Since its inception in 2006, Viet Nam’s Provincial Competitiveness Index (PCI) has placed Da Nang among the top localities in Viet Nam for many consecutive years. However, the city has slipped out of the country’s top 3 most competitive localities for the first time starting from 2014, and this concerning matter has prompted Da Nang government to take more drastic actions to improve the city’s PCI performance for 2020 and the subsequent years, thereby ensuring the city’s readiness to welcome a new wave of domestic and FDI investment when Covid-19 is put under control.

The Da Nang authorities are striving to create a fair investment environment and maintain its attractiveness to investors from both home and aboard.

The results announced by the Viet Nam Chamber of Commerce and Industry (VCCI) and the US Agency for International Development (USAID) showed that Da Nang took fifth place in the PCI ranking for 2019 with 70.15 points on a 100-point scale, the same position recorded in the previous year.

Encouragingly, the city topped the 2019 PCI ranking for the central coastal region, and it was followed by Quang Nam Province with 69.42 out of 100 points.

Amongst the 10 sub-indices in the PCI ranking, Da Nang made remarkable improvements in the criteria of ‘land access’ with 7.44 points, ‘informal charges’ with 6.75 and ‘legal institutions and order security’ with 6.99 over the past 5 years.  Also, these are the three sub-indices that Da Nang has achieved the highest scores over the past 5 years.  The city saw a significant increase in the points of 8/ 10 sub-indices against 2018.  However, the points of ‘market entry costs’ and ‘time costs’ have slightly decreased.

Facing this fact, the Da Nang government has put in place more drastic measures to improve its investment and business environment.  On the spotlight are how to enhance of the quality of civil servants working at administrative agencies, stepping up the reform and simplification of administrative procedures publicity, and ensuring transparency of information on land, business registration, preferential mechanisms and other related issues.

Also importantly, more regular exchanges and dialogues between the city leader and businesses will be held in a bid to help sort out any difficulties and troubles facing the business community.

Da Nang-recorded points and positions on the PCI ranking over the 2010 – 2019 period

According to the Da Nang Institute of Socio-Economic Research and Development, sub-indices of the PCI in which many businesses raise their concern are ‘Transparency’ and ‘Equitable Competitive Environment’

In an attempt to enhance Da Nang’s performance in these two important indexes, in the coming time, importance will be attached to widely publicising paperwork related to the bidding procedures and other issues, handling any requests or recommendations from  businesses, and dealing with administrative procedures for businesses. The Da Nang government has taken steps to ensure fair treatment of private,  State-owned, FDI companies.

Also, a fair access to preferential loans from local financial resources must be ensured for all of the businesses operating in the city.

Da Nang Department of Planning and Investment Director Tran Phuoc Son affirmed, in parallel with taking steps to better the local investment and business environment, the city is making all necessary preparations to attract potential domestic and foreign investors after the epidemic is contained.

In the immediate future, all the related procedures will be completed for the granting of  investment licenses for new projects in the Da Nang Investment Forum 2020, which is scheduled to take place next month.

Bustling work ambiance recorded in the Hoa Cam Industrial Park-based Foster Electronics Co., Ltd.

It is also worth noting that the Da Nang government will continue its firm stance on attracting domestic and FDI inflows in such priority aspects as information technology, digital industry, nanotechnology and bio-industry, in tandem with saying ‘no’ to the deployment of projects that use outdated technologies and equipment or pose danger to the environment. 

Meanwhile, the Da Nang Department of Natural Resources and Environment will concentrate on earmarking sufficient land resources for future projects.

Besides, another heed will be paid to making appropriate adjustments to the master urban plan for Da Nang’s growth to 2030, with a vision to 2045, and socio-economic development strategies to 2030.

By PHONG LAN – Translated by A.T