Vietnam improves investment climate to benefit businesses

(VOVworld) – The Vietnam Chamber of Commerce and Industry (VCCI) in cooperation with the US Agency for International Development (USAID) has released its annual Provincial Competitiveness Index (PCI). The index shows that improvement in provincial economic management and simplified administrative procedures have benefited businesses. 

Vietnam improves investment climate to benefit businesses - ảnh 1
The meeting to release PCI 2016 report

The PCI 2016 shows that the economic management of provinces and cities has been improved remarkably in administration dynamism, labor training, business registration, and business consultancy services. Da Nang city continues to lead the PCI ranking with 70 points on the 100-point scale.

Da Nang city’s Party Secretary Nguyen Xuan Anh said Da Nang deems it a political task to improve the business and investment environment and support businesses. “We invite businesses to invest in Da Nang and you should trust the city’s leadership. We’ll do all we can to make businesses happy and obtain the best results.”

The PCI was introduced in 2005 to assess trade environment, economic management quality, and administrative reform for each province and city. Dau Anh Tuan, head of the Legal Department of VCCI, said 90% of Vietnamese businesses are small or medium-sized.

The local administration needs to talk with businesses to create a level playing field for development. “Authorities and businesses need to talk on regular basis to understand each other and prescribe appropriate actions. That will reduce red-tape in administrative procedures. Local authorities and sectors should maintain a regular dialogue with businesses.”

The CPI, based on a survey of more than 11,000 domestic firms and 1,600 foreign-invested enterprises in 14 cities and provinces in Vietnam, showed positive changes in Việt Nam’s business environment.


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