Hanoi has risen 10 rankings on 2016 PCI chart
14 March 2017
Da Nang has been still in the top of 2016 provincial competitiveness index ranking for the fourth consecutive year (PCI 2016) that was announced on March 14 morning. Meanwhile, Hanoi for the first time in many years has exceeded the threshold of 60 points, entered the group of good quality, has risen to 14/63 provinces and cities.
This year also marked the return of Binh Duong (63.57 points) and Vinh Long (62.76 points) among the best performing provinces and cities with Lao Cai (63.49 points). Other provinces and cities such as Thai Nguyen, HCMC, Vinh Phuc and Quang Nam also received positive reviews from private enterprises on their efforts to improve the business environment.
According to Dau Anh Tuan, Chairman of the VCCI Legislation Department, remarkable in PCI 2016 is that the last-ranked provinces have made impressive reform efforts. The gap between the highest and lowest provinces was reduced to just 17 points, a record low in the past 12 years. In addition, there is a tendency to improve the PCI scores of the five TPs.
Hanoi for the first time in many years has exceeded the threshold of 60 points, entered the group of good operating quality and ranked 14th out of 63 provinces and cities. This position improved ten places compared to the PCI rankings last year. Ho Chi Minh City ranks 8th with 61.72 points, down 2 levels compared to last year.
The areas under VCCI representatives, provincial governments have improved significantly over 2015 as informal, labor training, fair competition and business registration. However, Tuan said that the burdens of administrative procedures, unfavorable land access and unsafe legal environment remain a constraint to local firms.
The results of the PCI 2016 survey reflect the signs of prosperity for domestic private firms. Surveyed in the past year, 65% of businesses are profitable, the highest level in five years. For the first time in 12 years, the average size of enterprises has risen to the highest level of 18.1 billion VND, twice as much as in 2006. The proportion of enterprises employing workers has also increased. From 12% in 2015 to 13% in 2016. Businesses continue to be optimistic about business prospects with 48% of businesses expected to expand business over the next two years, equivalent to the previous year.
Translated by Anh Kiet