PCI Improvement Must Be Substantive

Improving the Provincial Competitiveness Index (PCI) is always considered a key solution for Binh Duong province to attract more investment capital, boost economic development, enhance state administration and motivate innovation. 

More consistent solutions needed

Binh Duong always strives to raise the PCI Index to maintain its competitive advantages and attract investment capital, thus reaffirming its position among the best business environments in Vietnam.

Binh Duong province scored 66 points on the PCI Index in 2023, nearly 1 point higher than in 2022. Six advancing subindices included Market entry costs, Proactivity of provincial leadership, Labor and training, Legal institutions, Time costs and Business support policy. Four declining subindices were Land access, Transparency, Informal charges and Policy bias.

Seven out of 10 subindices were lower than the national median (accounting for 40% of the weight), showing that the province needs to have consistent solutions to further improve administration, ameliorate the business environment and motivate businesses to pursue sustainable development.

Resolute innovations for businesses and investors

Chairman of the Provincial People's Committee Vo Van Minh emphasized that raising the PCI Index ranking is not to "chase" higher rankings but to achieve real improvement. This is seen as a breakthrough to improve the business environment, enhance competitiveness, promote economic growth and meet public and business satisfaction. To accomplish these goals, the province adopted many key tasks and solutions.

Specifically, the provincial government will continue to increase dialogues and grasp difficulties and obstacles faced by businesses to promptly resolve them with clear and consistent policies. It will pay attention to the role and voice of the community and business associations in policymaking and policy enforcement monitoring and care about the fairness and equality of carrying out support policies. Besides, the province will focus on investing in infrastructure development, upgrading key traffic routes, developing modern logistics systems, helping businesses easily connect with provinces, cities and seaports; and aim to develop modern, sustainable industrial parks and attract green high-tech manufacturers. Binh Duong will expand access to capital for businesses by connecting them with credit institutions and development support funds; raise the quality of human resources and propose policies to draw high-tech workers, domestic and international experts to work the locality; establish legal consulting, support and trade promotion centers to help businesses develop more effectively; strengthen administrative reform and digital transformation, aiming to settle all administrative procedures in the electronic environment, create a favorable, equal, transparent investment and business environment, and encourage innovation. In particular, the province will also expand communications about the importance of PCI improvement for key forces such as civil servants and the business community.

Sharpening competitiveness requires the resolution of provincial leaders and the engagement of all agencies and localities as well. Only when the entire system takes part will the business environment truly be better and create strong development momentum for businesses and the economy.

Amid increasingly vibrant economic integration, localities across the country are always determined to work hard for a better PCI Index; therefore, Binh Duong needs to make even more efforts. With its existing strengths and determination for a more enabling investment climate, we believe that Binh Duong will continue to affirm its role as an ideal destination for businesses and investors.

By Han Luong, Vietnam Business Forum