The Viet Nam Chamber of Commerce and Industry (VCCI) and the US Agency for International Development (USAID) anounced the 2020 PCI rankings on Thursday morning. Da Nang is one of the top five Vietnamese localities across the whole Viet Nam, coming in at 5^th, behind Quang Ninh, Dong Thap, Long An and Binh Duong.

The 2020 PCI rankings 

The Provincial Competitiveness Index (PCI) is the result of a major ongoing, collaborative effort between the Vietnam Chamber of Commerce and Industry (VCCI) and the U.S. Agency for International Development (USAID) to enhance provincial economic governance to create a business-enabling environment for private sector development in Viet Nam.

The PCI is designed to assess the ease of doing business, economic governance, and the efficacy of administrative reform efforts by local governments in 63 cities and provinces across Viet Nam and municipalities. This year, the PCI marks its sixteenth anniversary with the 2020 PCI report.

The 2020 PCI report dedicates a special chapter to investigate how COVID-19 has impacted the business community in Viet Nam, bringing fresh insights into the challenges that firms had to face. Prompt responses were essential to contain the virus’ spread and support from the national and provincial governments helped businesses cope with the economic shock.

The overall PCI index score comprises ten subindices, namely market entry costs, land access, transparency, time costs, informal charges, equitable competitive environment, proactive leadership, business support services, labour training, and legal institutions, on a 10-point scale each, all of which reflect economic governance areas that affect private sector development.

Quang Ninh Province secured its position at the top of the 2020 PCI ranking with impressive score of 75.09/100, followed by Dong Thap with 72.81/100, Long An 70.37/100, and Binh Duong 70.16/100.

With an overall score of 70.12/100, Da Nang retained its position in fifth place for the third year running, naming among excellent performers in the 2020 PCI rankings.

Most notably, Da Nang topped the 2020 PCI rankings for the central coastal region, and it was followed by Quang Nam Province with 65.72/100, caming in at 13^rd. 

Amongst the 10 sub-indices in the PCI rankings, Da Nang made remarkable improvements in market entry costs and informal charges which are the two sub-indices that Da Nang has achieved the highest scores since 2017.

In addition, Da Nang has received highest score for time costs, equitable competitive environmen, and legal institutions since 2006.

In particular, Da Nang came in at 3^rd across the whole Viet Nam with 7.87/10 for labour training, took 4^nd place with 8.75/10 for market entry costs, finished in 7^th with 7.35/10 for land access, came in at 8^th with 8.62/10 for time costs.

Over the past 16 years, Da Nang has secured its top position in the rankings for 7 years, retained its position in second and fifth place for 3 years and 4 years respectively.

Reporting by KHANG NINH – Translating by H.L