On 6 May, the Vietnam Chamber of Commerce and Industry (VCCI) in Hanoi held the Launch Ceremony for the 2024 Provincial Competitiveness Index (PCI) Report. The event also marked the 20th anniversary of ongoing efforts to improve the business environment in Vietnam.
Attending the ceremony were Chairmen, Vice-Chairmen, and high-level representatives from the People’s Committees of 35 provinces, along with business leaders. Attending on behalf of EuroCham Vietnam was Vice-chairman Minh Nguyen.
An overall improvement in business climate
In his opening remarks, VCCI President Mr. Pham Tan Cong stated that the 2024 PCI Report reflects a positive outlook on provincial-level economic governance in Vietnam. The median Provincial Competitiveness score reached 67.67 points – an increase of 1 point compared to the previous year. This marked the eighth consecutive year that the median score has surpassed the 60-point threshold, a level widely regarded as indicative of a favourable business climate.
Impressive firsts for Hai Phong and Hung Yen
For the first time, Hai Phong rose to the top position with a score of 74.84, taking the first position previously held by Quang Ninh in 2023. This result reflects Hai Phong’s recent achievements in economic growth and investment appeal.
PCI’s top 5 continues to involve localities that have held high positions for many years, such as Quang Ninh (73.20 points), Long An (72.64 points), Bac Giang (71.24 points). Noteworthy performances were also seen among provinces in the Top 10, including Ba Ria – Vung Tau, Thua Thien – Hue, Hau Giang, Phu Tho, Dong Thap, and notably, Hung Yen, which entered the Top 10 for the first time.
PCI – a reference for policy recommendations
The Provincial Competitiveness Index acts as a reliable reference for policy recommendations by experts. Vietnam’s economic growth has brought impressive progress in the country’s goal to achieve middle-income status by 2045. However, increasing environmental risks and natural disaster hamper this progress.
Thus, Vietnam needs to establish a robust governance system that enables policymakers to respond effectively. Policy makers should maintain a balanced approach between fostering a competitive and business-friendly environment and managing activities that contribute to pollution and climate change.
EuroCham is committed to building a favourable business climate in Vietnam
EuroCham Vietnam remains committed to accompany Vietnam’s improvement in business climate. With 5 cross-sectoral Must-Win battles in 2025 – optimising immigration procedure, expanding visa waivers, improving work-permit policy for foreign workers, accelerating VAT refund, & simplifying customs clearance – we aim to support in increasing the competitiveness of the Vietnamese market.
