2021 PCI Provincial Profiles

Published: Apr 27, 2022

Executive Summary

Provincial governments have contributed tremendously to Vietnam’s reform achievements over the past two decades. Effective implementation of central policies and proactively addressing needs on the ground have proven to promote business development. Moreover, provincial governments have played an increasingly critical role in the devastating COVID-19 crisis these past two years, commendably implementing crisis response measures while at the same time helping firms to navigate the pandemic waves with the least disruptive effects.

To accelerate Vietnam’s economic recovery firmly back to its high growth trajectory, action programs and implementation efforts at the provincial level will be vital, alongside key policies adopted by the National Assembly and the Government, such as the National Assembly Resolution 43 and the Government Resolution 11. Provincial governments will be instrumental in ensuring the speed and thoroughness of policy rollouts on the ground and the responsiveness of vaccination coverage programs and pandemic control policies, while ensuring accelerated execution of major infrastructure projects and public investments.

Despite a year made very difficult by the pandemic, the currents of reform at the provincial level in Vietnam remain powerful. The median score in the PCI 2021 boasts a continued rise thanks to strong commitments to administrative procedures reform and impressive declines in informal charges, although worrying signs remain in accessing land and postregistration procedures.

The health crisis has created huge challenges to the business community, slowing down the growth momentum over the last two years, but we remain confident that with the proactivity of provincial leaderships, the dynamics of reform programs at the grassroots level will continue at pace. Over the last few decades Vietnam’s economic dynamics are the clear outgrowth of provincial proactivity.