(VOVworld) - Vietnam’s Provincial Competitiveness Index (PCI) for 2015 has been announced. The index is considered one of the most accurate measures of local authorities’ efforts to improve the provincial investment environment and competitiveness.

Representatives of top 5 provinces received PCI 2015 certification. (Photo: hanoitimes.com.vn)

In this year’s ranking, Vinh Phuc reached, for the first time, the elite group of the best-governed provinces and cities in Vietnam with the highest investment attraction. This is a breakthrough for Vinh Phuc.

In 2012, Vinh Phuc ranked 43 in the list but one year later it jumped 17 places and in 2015 was among the top localities with initiatives in administrative reform and improving management quality.

US Ambassador to Vietnam Ted Osius and VCCI Chairman Vu Tien Loc present a medal recording Vinh Phuc’s PCI  best performance in 2015. (Photo: Nguyen Luong)

Duong Trong Khang, Deputy President of the provincial Business Association, says Vinh Phuc authorities work with the business community to promptly solve their problems and facilitate their operations.
He said “to make the local investment environment more attractive, Vinh Phuc authorities and relevant agencies have always paid attention to businesses and listened to their opinions. We do a survey of 90 enterprises every quarter to learn their problems, needs, and the quality of service offered by our state agencies in regard of land policy and administrative procedures.”

Thai Nguyen is another highlight in improving its business climate, moving from 57 in 2011 to 7 in this year’s ranking. Nhu Van Tam, Vice Chairman of the provincial People’s Committee, says that from the PCI the local administration has become aware of weaknesses that need to be reformed.

Tam noted that last year, after attaining the 8^th position in the 2014 PCI list, Thai Nguyen’s economy achieved a remarkable growth of 25% with a sharp increase in foreign direct investment capital.

In addition to the Samsung group, Thai Nguyen has more than 80 investment projects bringing its total registered capital to 7.1 billion USD, according to Tam.

“To date Samsung has invested 6 billion USD in Thai Nguyen, 5 billion of which has been disbursed. The group employs 70,000 people, creating a breakthrough in the province’s economic growth. We are applying the single door mechanism and the inter-sector mechanism and perform a yearly review. Our plan is to simplify administrative procedures to provide the best possible conditions for enterprises,” Tam said.

The PCI 2015 report provides an overview of Vietnam’s business environment, which has recorded achievements in administrative reform and a decrease in wait times for registering a business.

An overview of Da Nang City which topped the PCI for the third consecutive year in 2015. (Photo: Gia Vi/VNS)

FDI companies agree that Vietnam’s business environment is relatively safe but less attractive than competitors in terms of informal fees and the quality of public services.

According to the report, although FDI enterprises are a major factor in creating employment, industrial output, and exports, Vietnam hasn’t taken full advantage of the FDI flow. Cooperation between domestic and foreign investors falls short of the potential.