Improving PCI for Sustainable Growth

Determined to make strong growth in PCI scores and rankings, Thai Nguyen province has launched many drastic solutions, engaged by the whole political system, to create a truly open, transparent, dynamic and favorable business environment for all economic sectors, attract investment flows, support businesses, and ensure sustainable socioeconomic development.

Raising the Provincial Competitiveness Index (PCI) is considered one of the important solutions of the province to achieve sustainable growth. In 2020, Thai Nguyen's PCI scored 66.56 points, ranking 11th out of 63 provinces and cities in the country, one place higher than in 2019 and leading northern mountainous provinces.

According to the Vietnam Chamber of Commerce and Industry (VCCI) and related agencies, Thai Nguyen province has six out of 10 component indices that advanced in score. One index gained over 8 points and four scored above 7 points. The highest index was Market Entry with 8.35 points.

Although Thai Nguyen climbed one place in PCI rankings, its score fell by 1.15 points from 2019. However, this decline was due to the COVID-19 pandemic. Notably, among component indicators, time cost climbed strongly to 7.70 points and advanced six places. This upward trend has been seen in recent years, showing its effective efforts in administrative reform. Improving the Time Cost Index for settlement of administrative procedures provided by governmental agencies is a great effort in business dialogues deployed to district and sectoral levels.

Provincial models such as the Public Administration Services Center, the Legal Assistance Consulting Center for Businesses and the Investment Promotion Center are really useful tools and implemented very successfully. Currently, enhancing PCI is further spreading the "Business Coffee" Model and DCCI. Administrative reform, the single-window administrative service, increased business support and shorter time for investment certification and business registration have helped speed up project implementation. When investors encountered difficulties and problems in administrative procedures, the province requested relevant agencies to urgently coordinate with them for the solution. Their projects, after being put into operation, have brought positive results, created trust and good effects for individuals and businesses to explore and invest in the province.

Thai Nguyen still has a lot of room for reform and growth but it needs to work out breakthrough stages. And from the perspective of entrepreneurs, land and business premises are a very important input factor. However, this is a complex and difficult area for most reform work. Therefore, there is a need for creativity and innovation in these complex reform areas. In addition, before, during and after investment promotion, the provincial government should closely follow investors, dedicatedly solve problems and provide support services for them. If well served, they can work better.

One of the other important factors is the digital transformation for better administrative reform and higher PCI. Currently, all qualified public administrative procedures have been provided at Level 4 on the provincial online public service gateway. The effective functioning of the Provincial Intelligent Operation Center (IOC), digital transformation in all localities and agencies in the province, and the fulfillment of all tasks on technology platforms will be the shortest and most effective way to help socioeconomic development and raise PCI of Thai Nguyen province. Realizing the “dual goal” initiated by the Government - effectively fighting the pandemic and developing the economy, improving the business environment and increasing business satisfaction become more important than ever.

To further improve the open investment environment, support enterprises to expand their business operations and raise the PCI Index in the coming time, the Provincial People’s Committee told leaders of provincial and local agencies to base on their jurisdiction to closely monitor and improve 10 PCI component indices to actively devise specific and appropriate action plans; clearly assign responsibilities of agency leaders and units to check and press on plan implementation. Agency leaders thoroughly grasp, direct and administer objectives and tasks; and regularly monitor progress to have timely and flexible solutions and propose effective management solutions to the province.

By Vietnam Business Forum