PCI 2022: The mission of "assessing the quality of economic governance"

Overview of the 2022 PCI rankings launching ceremony

Mr. Pham Tan Cong, President of the Vietnam Chamber of Commerce and Industry (VCCI), stated at the 2022 PCI rankings launching ceremony that the annual release of the PCI report has become a tradition over the past many years, with 2022 marking the 18th consecutive year of PCI implementation.

"That represents 18 years of PCI's unshakable dedication to the purpose of evaluating the quality of economic governance in order to encourage the development of enterprises and the country's economy. That is 18 years of PCI morphing into the most reputable tool for assessing the quality of public administration in the country and throughout the world. For provincial officials, PCI represents their goal, listening, and attitude of collaboration with the business community," emphasized VCCI President.

Mr. Pham Tan Cong, President of the Vietnam Chamber of Commerce and Industry (VCCI.

The 2022 PCI report, according to Mr. Pham Tan Cong, was done in the context of the business community confronting various obstacles, challenges, and possibilities. According to the General Statistics Office's Q1 2023 socio-economic report, the GDP growth rate in the first quarter of 2023 was just 3.32% compared to the same time in 2022. This is the second-lowest quarterly growth rate between 2011 and 2023.

Notably, company development in Q1/2023 is also reason for concern, with the number of organizations withdrawing from the market reaching 60.2 thousand, up 17.4% from the same time in 2022. Meanwhile, the number of new and returning businesses was smaller, at only 57 thousand. In Q1/2023, around 20.1 thousand firms withdrew from the market on a monthly basis.

Mr. Pham Tan Cong stated that in such harsh conditions, the responsibility of local governments would be more focused on providing a favorable business climate to assist firms in overcoming problems, recovering, and increasing steadily. As a result, "hope" is the theme of this year's PCI announcement event.

The PCI results identify possible areas for reform, and suggestions are offered. The PCI, as an indicator of action, pushes municipalities to enhance the quality of economic governance based on evidence. To close the gap, the PCI also disseminates many beneficial concepts and practices from provinces that are "stars" of reform to other places around the country.

One of the areas where expectations have not been reached is the continuance of hassles and barriers in several administrative procedures. The most cumbersome administrative operations, in the opinion of enterprises, are taxes/fees, land clearance, social insurance, fire prevention and fighting, and building.

Second, the quality of policy enforcement at the grassroots level remains severely limit  ed, necessitating greater effort by communities to achieve continuous increases in operational quality.

Third, land access remains a substantial impediment for many enterprises, causing many company plans to be canceled or postponed. This issue has already been noted in PCI reports, where the problem that companies must continue to tackle is the blockage status, and the processing time for land-related papers frequently exceeds the standards.

The President of VCCI congratulates the top locations this year on the outcomes of PCI 2022. For the sixth year in a row, Quang Ninh has held the top spot. Bac Giang deserves congratulations for moving up to second place. Congratulations to Hai Phong, Ba Ria-Vung Tau, and Dong Thap for continuing to implement good reforms. Congratulations to Thua Thien Hue, Bac Ninh, Vinh Phuc, Da Nang, and Long An for making the top ten provinces and cities. Congratulations to many other communities around the country that worked hard in a year when provincial economic management faced several problems.

For the first time, VCCI, USAID, and commercial partners introduced and issued the Provincial Green Index (PGI) in this year's report. This is a set of indices that evaluate and rank environmentally friendly localities based on business realities, such as the degree of application of environmentally friendly technology by businesses in the area, the level of management and behavior of businesses toward the environment, the level of attention and willingness of the local government to invest in environmental issues, and a variety of other important environmental issues. For the first time, the President of VCCI congratulates the top three provinces in the PGI, Tra Vinh, Lang Son, and Bac Ninh.

Ms. Aler Grubbs, Director of the United States Agency for International Development in Vietnam, stated at the Announcement Ceremony that the 2022 PCI is an economic measure for provinces and cities to have a detailed view of local improvements in administrative reform procedures.

Ms. Aler Grubbs, Director of the United States Agency for International Development in Vietnam

Ms. Aler Grubbs noted that this demonstrates the special efforts of the Government and agencies. This is the first time a provincial-level green index (PGI) has been announced, which is an important tool for evaluating the effectiveness of authorities in environmental protection.

"Especially now, environmental issues are shifting towards a green economy, and Vietnam is the first country to have this index for provinces. Accessing green growth resources has a significant impact on businesses and the economy, and this is the driving force for Vietnam's sustainable development and committed goals," said the Director of the United States Agency for International Development in Vietnam.