The Provincial Competitiveness Index ( PCI )

The Provincial Competitiveness Index

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Hai Duong Determined to Improve PCI Rankings

Resolution 08 dated August 19, 2021 of the Hai Duong Provincial Party Committee aims to enhance the business investment environment and provincial competitiveness in the period of 2021-2025, according to Mr. Trieu The Hung, Chairman of the Hai Duong Provincial People’s Committee. The resolution sets an ambitious target for Hai Duong to rank among the top 20 provinces in the country and the top 5 provinces in the Red River Delta region in terms of the Provincial Competitiveness Index (PCI) by 2025. This target requires all agencies, branches, and localities to implement concrete and effective measures to improve their performance, while ensuring the satisfaction of people and businesses with the outcomes.
Prime Minister Pham Minh Chinh pays a working visit to the production and assembly line of Ford Vietnam in Hai Duong province
Hai Duong province achieved economic growth of 7.23% in the first six months of 2023, ranking 15th out of 63 provinces and cities in the country and 7th in the Red River Delta region. This remarkable achievement was the result of strong determination and effort. Could you please elaborate on the main factors that contributed to this success? What priority tasks need to be carried out effectively in the remaining months of the year?
Hai Duong province overcame numerous challenges and achieved an economic growth rate of 7.23% in the first half of 2023, ranking 15th among 63 provinces and cities nationwide and 7th in the Red River Delta region. The province’s economic structure shifted positively, with the agriculture, forestry, and fishery sectors growing by 1.79%, the industrial sector by 9.19%, construction by 5.88%, services by 6.09%, and product tax by 8.37%.
However, some limitations were also evident. Industrial production encountered difficulties, causing some enterprises to reduce their output. The attraction of investment capital into industrial parks was modest, and the province failed to draw large projects and potential investors. The investment procedures needed to be improved, and public investment was sluggish.
In order to accomplish the planned targets for 2023, Hai Duong province has to implement several major tasks in the last six months of the year. The province will focus on implementing tasks and solutions to stimulate production, support business development, foster growth, and restructure the economy in various sectors and fields. Moreover, Hai Duong will give priority to the implementation of key state-funded projects, especially national target programs and socioeconomic recovery and development programs. The province will also improve the quality of investment project appraisal and consulting.
The province will also prioritize the removal of difficulties and obstacles in specific areas. These include urgent coordination to complete provincial planning documents, which will provide a basis for implementing social and economic development programs and projects. Additionally, the province will focus on strictly managing revenue sources to ensure they are correct, sufficient and timely, according to current laws. Furthermore, resources for development investment will be prioritized, and the disbursement of public investment capital will be accelerated.
Moreover, Hai Duong will actively promote effective economic restructuring. This will involve changing growth patterns and enhancing productivity, quality, efficiency, and competitiveness. These efforts will create a solid foundation for realizing long-term goals as stated in the provincial planning, programs, and action plans on socio-economic development. The province is also committed to ensuring national defense and security in the Red River Delta.
Hai Duong province scored 65.22 points in the Provincial Competitiveness Index (PCI) 2022, ranking 32nd out of 63 provinces and cities. Compared to 2021, the province’s ranking declined significantly (down 2.34 points and 19 places), but still remained relatively high compared to previous years. How do you evaluate this performance?
Improving the business investment environment and enhancing provincial competitiveness are the core and comprehensive tasks that Hai Duong always prioritizes. The resolution of the 16th Provincial Party Congress (2015-2020 term) stressed the need to “further improve and create new appeals in the investment and business environment, mobilize and effectively use resources for development investment.” Based on this foundation, many projects and plans were initiated and implemented. However, despite the province’s considerable efforts, the results did not meet the expectations.
For the 2020-2025 term, the Provincial Party Committee issued Resolution 08 on August 19, 2021, aiming to strengthen the business investment environment and enhance provincial competitiveness in the 2021-2025 period. The leadership’s determination has become the determination of the entire political system. It must be acknowledged that after half the way of implementing Resolution 08, overall, although the PCI performance has not met the expectations, there has been a significant improvement.
In reality, Hai Duong’s overall PCI scores and rankings witnessed a decline in 2022 after remarkable advancements in previous years. However, the PCI performance in 2022 was not entirely negative, considering the substantial progress made in 2021. In that year, Hai Duong achieved an impressive increase of 5.13 points and 34 places. Therefore, the decline in 2022 was somewhat regrettable.
However, from the perspective of PCI as a tool to measure local governance and administration, these fluctuations have important implications. Some PCI experts considered the exceptional performance in 2021 as a “golden opportunity” for governments at all levels to gain new insights and adopt innovative approaches to self-assessment. This period enabled Hai Duong to identify bottlenecks and weak links more clearly, facilitating necessary changes and progress.
Taking human issues as an example, leader roles in administrative operations and PCI improvements are made clearer. The Secretary of the Provincial Party Committee once emphasized, “The keys are to have positive changes from the most important factor - people - and actions.” Up to now, the biggest “achievement” is the heightened awareness of PCI’s significance and roles in development. The government system is really eager to make the PCI score higher.
Moreover, improving competitiveness is a long-term race, requiring perseverance and systematic actions. Localities always strive for PCI progress, but doing better than themselves and better than other provinces is not easy. In reality, there are many cases like Hai Duong: After many years of low rankings, PCI suddenly surged in a year and then dropped back to the previous level. However, thanks to this “shock”, localities discovered effective methods. We fully believe that once we create a high level of awareness, especially coherence in action, it will bring good results in the coming years.
Following the announcement of PCI 2022, the province organized an analytical conference to identify the causes of the decline and develop improvement plans; assigned clear tasks to each department, branch and locality; and attached the responsibility of agency leaders for each specific target.
In the future, the province will concentrate on implementing the District and Department Competitiveness Index (DDCI) survey to create more opportunities for PCI improvement. In the first DDCI release, Hai Duong demonstrated determination and efforts to conduct administrative reforms, improve the investment environment, and enhance competitiveness. Also on this occasion, provincial leaders expected that the business community would support the province in this process and provide suggestions and proposals to relevant agencies so as to have more appropriate responses to emerging issues.
The provincial leaders of Hai Duong commend the enterprises that have made substantial contributions to the provincial development
Hai Duong province identified the “human factor” as a limitation and made efforts for better changes. Could you please share how this determination is communicated and implemented?
Hai Duong province has recognized the “human factor” as a key constraint and has taken significant steps to address it. The province has implemented more rigorous and closer actions, including inspection, supervision, generous rewards and strict punishment, to create a better change. If higher leaders are serious, their subordinates will follow suit.
To achieve the goal of being among the top 20 PCI performers by 2025, the Provincial People’s Committee has demanded each public employee, especially agency leaders, to uphold a sense of responsibility and self-awareness in performing public duties for the common good and aspiration of the province for higher levels of development. The province will resolutely handle any violations and delays in resolving administrative procedures, particularly in the following stages: construction permits, site clearance, land procedures, and environmental issues.
Hai Duong is determined to build a strong contingent of public officials imbued with the spirit of serving people and businesses. Personnel work is essential but challenging, and Hai Duong will persist with it for the more prosperous development of the province.
Source VCCINews