The business environment has plenty of room for reform.

The annual report of the Provincial Competitiveness Index (PCI) in 2019 continues to honor Quang Ninh for the third consecutive year leading the ranking with 73.4 / 100 points. Dong Thap was second with 72.1 points, Vinh Long was third with 71.3 points, and Bac Ninh was fourth with 70.79 points.

The capital of Hanoi ranked ninth in the ranking with 68.8 points, while Ho Chi Minh City ranked fourteenth with 67.16 points. The last group are localities such as Dak Nong, Ha Giang, Bac Kan, Lai Chau, …

The PCI 2019 report shows clear changes in the business environment in all locations in the country. The dynamism and creativity of the provincial government have increased, the work of solving problems and difficulties for companies has improved considerably. The business environment is more equitable, companies have more favorable access to information, legal institutions, reduce the burden of unofficial costs, administrative procedures, …

Quang Ninh leads the PCI ranking for the third consecutive year

The most impressive improvements are in the areas of business registration, access to land, and unofficial cost cuts, as well as the burden of compliance costs. The time for business registration procedures continues to decrease and is reforming in many localities, making access to land easier and more transparent.

This is the third year in a row that unofficial costs have decreased, whereas before there was only an increase. The decrease from 66% in the years 2015-2016 to 53%. This is thanks to the transparent disclosure of local authorities combined with the effective application of information technology. At the same time, administrative procedures also decreased. The legal framework for dispute resolution is improved, with 50% of companies participating in the investigation saying they brought cases to court, compared to 36% in 2018.

The companies said the difficulties that arose were resolved quickly and easily. Discrimination between private and state companies and FDI tends to be more equal.

The quality of infrastructure, such as transportation, electricity, and the Internet, has received the satisfaction of many companies in each locality, including companies with foreign investment (FDI).

Clearly, provincial economic management has been renewed and improved in the last 15 years of conducting PCI surveys. If in 2006 the locality had the lowest PCI score of 36/100 points, in 2019 the lowest score would be 60/100.

Even so, the space for reform still has a large space for local governments. According to companies, the most problematic areas for them are land, taxes and social security. The rate of companies that implement construction projects that are hampered by administrative procedures, land and the environment is high, representing 52%, which is equivalent to the difficulties in selling goods. The percentage of companies that have to pay unofficial expenses, although they have fallen, is still high, more than 50%. Similarly, the percentage of companies that have to negotiate with tax officials has fallen from 53.2% in 2018 to 47.1% in 2019, but it is still high.

Many companies said they had to have a “relationship” to obtain information, negotiate tax rates, and predict the implementation of government policies.

The PCI Index has been jointly developed by VCCI and USAID since 2005 to assess the quality of economic governance, the level of ease and friendliness of the business environment, and the administrative reform efforts of provincial governments. , a city in Vietnam, thus promoting the development of the private sector.

The 2019 PCI report is based on feedback from nearly 12,500 companies, including some 11,000 private companies operating in 63 provinces and cities, and more than 1,500 foreign-invested companies (FDI). They are operating in 21 locations in Vietnam.

Trần Thủy