USAID-supported Vietnam Provincial Competitiveness Index Released

Monday, December 08, 2008

HANOI, December 11, 2008 – Da Nang province edged out defending leader Binh Duong to take the top ranking in the 2008 Vietnam Provincial Competitiveness Index (PCI) released today in Hanoi.  Binh Duong was the top PCI province for the past three years ahead of Da Nang, which had ranked second in previous years.

Developed by the U.S. Agency for International Development's Vietnam Competitiveness Initiative (VNCI) and the Vietnam Chamber of Commerce and Industry (VCCI), the PCI is now in its fourth year.  It measures economic governance based on each province’s business environment for private-sector development.

The 2008 PCI report was released this morning in a ceremony chaired by U.S. Ambassador Michael Michalak and VCCI Chairman Dr. Vu Tien Loc.  This edition reflects the candid input of more than 7,820 Vietnamese entrepreneurs and managers of small and medium enterprises across 64 provinces.  “PCI provides feedback and guidance from the business community about how government can better support business development, job creation, and trade and investment – all of which help raise the standard of living for all citizens,” said Ambassador Michalak.

The report notes that waiting periods to register a business are at an all-time low and that more respondents in provinces have received formal Land Use Rights Certificates.  In addition, provincial legal gazettes – many of them now online -- are making it easier for businesses to access the information they need.  The report also indicates that the number of business disputes resolved through Provincial Economic Courts has nearly doubled.  The report shows that better-governed provinces are able to use their resources more efficiently and influence business performance and income in the future.  This year’s report also introduces the PCI Infrastructure Index, which assesses provincial infrastructure quality.

“We congratulate the top performing provinces in this year’s PCI ranking. In addition, we strongly appreciate the reform efforts of other provinces, who acquired valuable experience and the motivation to further improve their investment environments,” said Chairman Vu Tien Loc of VCCI.

Over the past year, more than 40 provinces and state agencies have used the PCI to engage in public-private dialogue and analysis with local communities to better understand the competitive factors that drive economic growth.  Investors use the index to base their decisions about new business ventures.

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