The Da Nang government has released a report about the Department and District Competitiveness Index (DDCI) 2022, thereby recognising and finding solutions to improve the favorable business environment for investors and businesses.

Workers at the suit factory belonging to the Hoa Tho Textile and Garment Joint Stock Corporation. Photo: M.Q

Decrease in many indexes

DDCI is built and operated based on the same principles and methodology as the Provincial Competitiveness Index (PCI) developed by the Viet Nam Confederation of Commerce and Industry (VCCI) and the Viet Nam Chamber of Commerce and Industry implemented by the United States Agency for International Development (USAID).

After 5 years of implementation, DDCI 2022 was adjusted with three evaluation blocks: specialised agencies under the municipal People's Committee with 8 component indexes, and 62 evaluation indicators; central agencies in Da Nang with 8 component indexes and 61 evaluation indicators; and districts with 9 component indexes and 67 evaluation indicators.

Component indicators included transparency and access to information; dynamism and enforcement; time costs; unofficial costs; fair competition; business support; legal institutions; information technology application; and access to land and stability in land use.

As a result, DDCI in 2022 at the specialised agencies under the municipal People's Committee recorded the median score with 67.81 points, down 1.1 points compared to that in 2021.

Three leading units were the Department of Information and Communications (69.3 points), the Department of Education and Training (68.88 points) and the Department of Foreign Affairs (68.84 points).

Among them, the Department of Education and Training and the Department of Foreign Affairs were two units whose rankings have improved quite well compared to 2021, with an increase of 10 places and 4 places, respectively.

Meanwhile, the Department of Natural Resources and Environment was at the bottom of the rankings with 67.2 points.

The median score of central agencies in Da Nang in 2022 was 68.94 points, down 1.36 points compared to 2021.

Accordingly, the Fire Prevention and Rescue Police Division under the Da Nang Department of Police continued to maintain the leading position with 69.8 points and was the only unit in the "Fairly Good" group.

The "Fair" group comprised the Customs Department (69.04 points) and the Tax Department (68.94 points). The Market Management Department (67.92 points) and the city's Social Insurance (67.88 points) were included in the "Average" group.

The median score of districts in 2022 reached 69.63 points, a decrease of 4.07 points and 7/9 component indexes decrease compared to 2021.

Amongst, Thanh Khe District recorded the lowest score decrease. and climbed to the top position, ranked in the "Good" group with 72.58 points.

Lien Chieu and Hai Chau districts had a sharp decrease in scores, so they dropped from the "Good" to "Fair" and "Average" groups respectively.

Workers are working at the Pi Vina Da Nang Company based in Lien Chieu District. Photo: M.Q

A need for strong and sustainable improvement

Dr. Huynh Huy Hoa, Director of the city's Institute for Socio-Economic Research and Development, said that the results of Da Nang's DDCI over the past 5 years showed how businesses feel about the economic management and administration activities of the city. Accordingly, agencies and units in the city are gradually becoming less active. According to the results of DDCI Da Nang in 2022, dynamism and effectiveness are component indices with a sharp decrease in median scores in all 3 evaluation blocks.

The reason was thought to be that many cadres, when performing public duties, dare not make decisions because they fear they have to take responsibility for decisions.

Besides, transparency and access to information are component indexes that have tended to decrease in the last 2 years. At the same time, there is a slowdown in the units leading DDCI in previous years. It can be seen that if reform efforts are not continuously maintained, it is easy to affect the perception and evaluation of businesses, especially in the context of many fluctuations and difficulties in production and business activities.

The general solution is to promote internal resources and effectively exploit public investment capital. For departments, branches and localities, it is necessary to focus on carefully researching the city's PCI and DDCI criteria and indexes to identify the strengths and weaknesses of their units in the field of administrative reform, and the improvement of business investment environment, thereby proactively proposing solutions and effectively implementing activities to improve these indicators and targets, Dr. Hoa noted.

​Reporting by MAI QUE - Translating by M.DUNG