Nghe An improves district competitiveness index

“Golden time” to create a breakthrough in PCI index

After 4 years of organizing research-based assessment surveys, in 2023, for the first time, the DDCI index set and the most complete and scientific assessment methodology and legal basis were approved and applied by the People's Committee of Nghe An province to assess the district-level competitiveness index in 2022. According toNghe An Investment, Trade and Tourism Promotion Center, out of a total of 3,000 survey forms issued and sent to enterprises, cooperatives and business households in early June, including 1,500 forms assessing the competitiveness index of departments and branches and 1,500 forms assessing the competitiveness index at the district level, by early July, the consulting unit had collected more than 2,100 forms.

Although the number of votes collected is not enough, according to experts from VCCI, this is normal for surveys to evaluate business opinions, because responding to feedback is the right of businesses.District level competitivenessconsists of 9 component indexes, but there is overlap between the indexes and they are closely related to the administrative reform index... Therefore, when the DDCI index is announced, any district with a high ranking means it has a high administrative reform ranking before and any locality that has not accompanied businesses will have a difficult time with a high DDCI ranking. Currently, the sample forms are being compiled and analyzed by the consulting unit and are expected to be announced at the end of July after consulting the Provincial People's Committee.

Dr. Le Duy Binh - Economic Management Consulting Joint Stock Company (Econimica) - the unit that synthesizes and evaluates the DDCI index in 2022 of Nghe An province said: Based on the experience of previous years and selectively receiving from other provinces, this year's DDCI assessment is being carried out methodically and elaborately. Specifically, depending on the locality and the number of enterprises, cooperatives, and business households operating in the fields, it is expected that out of the total 1,500 ballots issued, 1,200 ballots will be collected. Of which, Vinh City has 120 ballots, the delta districts such as Quynh Luu, Dien Chau have 90 ballots; Yen Thanh has 85 ballots; Thanh Chuong and Do Luong each have 70 ballots; the remaining districts and towns range from 40 to 60 ballots. The ballots will be analyzed, evaluated, and ranked by the software.

According to experts from VCCI, this is a "golden time" for Nghe An to make a breakthrough in the PCI index, because in recent years, the province has been recognized by the business community, especially foreign-invested enterprises (FDI), for its efforts to improve the investment environment. The province's survey and public announcement of the results will demonstrate the province's strong determination, mobilizing the entire political system to improve the PCI index. The results of the district-level competitiveness ranking announcement are an opportunity for district-level localities and departments and branches to self-examine and evaluate to find solutions to improve the competitiveness index in the coming time.

From another perspective, the results of the assessment and ranking of district-level competitiveness are only the first step, reflecting the relationship between the business community, cooperatives and business households with the local government. In Nghe An, up to now, except for the two districts of Ky Son and Quy Chau which do not have district-level small and medium-sized enterprise associations, 18/21 districts, cities and towns have had business associations, so the relationship between the government and the business community is quite close. The form is sent directly to businesses, cooperatives and business households, representatives of business associations, entrepreneurs and associations.

According to Decision 1291/QD-UB issued on May 12, 2023 by the Provincial People's Committee, district-level competitiveness includes 9 component indicators: (1) Market entry, licensing and administrative procedures; (2) Transparency and accessibility to information; (3) Cost of administrative procedures and legal compliance; (4) Informal costs; (5) Fair competition; (6) Pioneering and dynamism of local authorities; (7) Production and business support activities; (8) Production and business support activities and institutional effectiveness, security and order; (9) Access to land.

Solutions to improve DDCI index

District-level DDCI has 9 component indexes, in which, in addition to the 8 component indexes common to departments and branches, there are additional indexes of institutional effectiveness and security and order. There is no other way to improve district-level DDCI than to follow the component indexes, in which the groups of indexes 1, 2, 6, 7 and 9 are the most important. The first solution is to improve the licensing index, market entry and administrative procedure implementation. This is one of the biggest difficulties and limitations of enterprises, cooperatives and business households at the district level. Most of these enterprises and cooperatives are small and micro-sized, so their management capacity, market entry and administrative procedure implementation are very limited.

The actual operation of craft village management cooperatives in recent times is the most typical example. Due to loose management and limited capacity, after establishment, operations are very difficult and confusing. Even cooperatives are assigned to manage craft village brands and trademarks after recognition, but do not know how to enter the market as well as manage and use the brands effectively. Therefore, to improve the index, the People's Committees at district and commune levels must accompany, support funding and human resources for enterprises and cooperatives to build product quality profiles to enter the market. In addition, each department and functional office in charge of monitoring also needs to accompany enterprises, cooperatives and business households in participating in supply-demand connection events and product introductions.

For example, the District Agricultural Service Center, the Department of Agriculture and Rural Development or the Economic Department (if it is an urban government) supports the preparation of documents for recognition of OCOP products, protection of intellectual property rights...; the Preventive Medicine Center, the District Health Department guides and supports cooperatives and household groups in preparing documents on the quality of safe consumer products, and submits them to competent authorities for approval...

The second group of solutions that districts must overcome difficulties is related to the transparency index, the ability to access information on land use planning, land use plans, etc. At the district level today, households starting businesses and establishing enterprises often face difficulties and confusion because they do not know whether their business ideas and projects are within the orientation and plans of the Party Committee and the government. Therefore, district and commune authorities, based on approved land use planning and plans, need to have a firm grasp of detailed planning and functional zoning, thereby creating favorable conditions for administrative procedures, guiding enterprises, cooperatives, and business households to access and complete procedures to apply for investment policies, saving travel time.

The next group of solutions that need to be improved is the proactive and proactive nature of the local government's production and business support activities. The guiding role of the specialized departments and divisions of the district People's Committee is very important. If the head of the specialized department or division is competent, he or she will support the guidance, and the procedures will be clear and quick; on the contrary, if the specialized department or division is weak and the head is not thorough and decisive, businesses and investors will have to wait a long time.

The final group of solutions is fair competition, institutional effectiveness and security and order. If in the past, this index was not considered important, now, in the face of increasingly complicated security and order situations, violations of land, natural resources and environmental laws are more likely to occur, so localities must pay attention.

Which locality creates an environment of equal competition and maintains it?regular dialogueIf the government and businesses have a good relationship, consensus in implementing administrative decisions will be high. On the contrary, if businesses do business but do not care about the environment and social responsibility, and the government does not play a good role in creating and adjudicating, it will be very difficult to turn the proposed regulations and institutions into reality.