Thanh Hoa Champion drops PCI rank in 10 years from 2013 to 2023

DNHN - If Thanh Hoa ranked eighth in the ranking of Business and Investment Environment (PCI) in 63 provinces and cities across the country in 2013, its PCI rank has dropped nearly 40 places in just 10 years.

The Vietnam Federation of Trade and Industry (VCCI) has just released the Provincial Competitiveness Index (PCI) for 2022. According to this index, Thanh Hoa scored 63.67 points and ranked 47th out of 63 provinces and cities in Vietnam. This is the lowest ranking for Thanh Hoa in the ten years since VCCI began publishing this index.

Rapidest degrading

Exactly ten years ago, VCCI collaborated with the United States Agency for International Development (USAID) to release the PCI Provincial Competitiveness Index, a crucial investment and business climate indicator. Thanh Hoa achieved 61.59 points and ranked eighth out of 63 provinces and cities across the nation based on the index determining the "living environment" of businesses in the area based on six important component scores.

The majority of businesses in 2013 shared the same sentiment: in Thanh Hoa, access to land is quite convenient, the province consistently meets the needs of investors, and market entry is quite simple. The province has policies in place to support new businesses without obstructions or difficulties.

In addition, all policies, regulations, and standards, as well as information about projects in the province, are made public, which businesses appreciate because it facilitates easy access to information. incredibly appreciated.

In addition, the pioneering and dynamism of provincial leaders is a positive trait that businesses comment on and give points for. Provincial leaders swiftly and decisively resolved several enterprise difficulties and problems, thereby creating favorable conditions for enterprise growth.

However, only a decade later, in 2022, Thanh Hoa's PCI index quickly reversed. Thanh Hoa's PCI has "accelerated and regressed" and "reached the finish line" at 47th out of 63 provinces and cities across the country, causing local leaders and businesses to fear.

The competitive business environment is challenging

An economics expert, commenting on this ranking, opined that the aforementioned result is entirely comprehensible, given that the business climate in Thanh Hoa has been quite poor in recent years, and businesses have lodged numerous complaints. While other provinces across the nation improved in the index and the total score increased quite positively, in Thanh Hoa not only did the index scores not improve, but several indicators also declined.

This is illustrated by the Market Entry score. If this score was 8.85 in 2013, it will be 6.54 in 2022, the lowest in the previous decade. This indicates that it is extremely difficult to establish and operate a new business in Thanh Hoa.

In the past three years, it has become increasingly difficult for businesses to acquire land on which to construct their headquarters and factories, which is one of the most important factors in ensuring their survival and continued operation. Thanh Hoa's Land Access score has decreased from 6.94 points in 2020 to 6.47 points in 2022.

An economist commented on the improvement of Thanh Hoa's PCI Provincial Competency Index shortly: If you observe Thanh Hoa's score of "Business support policy" for six consecutive years, there has been an alarming decline in recent years. In 2022, this index for Thanh Hoa is the lowest it has been in the past six years, even though provinces across the country are business-friendly, are experiencing positive change, and are valued by businesses. If Thanh Hoa does not implement innovative business support policies, it will not only be unable to maintain the 47th position but also risk falling further.

PV