Ha Noi remains in VN’s top 10 business destination for third straight year
VGP – Ha Noi continues to be the most competitive locality in Viet Nam, topping the country's Provincial Competitiveness Index (PCI) 2019, which was released on March 5.
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Ha Noi remained firm among the top 10 business-friendly localities in Viet Nam for two consecutive years, after the city’s first inclusion in the top 10 of Viet Nam’s provincial competitiveness index (PCI) ranking in 2018.
Although Ha Noi's ranking stayed unchanged at ninth, its PCI score has improved from 65.4 to 68.8, showcasing strong efforts from the local authorities towards administrative reform and creating a favorable business environment for enterprises.
Among the 10 PCI sub-indices, Ha Noi has the highest score in Entry Costs, which evaluates entry costs for business startups, at 7.98 points out of 10, and the lowest at 5.39 in Policy Bias, an indicator assessing the possibility of crowding out of private activity from policy biases toward state, foreign or connected firms.
The northern province of Quang Ninh remains the most economically competitive province in Viet Nam for the third consecutive year, followed by Dong Thap and Vinh Long in the Mekong Delta.
The first and second positions remained unchanged from the previous year while Vinh Long made a strong rise from number eight to number three in 2019.
In addition, Bac Ninh, a major industrial center in northern Viet Nam, made a big jump to fourth position from number 15 a year earlier while the southern economic hub of Ho Chi Minh City fell out of the top ten to number 14.
Da Nang remained in the 10 best-performing localities, ranking 5th position.
The PCI is designed to assess the ease of doing business, economic governance, and administrative reform efforts by Viet Nam’s provincial and city governments in order to promote private sector development, according to VCCI.
“The PCI augments the collective voice of private entrepreneurs in Viet Nam regarding economic governance in their province and the country,” it said.
The report, jointly launched online for the first time today by the Viet Nam Chamber of Commerce and Industry (VCCI) and the U.S. Agency for International Development (USAID), has been produced annually since 2005 to assess the ease of doing business, economic governance, and administrative reform efforts by the provincial and city governments in Viet Nam in order to promote the development of the private sector.
The 2015 PCI survey was carried out on a sample size of 8,335 randomly selected enterprises and had a response rate of about 60%, excluding closed businesses and firms with incorrect addresses.
By Vien Nhu
