Removing bottlenecks, improving the Provincial Competitiveness Index (PCI) - Part 1: PCI index is not stable
From 2019 to 2022, Nghe An maintained a high ranking, ranking first in the North Central region and always being in the top 30 leading provinces in the national Provincial Competitiveness Index (PCI). However, in 2 consecutive years (2023 - 2024), Nghe An's PCI index has dropped significantly, with many component indexes ranked low.
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Pham Bang - Thanh Le• 07/08/2025
From 2019 to 2022, Nghe An maintained a high ranking, ranking first in the North Central region and always being in the top 30 leading provinces in the national Provincial Competitiveness Index (PCI). However, in 2 consecutive years (2023 - 2024), Nghe An's PCI index has dropped significantly, with many component indexes ranked low.
The business investment environment is a synthesis of objective and subjective factors and conditions that directly or indirectly affect the investment activities of investors and enterprises, reflected through many indicators, of which PCI is the main indicator. Recognizing the importance of enterprises to the development of the province, the Resolution of the 19th Nghe An Provincial Party Congress, term 2020 - 2025, identifies 1 of 3 development breakthroughs: "Strongly improving the business investment environment associated with administrative reform, enhancing the application of information technology in management and operation".
With the motto of building a creative and serving government, taking the trust and satisfaction of enterprises as the core goal to promote economic development, Nghe An province has recently issued many mechanisms and policies, implemented many solutions to improve the investment and business environment and increase the PCI index. Based on the viewpoint that Provincial Party Secretary Nguyen Duc Trung has repeatedly emphasized: "The difficulties and obstacles of enterprises are also the difficulties and obstacles of the province", Nghe An's departments, branches and localities have maintained a regular dialogue mechanism, proactively listened to and grasped the difficulties of enterprises and actively removed and resolved them to create the most favorable conditions for enterprises and investors to operate.
The province has also strengthened investment promotion, attraction, support and development activities for businesses. Issued documents to rectify discipline, enhance responsibility, overcome limitations, and create a favorable investment and business environment for businesses. Resolutely directed the review and handling of slow-progressing and backlogged projects. Director of the Department of Home Affairs Nguyen Viet Hung said that in recent times, Nghe An has continuously innovated and strongly reformed administrative procedures with a focus on key points to create a truly open and attractive investment environment, with real efficiency to attract businesses and investors. Up to now, Nghe An is one of 20 localities nationwide with the highest rate of online business registration (100%).
Investment procedures in economic zones and industrial parks are resolved quickly and conveniently, with processing time reduced by two-thirds as prescribed. In the 2021-2025 period, the province has reduced processing time for 812 procedures, with a total reduction of 2,117.5 days. Currently, 11/13 departments and branches have reviewed and proposed to reduce processing time for 287 administrative procedures; many administrative procedures have been reduced by over 50%.
Nghe An has also completed the approval of land use planning for the period 2021 - 2030 for 21/21 districts, cities and towns before the end of district-level activities. At the same time, amend and supplement the land price list of industrial parks in the Southeast Economic Zone, accelerate compensation and site clearance, land allocation, land lease, and issuance of land use right certificates for projects. Prepare land funds and investment sites to attract investment enterprises and pay attention to infrastructure investment in industrial parks and industrial clusters, thereby helping enterprises access more easily to resources on infrastructure, land, sites, labor, etc.
Appreciating the province's listening, sharing and accompanying the business community in recent times, Mr. Tran Anh Son - Vice Chairman of the Provincial Business Association, Chairman of the Provincial Outstanding Business Association assessed: The investment and business environment of Nghe An province has been clearly improved; many mechanisms and policies have been effective.
The proof is that in 3 years (2022 - 2024), Nghe An has continuously been in the top 10/63 provinces and cities (old) of the country with the largest FDI attraction results in the country. Nghe An has attracted many of the world's leading technology "eagles" in the global supply chain such as: Luxshare ICT, Shangdong, Everwin, Foxconn, Sunny, Goertek, Juteng, Runergy...
Some of the province's PCI component indexes have ranked high compared to the whole country over the years, such as: Business support policies have been in the top 10 for 7 years, including 4 years in the top 5; Market entry index has been in the top 10 for 2 years. Some indexes that were previously ranked low in the province have now improved very positively, such as the land access index increased by 48 places, ranking 7th nationwide; the informal cost index increased by 13 places; the legal institutions and security and order index increased by 32 places. In the market entry index, 7/19 ranking indicators are in the top 10. The index on the quality of business support services has improved and is one of the 2 best-ranked indexes in the province, ranking 7th nationwide.
Although Nghe An's investment and business environment has improved, according to the assessment of provincial leaders and the wishes of businesses, it has not met requirements, there are still barriers and bottlenecks. In the past 2 years, the province's PCI index has decreased in ranking. In 2024, Nghe An achieved 66.48 points, ranked 44/63 provinces and cities nationwide, maintaining the same ranking as in 2023, ranked 2nd in the North Central region. Some component indexes are ranked low such as: Transparency (ranked 59), time cost (ranked 59), fair competition (ranked 58), labor training (ranked 55) ...
Assessing that Nghe An has made many efforts to reform administrative procedures, but many barriers, bottlenecks and shortcomings in management, operation and public service implementation need to be recognized, the causes found and thoroughly and seriously handled, Mr. Phan Duy Hung - Head of Legal and Foreign Affairs Department, VCCI Nghe An - Ha Tinh - Quang Binh Branch said: High unofficial costs are one of the main reasons why Nghe An province's investment environment has lost points. This affects the confidence of businesses, creates burdens, increases costs, and loses investment and business opportunities for businesses, especially businesses that operate honestly and effectively and want to expand their business.
In recent times, Nghe An province has had many solutions to create clean land for businesses and investors, but compared to the demand, it is still lacking. Mr. Do Sy Quang - Vice President of Nghe An Young Entrepreneurs Association, Director of ABT Trading Joint Stock Company shared: For manufacturing enterprises, the land issue is of great concern to businesses with the desire to invest in expanding production and business. However, currently, small and medium enterprises are having difficulty accessing clean land funds. Many businesses are assessing that the province's business environment is not really equal between large enterprises and investors and small and medium enterprises.
Nghe An is a province with a large area and a large population, but paradoxically, there is a shortage of local labor. Enterprises and investors are still facing difficulties in recruiting labor, especially trained and high-quality labor. Therefore, this index of the province in 2024 continues to decrease in points and ranking. Many enterprises assess that the province's labor training work is still not stable in quality, not meeting the needs of enterprises and investors, thereby affecting the production and business plans of enterprises. In addition, the lack of social infrastructure for workers, low welfare... leads to the situation of workers changing jobs.
A notable point is that many businesses are assessing the province's business environment as not really equal among businesses and investors. The PCI 2024 Index results show that the transparency of the province's business environment is declining, after improving in the previous two years, with 10/14 indicators having scores equal to or lower than the median value and many indicators ranking near the bottom of the rankings.
Most small and medium enterprises believe that provincial leaders give more preferential treatment and create more favorable conditions for large enterprises than for small and medium enterprises, while small and medium enterprises account for a large proportion and have contributed a lot to the locality. Although the province has given strong direction, enterprises believe that the quality of administrative reform has not met the requirements of enterprises and investors.
Explaining the reason, according to the Department of Home Affairs, the coordination between state management agencies in handling administrative procedures and removing difficulties for investors in some cases is still not timely. Some administrative procedures have complicated processing processes, have not been reduced or simplified, causing inconvenience to businesses and investors; digital transformation is still slow, and the provision of online public services throughout the process still has many limitations. Cadres, party members, civil servants and public employees at all levels still violate discipline, administrative discipline and public ethics, leading to disciplinary action.
It must be affirmed that the PCI survey results are representative and do not fully reflect all aspects of the province's business investment environment. However, as Secretary of the Provincial Party Committee Nguyen Duc Trung once affirmed, improving provincial competitiveness and improving the PCI index is not simply about improving rankings, but the larger goal is to improve the open, transparent, stable and effective business investment environment for businesses to operate. Improving the PCI index is both a goal and a driving force for Nghe An province to change, become more dynamic, have better management and operational capacity, better implement the spirit of serving businesses, so that businesses operate effectively, and contribute positively to the development of the province.
