/63) and 'Business support services' index (ranked 4th/63, up 9 places). Previously, according to the announcement by the Vietnam Chamber of Commerce and Industry on April 27, 2022, Hanoi continued to be among the top 10 provinces and cities nationwide in 2021. Specifically, the PCI index in 2021 of Hanoi ranked 10th/63, down 1 place compared to 2020 and 2019, up 14 places compared to 2015, up 41 places compared to 2012, belonging to the group of localities with good management quality.

Provincial Competitiveness Index: Hanoi achieves 68.60 points

12. Hải Dương

The remarkable point in the Provincial Competitiveness Index (PCI) 2021 ranking is the dramatic change in both points and rankings for Hải Dương. Specifically, Hải Dương has risen to the 13th position on the ranking, climbing 34 places from the previous year (in 2020, Hải Dương ranked 47th nationwide). Additionally, Hải Dương has moved from the middle position of localities with average management quality to the top of the group of 20 localities with quite good management quality; only 0.95 points away from the 10th-ranked locality (group with good management quality). Hải Dương is also one of the 10 localities assessed to have good infrastructure quality nationwide. Compared to 2020, the province's PCI index increased by 5.13 points, and its ranking rose by 34 places. This is the highest PCI ranking for Hải Dương in the past 17 years. Hải Dương is also one of the 10 localities evaluated to have good infrastructure quality nationwide.

Provincial Competitiveness Index: Hải Dương achieves 67.65 points

13. Cần Thơ

In 2021, the Provincial Competitiveness Index (PCI) of Cần Thơ ranked 12th out of 63 provinces and cities, and 2nd out of 13 provinces and cities in the Mekong Delta region. There were 5 out of 10 component indices that decreased, including market entry, transparency, time cost, equal competition, and labor training. To improve the PCI in 2022, along with many other comprehensive solutions, the city implemented the Project 'Survey and Evaluate Competitiveness at the Department, Board, Sector, and Local Levels (DDCI)'. This is not only an important tool to improve the component indices of PCI but also activates continuous innovation in the direction and administration of the city's government.

Information announced at the conference summarizing the 10 years of implementing Resolution No. 11-NQ/TU shows that Cần Thơ's PCI has improved significantly in recent years compared to 2012. The average PCI score over the past 10 years (2012-2021) is 63.55 points, ranking from 10th to 15th and falling into the group with good to quite good management quality. Specifically, Cần Thơ's PCI ranking in 2012 was 14th with 60.32 points; in 2015, it was 14th with 59.81 points. From 2016 to 2021, Cần Thơ consistently ranked from 10th to 12th nationwide. The results show that the PCI score of the city sometimes increases and sometimes decreases, but the amplitude is not significant and does not correspond to its position as a central locality in the Mekong Delta for services such as commerce, healthcare, education, etc.
Provincial Competitiveness Index: Cần Thơ achieves 68.06 points

14. Lâm Đồng

With 67.17 points, in 2021 Lam Dong rises to 15th place, climbing 8 spots in the national PCI ranking, only behind Hung Yen and Ho Chi Minh City in the strong category. Alongside the annual ranking of provinces and cities, the analysis report on Vietnam's business environment in 2021, the areas of improvement, and the expectations of the business community from governments at all levels to establish a favorable business environment; also, there is a separate program to analyze the impact of the COVID-19 pandemic in the second year on business activities and assess the prospects for recovery in Vietnam's new normal in the coming time.

Especially, Lam Dong province has established a Working Group to resolve requests and difficulties of businesses in Lam Dong province, led by Pham S, Vice Chairman of the Provincial People's Committee of Lam Dong as the Head of the Working Group. The two Deputies are Mr. Duong Quoc Anh - Director of the Investment Promotion and Trade, and Tourism Promotion Center (Deputy Head of the Standing Committee) and Mr. Le Binh Minh - Deputy Director of the Department of Planning and Investment. In addition, the Working Group also has 35 other members representing the leadership of Departments, Branches, and localities.

Provincial Competitiveness Index: Lam Dong achieves 67.17 points

Ranked 14th, Ho Chi Minh City remains in the group of localities with a relatively high PCI. Notably, the business support services index of Ho Chi Minh City has shown the most significant improvement among PCI evaluation indices this year, scoring 8.54 points, nearly 2 points higher than the previous year. Over the past years, although the PCI of Ho Chi Minh City has been increasing annually, the rate of increase has not been substantial. Analyzing the evaluation results of the Provincial Competitiveness Index (PCI) during the period 2016 - 2020 of Ho Chi Minh City shows that the PCI has increased in score but not significantly (an increase of 3.98 points in 5 years).

In 2020, among the 10 component indices of PCI (market entry cost index; transparency index; time cost index; business support services index; labor training index; land access index; unofficial cost index; equality competitiveness index; dynamic capacity index; legal framework index), there were up to 4 component indices that decreased compared to 2019. In particular, the transparency index only reached 5.68 points (the lowest from 2015 to now). Meanwhile, many other provinces and cities have shown a strong increase in scores in various indices, causing Ho Chi Minh City to be downgraded, dropping 6 places, from 8th (in 2016) to 14th (in 2020). Thus, in the past period, despite a slight increase in the competitiveness index, the PCI ranking of the City has still declined compared to many localities nationwide. Especially, the City is no longer among the top 5 localities with the highest PCI nationwide.

Provincial Competitiveness Index: HCMC achieves 67.50 points