LAI CHAU: THREE ‘GAPS” TO BE NARROWED

17 October 2017 

The Conference on the first day was chaired by Mr.Giang A Tinh – Deputy Chairman of Lai Chau PPC; Mr. DauAnh Tuan – Head of Legal Department/VCCIcum Director of PCI project; Mr. Hans-GeongJonek – Country Director, FNF; with the participation of guest speakers: Director of BacNinhInstitute for Socio-economic Development; Chairman of TuyenQuang SME Business Associationas well asother 140 representatives from provincial branches, departments and enterprise community in Lai Chau.

 

 

The goal of the conference was to support Lai Chau in improving its provincial governance to create a favorable business environment for enterprises, thereby contributing to poverty alleviation and promoting so-economic development, especially the private sector in the province.  More specific objectives were also set out, which include:

 

- Enhancing the role and capability of local business associations in promoting Lai Chau business environment and its provincial competitiveness

 

- Capacity building for staff of local authorities in the conduct of all activities to improve provincial business environment.

 

- Sharing information and good practices of the other provinces in improving provincial governance and regulatory quality.

 

- Sharing information and lessons learnt for business associations in local economic development.

 

 Accordingly, key contents delivered at the conference  emphasized on (i) the roles of local authorities and business associations in improving local business environment and strengthening local competitiveness; (ii) analyzing Lai Chau’s business environment from the perspective of Provincial Competitiveness Index (PCI); (iii) introducing best practices of improving business environment of other provinces that have similar conditions: BacNinh and TuyenQuang; and (iv) discussing difficulties and put forward solutions for improving Lai Chau’s business environment.

 

Overview of the Conference

 

Mr. DauAnh Tuan - Head of Legal Department of VCCI/ PCI Project Director, in his presentation at the conference, provided analyseson Lai Chau’s business environment from PCI perspective. He said “over the past time,Lai Chau hasbeen seen to have issued many policies and mechanisms in a bid to improve local business& investment environment, supporting its local business development. As a result of such efforts, some improvements have been observed: PCI scoresof many sub-indices have increased over the previous period. However, when compared with other provinces in the country, this change remains quite slow. Lai Chau scores 52.77 points in PCI 2015, ranking 61/63 cities and provinces.

 

Tuan added: to improve the business environment, enhancing the competitiveness of the province, Lai Chau need to narrow the three "gaps" between the government and business:  "gap in mutual trust", "gap in mentality/thinking" and "gap in decision-making speed." First, the government need to earn trust from businesses while the businesses should learn to put trust in the government. Similarly, about decision making speed, the businesses always wish to make decisions quickly while the government has no motivation to quickly resolve the (administrative)problems for businesses .Regarding mentality gap, we often see that the government officials have preconceived opinions about businesses’ “short-term minded” ways of doing business while the businesses normally blame the government on bureaucracy and corruption. If these gaps remain large, the costs of implementing administrative procedures would be huge.  Having said that, we would compare provinces using such three gaps: Where such gaps are narrowed, the business environment would be obviously better.” To conclude his presentation, Mr. ĐauAnh Tuan emphasized “Strengthening dialogue between businesses and governments is really needed", which was also discussed as the main theme of the conference.

 

The second part of the event was the Training course which was intended to focus more on providing knowledge and practical skills for government officials and business association members to apply in their daily working tasks. The training course agenda was therefore designed to include such contents as: (i) Attracting investment for provinces: what ways would work? impacts of investment attraction on economic development: lessons of local marketing; (ii) Consultation Policy & Business Dialogue: How to involve businesses in policy making and skills needed to do this; (iii) Strengthening businesses’ voice in attracting investment and improving provincial business environment; (Iv) Practice using PCI information and data which represent businesses’ perceptions on business environment to apply in their work of provincial government officials as well as businesses in dialogues between the government and businesses.

 

PCI Team

 






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The Provincial Competitiveness Index (PCI) Project

Legal Department | Vietnam Chamber of Commerce and Industry (VCCI)

9 Dao Duy Anh St, Hanoi | Tel: (84-24) 3577 1460, 3574 6983 | Fax: (84-24) 3577 1459, 3577 0632 | Email: pci@vcci.com.vn & vcci.pci@gmail.com