Focusing on improving low scoring indicators

ĐBP - According to the recent results announced by the Vietnam Chamber of Commerce and Industry (VCCI), the Provincial Competitiveness Index (PCI) 2024 score of Điện Biên province does not rank in the top 30 provinces and cities nationwide.

The PCI 2024 score of the province is 67.77 points (increased by 0.9 points), ranking 32nd out of 63 provinces and cities across the country, a drop of 1 position compared to the PCI 2023; it ranks 5th out of 14 provinces in the Northern Midlands and Mountains.

The analysis of 10 component indicators reveals the following: 6 out of 10 indicators increased points and rankings; 4 out of 10 indicators decreased points and rankings. Specific indicators that decreased include: Informal costs dropped 0.24 points and ranked 47 places lower; Fair competition decreased 0.14 points and dropped 8 ranks; Business support policy decreased 0.37 points and dropped 30 ranks; Legal institutions & Public Security decreased 0.69 points and dropped 35 places.

The Informal Costs index reached 6.39 points, ranking 52nd out of 63 provinces and cities nationwide. This index saw the largest drop in ranking among the 10 indicators (down 47 positions). Among the 16 evaluation criteria of this index, 9 out of 16 increased points (5 criteria improved ranking, 4 dropped ranking); 7 out of 16 decreased points (2 improved ranking, 5 decreased ranking). Some criteria showed improvement: the rate of businesses paying informal costs to inspection officials (increased 56 places, ranking first nationwide); the rate of businesses paying informal costs when registering or modifying business registration (increased 27 places, ranking first nationwide); the rate of businesses paying informal costs to fire safety inspection officials (increased 28 places).

Provincial leaders at the meeting with businesses and investors, 2025. Photo: Mai Phương

Comparing with set targets, 9 out of 16 criteria met the targets. Compared with the median, 8 out of 16 criteria met or exceeded the median. Several criteria need to focus on improvement: Acceptable levels of informal costs (dropped 46 ranks, ranking 51st); rate of businesses paying informal costs to construction inspection officials (ranking 55th); businesses paying more than 10% of revenue for informal costs (dropped 31 ranks, ranking 60th); rate of businesses paying informal costs to expedite land procedures (dropped 32 ranks, ranking 50th).

With the Fair Competition index at 6.49 points, ranking 14th out of 63 provinces and cities nationwide, this is the indicator with the smallest drop in both points and ranking. Although it decreased in points, this index still ranks relatively well among provinces. The index includes 11 evaluation criteria, with 4 out of 11 increasing points (3 improving ranks, 1 dropping rank); 7 out of 11 decreased points and ranks. Some improved criteria: The rate of businesses agreeing with the statement “The province’s preferential treatment for large enterprises (both SOEs, private businesses, and FDI) hinders the operations of my business” (increased 9 places, ranking second nationwide).

Comparing with set targets, 4 out of 11 criteria met the targets. Compared with the median, 7 out of 11 criteria met or exceeded the median.

Several criteria need to focus on improvement: The rate of businesses agreeing with the statement “The province prioritizes attracting investment from larger businesses rather than developing local SMEs” (dropped 30 ranks); the rate of businesses reporting “Ease of access to land is a privilege for large businesses” (dropped 26 ranks); the rate of businesses reporting “Quick administrative procedures are a privilege for large businesses” (dropped 16 ranks).

The Business Support Policy index scored 6.12 points, ranking 60th out of 63 provinces and cities, the lowest ranking among PCI indicators this year. This index includes 13 evaluation criteria, with 5 out of 13 increasing points (1 improving rank, 4 dropping ranks); 8 out of 13 decreased points (1 improving rank, 7 dropped ranks).

Comparing with set targets, only 2 out of 13 criteria met the target. Compared with the median, this index has only 2 out of 13 criteria meeting or exceeding the median. Several criteria need to focus on improvement: The rate of businesses aware of programs supporting businesses to capitalize on opportunities from FTAs (dropped 36 ranks); the rate of businesses aware of programs supporting businesses to capitalize on opportunities from FTAs (dropped 32 ranks); the rate of private and foreign suppliers in total service providers (dropped 24 ranks, ranking 62nd).

The Legal Institutions & Public Security index scored 7.36 points, ranking 42nd in the country. This index includes 18 evaluation criteria, with 4 out of 18 increasing points and ranks; 8 out of 13 criteria decreased points and ranks. Some criteria showed improvement: The rate of non-state plaintiffs in the total number of plaintiffs at the provincial economic court (maintained the leading position); the security situation in the province is good (increased 32 ranks, ranked first nationwide); the rate of businesses paying extortion fees to gangs and organized crime groups for peace in business (increased 34 ranks, ranked first nationwide).

Comparing with set targets, only 3 out of 18 criteria met the targets. Compared with the median, this index has 6 out of 18 criteria meeting or exceeding the median. Several criteria need to focus on improvement: The rate of economic cases that have been resolved (dropped 46 ranks, ranked 63rd); the rate of businesses experiencing theft or break-ins in the past year (dropped 44 ranks); the rate of legal aid agencies supporting businesses to sue in disputes (dropped 33 ranks).

Through the analysis of the 142 indicators across 10 component indexes in the PCI 2024, 69 out of 142 indicators increased points, and 73 out of 142 indicators decreased points compared to PCI 2023. Compared with the median, 79 out of 142 indicators meet or exceed the median, while 63 out of 142 indicators are below the median; 6 out of 10 component indexes are higher than the median, and 4 out of 10 component indexes are below the national median.

The PCI 2024 score of the province ranked 32nd out of 63 provinces and cities nationwide. This result reflects the province’s efforts in improving the investment and business environment and administrative reforms in the past year, which have yielded positive results.

However, to improve the province’s PCI ranking in 2025 and subsequent years, further joint efforts from all levels, sectors, and localities with practical and effective solutions are required. Special focus should be placed on improving indicators and components with positive trends, while addressing those with lower scores or decreased rankings. Key indicators such as the Informal Costs index (ranked 52nd nationwide) and the Business Support Policy index (ranked 60th nationwide) need special attention for improvement in the near future.

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