In 2019, Binh Duong province ranked No. 13 (down seven places) in the PCI rankings, leading the Southeast region and standing among best performers in the country.
According to the release by the Vietnam Chamber of Commerce and Industry (VCCI), the Provincial Competitiveness Index (PCI) 2019 of Binh Duong province dropped seven places in the rankings although its score rose by 1.29 points, showing the efforts of other provinces and cities in improving their governance quality.
Rising component indices
Regarding the component indexes, six increased (accounting for 50% of the weight) and four declined (50% of the weight). The indices that increased over 2018 include:
Access to land: 7.67 points (up 0.55 points), the highest score in five years. Seven out of 10 component indicators advanced to make it ranked No. 6 out of 63 provinces and cities (6 places higher). The national median was 6.94 points.
The informal charge: 6.11 points (up 0.33 points). Six out of nine component indicators gained to rank No. 36 (4 places higher). The national median was 6.2 points.
Labor policy: 7.41 points (up 0.57 points), highest in five years. Seven out of 11 component indicators grew up to rank No. 6 (9 places higher). The national median was 6.7 points.
Time costs for settling administrative procedures: 6.89 points (up 0.14 points). Six out of 11 component indicators looked up to rank No. 30 (8 places higher). The national median was 6.87 points. With ongoing efforts of branches and levels to reduce the time and appearances to solve administrative procedures and review to eradicate replicated procedures, this index improved over 2019.
Law and order: 6.14 points (up 0.36 points), ranked No. 48 (6 places higher). The national median was 6.53 points, with 15 out of 17 component indicators picked up.
Policy bias: 5.78 points (up 0.47 points), ranked No. 49 (7 places lower). The national median was 6.35 points. 11 out of 14 component indicators increased. The share of respondents felt more equal in some indicators such as access to credit loans, administrative procedures, obtaining contracts from government agencies while the rate of companies complaining about priority to FDI enterprises in solving difficulties and problems over private enterprises fell.
Compared to 2018, Binh Duong province’s PCI 2019 dipped in four indices:
- Entry cost: 6.83 points (down 1 point), lowest in five years. Seven out of 10 component indicators slipped to rank No. 50 (down 36 places). The national median was 7.24 points.
- Transparency and access to information: 6.68 points (down 0.12 points). Five out of 12 component indicators shed to rank No. 30 (down 24 places). The national median was 6.64 points.
- Proactivity of the provincial government: 6.56 points (down 0.29 points). Seven out of nine component indicators slid, ranked No. 24 (down 21 places). The national median was 6.26 points.
- Business support services: 6.57 points (down 0.03 points). 11 out of 25 component indicators sank ranked No. 21 (up two places). The national median was 6.17 points.
Topping infrastructure index
In addition, according to a VCCI survey, infrastructure continued to be the strength of Binh Duong province as it maintained its leading position and stood out from other provinces. The Infrastructure Index is not included into the PCI Index as the infrastructure development is largely outside the jurisdiction of local authorities. Survey results continued to show a strong correlation between governance quality and infrastructure. In general, well-governed localities tend to have higher quality infrastructure. According to VCCI, Binh Duong has always been a leader in this indicator because it has focused on developing a synchronous transport system, building industrial zone infrastructure together with urbanization development to create a driving force for socioeconomic development since its re-establishment in 1997.
Source: Vietnam Business Forum