Hai Duong Continues to Redouble Efforts for Higher PCI

4:11:39 PM | 3/9/2015

According to VCCI and USAID announcement last April, Hai Duong advanced 10 rungs in the Provincial Competitiveness Index (PCI), ranking 31st in 63 Vietnamese cities and provinces and the 6th among 11 cities and provinces in the Red River Delta.
Right diagnosis
Improving management from Average in 2013 to Fair in Vietnam PCI, Hai Duong province has attained the best record since 2009. This is due to the comprehensive application of business environment, economic management and enterprise development.
Among improvements of Hai Duong PCI in 2014, it is most notably the increase in transparency (from 4.64 to 5.83), labour training (from 5.61 to 6.18) and other indexes such as market integration and business assistance.
It is safe to say that Hai Duong has performed beautifully in indexes with timely and appropriate policies. In a press interview nearly a year ago, Mr Nguyen Manh Hien, Chairman of Hai Duong People’s Committee, pointed out the cause of low ranking of the province in 2013 (41st in 63 localities). It was due to global economic recession that investors cut the number of projects invested in Hai Duong, but more importantly the failure in administrative reform causing delay in land clearance, shortage in infrastructure and human resources and failure in removing business hurdles.
The “right diagnosis” helps Hai Duong leadership find the “right medicine” and as a result, Hai Duong PCI made a breakthrough in 2014.
Remaining challenges
At the 5th meeting of the Steering Committee of Economic Zones and industrial parks, Ministry of Planning and Investment warned some industrial parks (IZs) of possible cancellation for inefficiency. Those are IZs with low percentage of project occupation, failure in land-use payment or in infrastructure investment, changing investors and land-use right. Unfortunately, two Hai Duong IZs (Cong Hoa-Chi Linh and Cam Dien-Luong Dien) are in the list.
On July 21, the Government Inspector disclosed the conclusion of Hai Duong management on investment projects in 2002-2012. It shows that several IZ investors have rented land beyond their competence and failed in payments to the State. Hai Duong People’s Committee failed to comply with laws or ask for permission from Ministry of Construction on the detailed planning of Nam Sach and Dai An IZs.
Those shortcomings are due to eagerness for increasing PCI without proper preparation. The mistakes have been pointed out. It now depends on joint efforts of Hai Duong leadership. At the seminar “Increasing Hai Duong competitiveness 2014” in October 2014, Mr Vuong Duc Sang, Director of Hai Duong Department of Planning and Investment, highlighted the Action Plan of the province on improvement of investment environment, upgrading PCI to Top 30 of the best PCI in 2015. The achievement of the target rests with the ability and will of the provincial leadership.