Thanh Hoa PCI Improvement: Momentum for Development

On March 14, 2017, the Vietnam Chamber of Commerce and Industry (VCCI) and the United States Agency for International Development (USAID) launched the Provincial Competitiveness Index (PCI) 2016. Thanh Hoa province scored 58.84 points, a drop of 2.20 points from 2015, losing 21 spots from the 10th position to the 31st position out of 63 provinces and cities. To enhance its PCI, create breakthroughs in administrative reform and improve the business environment as stated in the Resolution of the 18th Provincial Party Congress (2015 – 2020 term), Thanh Hoa province has carried out many solutions and activities to clear difficulties and challenges against the business community in 2016 – 2017.


Among 10 PCI component indices in 2016, Thanh Hoa province saw two indices advance: Dynamism and leadership of the government climbed from 4.32 to 4.65 and business support looked up from 6.06 to 6.19 while the rest fell by 0.2-0.5, with three dropping most: Time expense losing by 0.57 points from 5.92 to 5.35, labour training slipping by 0.49 from 6.82 to 6.33, and legal institution dipping by 0.48 from 5.83 to 5.35. VCCI President Vu Tien Loc said, different views in building and perfecting policies and mechanisms are normal and necessary. It is important to discuss different points thoroughly to reach consensus. Looking from this angle, these are better signals for Thanh Hoa to build an enabling government to create and serve a transparent and efficient investment environment.

Ongoing efforts Although the overall index fell slightly, its PCI rankings dropped a lot as other localities have a better business environment. Moreover, according to the 2016 PCI Report, low-ranked localities had made great efforts for impressive reforms. They learnt and applied good practices on improving the business environment from their peers. Meanwhile, higher-ranked ones see more challenges in seeking new initiatives and methods to speed up public administration reform and economic development.

Before innovation and reform pressures, a series of solutions and activities to deal with hardships and obstacles and accompany businesses such as perfecting mechanisms and policies, accelerating administrative procedure reform, enhancing government – business dialogues have been implemented. Mr Nguyen Dinh Xung, Chairman of the Provincial People’s Committee, said, Thanh Hoa will accelerate communications in order to tackle difficulties of enterprises in time.

At present, the Chairman of the Provincial People’s Committee meets businesses on the 21st day of every month to learn about their difficulties to better support them. He/she also directs the chairs of the District/City People’s Committees to arrange at least one day in a month to receive and address problems and obstacles for enterprises. This is the most effective solution to support enterprises.

The province has also established provincial and district public administrative centres. The Provincial Public Administration Centre is expected to come into operation by October 2017 and all district public administrative centres will be operational by December 31, 2017. Therefore, the settlement of administrative procedures will be strictly supervised and ensure publicity and transparency. The operation of public administrative centre will strictly control the time of settling administrative procedures by state agencies. Mr Nguyen Dinh Xung said that the Provincial People’s Committee also hopes that the business community will regularly research and propose specific solutions to the Provincial People’s Committee, provincial and local agencies to improve the investment and business environment; develop mechanisms, policies and solutions on business development and business entrepreneur force construction. The serious attitude of local and provincial leaders shows the province’s great determination to sharpen competitiveness and improve the investment and business environment. And, that spirit has been spreading to the entire political system.

Thanh Hoa province’s objectives of improving business investment environment, supporting development and enhancing competitiveness in 2016 – 2020

General objectives

Specific objectives:

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