Binh Duong previously ranked the first in the PCI list for three consecutive years, while Danang only stood in second place, reported the PCI 2008, adding that Vinh Phuc, Vinh Long, Dong Thap and Long An provinces occupy the following positions, respectively.
Northern Dien Bien stands at the bottom, replacing Dak Nong. Above Dien Bien are Bac Kan and Bac Lieu provinces.
Notably, Vietnam’s two economic locomotives of Hanoi and Ho Chi Minh City disappointed the business community, falling from 27th place last year to 31st, and from 10th position to 13th, respectively, showed the index.
The PCI 2008 partly reflects the dull economic panorama this year. The number of provinces which are listed as having very good economic management quality is less than last year while the number of localities with low economic management quality is higher. The group of provinces with low competitiveness indexes has increased from four to six members.
Reductions of points occurred most often in the two fields of labor training and policies to develop the private economic sector, reflecting businesses’ displeasure with public service quality and the administration of local leaders.
The PCI 2008 report was made from survey on over 7,820 businessmen and managers from small- and medium-sized enterprises (SMEs) in all 64 provinces and cities nationwide.
The annual PCI survey was part of the project "Improving Vietnam’s Competitiveness Capacity," sponsored by the U.S. Agency for International Development (USAID), which has been carried out since 2005, aiming to assess economic development based on the business environment for the private sector in provinces and cities.
The PCI takes into account ten sub-indices that capture key elements of the local business environment that are directly influenced by the actions and attitudes of provincial authorities. These include input costs, pro-activity of local leadership, labor training, transparency and access to information, state sector bias, private sector development services, land access and security of tenure, legal institutions, informal charges and time cost of regulatory compliance.
Over the past few years, over 40 provinces and cities have used PCI to analyze economic conditions and organize public-private dialogues, thus boosting economic growth. Investors also used this index to made decisions on their new business plans, said Vu Tien Loc, Chairman of the VCCI. (Local sources)
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