The Vietnam Chamber of Commerce and Industry (VCCI) released their latest competitive index for provinces report (PCI 2018) and Quang Ninh province has the best business environment in Vietnam. Based upon the VCCI’s criteria, Quang Ninh scored 70.36 out of 100 points.
Here are the PCI’s top 10 provinces:
1. Quang Ninh
2. Dong Thap
3. Long Anh
4. Ben Tre
5. Da Nang
6. Binh Duong
7. Quang Nam
8. Vinh Long
10. Ho Chi Minh City
The VCCI’s 2018 PCI report and its rankings are based on responses from over 12,000 domestic and foreign enterprises and the sentiment from these companies shows a noticeable improvement in Vietnam's business environment, including encouraging administrative reforms, a less biased business environment and declining informal charges.
The VCCI report notes that while there are improvements in the business environment, it's the responsibility of the provincial governments to create the environment that businesses want and need. This includes continuous feedback from their respective business communities, reforming administrative procedures that effect business, improving labor quality and providing support to both new and existing businesses.
Vu Tien Loc, Chairman of Vietnam Chamber of Commerce and Industry highlighted that business optimism remains relatively high with 49% cent of surveyed private firms and 56% of surveyed foreign enterprises planning to expand their operations in Vietnam in the next two years.
Other key issues that the 2018 report highlights are:
• Foreign enterprises are optimistic about the opportunities in Vietnam and are encouraged to invest in the country, however they want the government to focus immediate attention on issues key to them, such as customs clearances, inspections, social insurance and taxes.
• Human resource issues remain a constraint and constant problem for companies in terms of labor quality and the number of highly-skilled personnel available
• Domestic companies are showing limited abilities to integrate their businesses globally, with a key identified factor being the absence of an effective mechanism to ensure contract enforcement. This is a critical issue for micro-and small-sized enterprises experienced since they have limited access to capital and other resources need for global trade.