Vietnam: Provincial Competitiveness Index (PCI) Rankings 2022

Vietnam: Quang Ninh secures the top position in the top 10 provinces for the 6th consecutive year.

WHAT IS THE PROVINCIAL COMPETITIVENESS INDEX (PCI)?

The PCI Index is conducted by the Vietnam Chamber of Commerce and Industry (VCCI) with support from the United States Agency for International Development (USAID) in Vietnam. The PCI index is developed by a group of experts both domestically and internationally from VCCI.

The PCI index is the abbreviation for the Provincial Competitiveness Index, which measures and evaluates the economic governance quality, the friendliness and accessibility of the business environment, and the administrative reform efforts of the provinces and cities in Vietnam, thus fostering the development of the private economic sector.

Built from the most extensive and meticulously conducted annual enterprise survey data in Vietnam today, the PCI index is the "collective voice" of the private business community about the business environment in the provinces and cities of Vietnam.

The PCI index does not aim for pure scientific research or to praise or criticize the provinces with high or low PCI scores. Instead, the PCI index seeks to understand and explain why certain provinces and cities surpass others in private economic development, job creation, and economic growth.

With annually published results and a public dataset available on the project’s website (www.pcivietnam.vn), this is a useful reference source for provincial and city leaders, as well as policymakers in general, to identify governance bottlenecks and choose suitable solutions to carry out the most effective economic governance reforms.

As of the most recent methodology update in 2017, the PCI index includes 10 component indices covering key areas of economic governance related to the development of businesses in the provinces and cities.

A locality is considered to have good governance quality when it has:

1. Low market entry costs;
2. Easy access to land and stable land use;
3. Transparent business environment and publicized business information;
4. Low informal costs;
5. Quick inspection, examination, and implementation of regulations and administrative procedures;
6. Fair competitive environment;
7. Dynamic and creative provincial government in solving problems for businesses;
8. High-quality enterprise development support services;
9. Good labor training policies;
10. Fair, effective dispute resolution procedures, and maintained security and order.

With the latest methodology adjustment in 2021, 141 criteria were used to build the PCI. Detailed criteria of each component index can be found in the Data section.

NEW HIGHLIGHTS OF PCI 2022

A major change in the PCI 2022 report is the first-time introduction and publication of the Provincial Green Index (PGI) by VCCI, USAID, and private sector partners.

This index evaluates and ranks environmentally friendly localities from the perspective of business practices such as the application of environment-friendly technology by local enterprises, management and interaction with the environment by enterprises, the attention and readiness to invest in environmental issues by local governments, and many other important environmental issues.

By building and publishing the Green Index, VCCI and USAID aim to encourage provinces and cities in Vietnam to pay more attention to economic development aligned with environmental protection, promptly providing information to support provincial and city governments in policy-making related to investment and the environment, promoting the construction of an eco-friendly business ecosystem, steering conscious investors towards environmental protection, and fostering more green and environmentally friendly projects.

According to VCCI, the green transition journey of Vietnam's economy and business environment is not an easy one, but it is hoped to be a bright journey.

Though facing numerous difficulties and challenges in 2023, the business community remains hopeful that Vietnam will quickly overcome these to aim for a bright future ahead.

We hope that Vietnam remains steadfast in overcoming the global economic storm, that efforts to reform the business environment continue to be maintained and strengthened, and that the Vietnamese business community continues to achieve many more successes in the future.

According to the Government's electronic information portal

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