Hoa Binh: Discussing solutions to improve the PCI index, helping to enhance the investment environment

DNHN - Following the July 2022 work plan, on the afternoon of July 20, 2022, the Hoa Binh Provincial People's Committee, the Department of Planning and Investment of the province, and the Business Association of Hoa Binh province will host a conference to analyze the PCI index in 2021 and propose solutions to improve it in 2022.

Member of the Party Central Committee, Secretary of the Provincial Party Committee, Head of the National Assembly Delegation of Hoa Binh province - Ngo Van Tuan; Standing Deputy Secretary of the Provincial Party Committee, Chairman of the People's Council of Hoa Binh Province- Bui Duc Hinh; Deputy Secretary of the Provincial Party Committee, Chairman of the Hoa Binh Provincial People's Committee- Bui Van Khanh, and a representative of the Ministry of Education and Training were all present at the conference. Also present at the conference were the Chairman of the Provincial Business Association, the Chairman of the People's Committees of the districts, and several business representatives and investors from Hoa Binh province.

Achievements and obstacles

At the opening of the conference, Chairman of the Provincial People's Committee of Hoa Binh, Bui Van Khanh, stated: "Development of cultural and social activities, health care and epidemic prevention and control, security and order and national defence work are maintained, and there are no hot spots in Hoa Binh province during the first half of the year.

At the beginning of such a year, it is possible to say that Hoa Binh has many positive aspects and is striving to achieve the socio-economic development goals of 2022. In addition, the satisfaction score, the appraisal of the people, and the provincial competitiveness index (PCI) of Hoa Binh are moderate.

Through the conference, the province of Hoa Binh hopes to hear experts and representatives of enterprises operating in the province discuss ways to overcome challenges and hurdles in investment operations in the region. Hoa Binh also desires to enhance the investment climate so that enterprises may have confidence and do business, contributing to the province's socio-economic growth.

Mr Vu Tien Loc, President of the Vietnam International Arbitration Center, commented on the province of Hoa Binh's efforts in the recent past as follows: "The province of Hoa Binh must make efforts to tailor changes to the intended audience. feels that PCI will improve during the next several years.

The innovative and dynamic actions of provincial leaders are highly regarded, but their judgments are not always implemented effectively at all levels. There is a mechanism for assigning the task of improving the competitiveness index of the business environment to each department, department, and sector, as well as a mechanism for the People's Committee, the People's Council of the province, and the provincial delegation of the National Assembly to carry out monitoring programs.

Hoa Binh has also successfully pioneered the development of a set of competitiveness indices at the district, department, departmental, and sectoral levels and assigned it to the Provincial Business Association as the ranking body.

It is known that the People's Committee of Hoa Binh province published many directing and operating documents in 2021 to strengthen the business climate and boost the province's competitiveness; Creating working groups to assist investors, and accelerating the investment progression of projects...

However, at the conference, the Director of the Department of Planning and Investment of Hoa Binh province Nguyen Van Thang pointed out the difficulties, problems, and issues, such as Investment promotion and support for businesses and investors are not very effective and practical; business environment transparency is not particularly high. The administration and monitoring of projects following investment approval is irregular, resulting in the investment delay of several projects...

Recognize reality to develop relevant solutions

Mr Nguyen Huu Thap, chairman of the Association of Small and Medium-Sized Enterprises in the province of Tuyen Quang, gave ideas to the search for ways to help Hoa Binh enhance PCI.

Mr Thap stated that the Hoa Binh Province Business Environment Steering Committee must prepare an action plan. Particularly, mandate a minimum 30 per cent decrease in administrative procedures within one year. Members of the Steering Committee must have efforts to enhance the enterprise business environment.

Specifically, each month must include at least one proposal to eliminate obstacles for firms. The departments, agencies, and sectors receiving the enterprise's dossier must only get the instruction document once. From there, companies are aware of what must be included, preventing administrative procedures from taking longer to process.

The sense of responsibility of the heads of the Standing Provincial Party Committee, the People's Council, the People's Committee, departments, departments, branches, and localities must be emphasized. To enhance the business environment and the PCI, it is necessary to pay greater attention to the Resolution's contents.

PCI is only one of the markers, but it is a crucial one! Administrative change has not yet been implemented, nor has digital transformation occurred. This requires improvement. The attitude and accountability of public officials are particularly significant factors. Office culture and ethics in the public sector have not altered. Everyone returns laborious tasks to the business. 

Information quality comes next. For instance, it is vital to be clear regarding facts regarding land, how it is planned, and whether it has been utilized yet. The information available to corporations and individuals is extremely limited. This needs to be altered. There is a great deal of overlap between inspection and examination. There are numerous inspections and checks, yet the amount of deterrent is insufficient. Poor land management persists, resulting in counting and compensation challenges for project execution.

Bad examples of security, order, and social safety work also arose. Specifically, more intricate concerns of national security and religious security. We must focus on maintaining the peaceful existence of the populace. The Business Association must provide assistance and education to the province's business community to enhance their legal knowledge and professional credentials. The management agencies must be engaged realistically.

Mr Tuan stated, "In sum, we must exert greater effort, beginning with the education of each cadre at the grassroots level and extending to the provincial level; only then can we achieve our goals."

The first is the PAPI - Provincial Governance and Public Administration Performance Index; the second is the DTI index - a collection of metrics for evaluating digital transformation at the ministerial and provincial levels; and the third is the PCI - Provincial Competitiveness Index.

Dr Vo Tri Thanh, Director of the Institute for Brand Strategy and Competitiveness, asserts that: "We should focus not only on these three indicators but also on additional indicators, which may include the green index. In addition to the COP26 promise, there are many new initiatives, such as the Green Growth Strategy or the recently authorized Circular Economy Project, and the Ministry of Planning and Investment's intention to transform the conventional industrial park into a circular economy zone. 

Specifically, Hoa Binh is a trailing province, yet it is also a province with rapid development. Consequently, the PCI index may not properly reflect the situation, and Hoa Binh may merely encourage This figure since Hoa Binh province is predominantly green and clean, making implementation easier. Or, the indicator relates to the number of "big guys" that may be recruited in a given year - either the first firms, foreign investment, or local investment; this provides a strong link between the supply chain and value chain. Hoa Binh should examine and contemplate expansion to fulfil further n indicators. It is not simply a collection of DTI, PAPI, or PCI signs ".

The Vietnam Confederation of Trade and Industry (VCCI) released the Provincial Competitiveness Index (PCI) 2021 Annual Report in April. With 73.02 points, Quang Ninh remains at the top of the PCI 2021 rankings. This is also the fifth consecutive year that this province has led the nation in PCI scores.

Mr Pham Van The, chairman of the Quang Ninh Business Association, spoke about the experience: "In the past, we have been required to constantly update material for provincial leaders' reports. Every Saturday or Sunday, the Chairman of the Provincial People's Committee requests that the Director of the Department of Planning and Investment, the Chairman of the Provincial Business Association, and the Chief of Staff meet together with business leaders to identify answers. 

Then, we travelled to each location to determine why the indications were high or low. I thought the provincial leaders of Hoa Binh province to be quite essential. We expect that leaders and local departments and agencies would concentrate on resolving business issues, particularly those that remain unresolved ".

Mr Nguyen Kim Hung, Director of the Vietnam Institute of Corporate Governance Science and Digital Economy, also suggested three alternatives.

In the PCI indicators, the evaluation of foreign firms investing in the province must be enhanced. Websites of the Department of Planning and Investment, promotion centres, organizations, etc. are typically the best location to deliver English-language information to international enterprises that require it, in addition to a dedicated channel for foreign businesses. It is vital to develop the benefits of partnerships with international businesses and specify administrative procedures, import and export, and customs, among other things.

In the last six months of the year, it is vital to evaluate particular indications for each indicator of success and to pick the goals with the highest weight. Those indicators that are at an acceptable level should be maintained, while those that are mediocre should be addressed quickly.

The province of Hoa Binh is reviewing paper-based indicators; thus, gradually transitions to online assessment and increases the number of businesses participating in the evaluation.

Representatives of several enterprises and experts stated at the conference that the province and its departments, branches, and municipalities have a chance to examine the situation in light of the constraints and obstacles it has faced in recent years. In actuality, there exist robust answers, paving the way for a breakthrough in improving the investment climate and boosting the province's competitiveness shortly.

PV