The Provincial Competitiveness Index (PCI) is seen as one of the most important and objective indicators to measure the quality of local social and economic governance. In its ongoing efforts to improve this ranking, Vinh Phuc has adopted numerous comprehensive measures in 2024 and maintained its Top 30 position in governance.
Improving the public administration service quality is a key solution for Vinh Phuc to boost the PCI ranking
According to the 2024 Provincial Competitiveness Index (PCI) report released by the Vietnam Chamber of Commerce and Industry (VCCI) on May 6, 2025, Vinh Phuc scored 68.29 points and ranked 25th out of 63 provinces and cities, dropping 10 places compared to its 2023 ranking.
Among the 10 PCI subindices, only three showed improvements: Transparency and Access to Information, Business Support Services and Labor Training. The other seven subindices including Market Entry Costs; Land Access and Security of Tenure; Time Costs and Regulatory Compliance; Informal Charges; Fair Competition; Proactivity of the Local Government; and Legal Institutions, experienced declines in both scores and rankings.
The weak performance was attributed to the underwhelming quality of advisory and proposed solutions to business-related matters. Companies still needed to spend a long time dealing with administrative procedures, business registration, social insurance code registration and corporate invoice registration. In addition, the proactivity and leadership of local authorities in addressing bottlenecks showed little improvement. Government-business dialogues remained ineffective and failed to attract sufficient business engagement. Some businesses continued to face challenges in accessing information regarding socioeconomic development plans and available business support services.
The year 2024 marked the 20th edition of the PCI in Vietnam and the final coverage of 63 provinces and cities since they will be merged under Government Resolution 74/NQ-CP on restructuring of administrative boundaries and establishment of a two-tier local government model.
The release of annual PCI reports by VCCI over the past two decades has aimed to foster a more business-friendly environment. It has also portrayed a vivid picture of the business climate of provinces and cities in particular and of Vietnam in general across provinces and cities in Vietnam, reflecting a diverse range of views from both domestic and international investors, highlighting effective reforms as well as ongoing business challenges.
Looking back on its 20-year PCI journey, Vinh Phuc ranked Top 10 in nine years, Top 10-20 in seven years and Top 20-50 in four years.
An official of the Provincial People’s Committee emphasized that a new phase of development will begin following the planned merger of Vinh Phuc, Phu Tho and Hoa Binh provinces into a new province named Phu Tho. Therefore, PCI 2024 and earlier will serve as a critical foundation for the new province to work out action programs and practical solutions to improve the investment environment, enhance provincial competitiveness, and lay the groundwork for entering a new era of national advancement.
By Huong Hau, Vietnam Business Forum
Vietnamese
