Binh Dinh ranked 4th over 64 cities and provinces nationwide, reflecting its significant efforts to simplify administrative procedures and improve legal frameworks, according to the Provincial Competitiveness Index (PCI) for 2007, released recently.

Cat Hung interviewed director of Binh Dinh Department of Planning and Investment, Le Van Tam, about the issue.

The “one door” office can simplify administrative procedures for business registration. Photo C.H

 

Q: What do you think about the PCI ranking?

A: The PCI ranking, an annual survey that categorises and ranks provincial economic governance, has been carried out for three successive years. Thanks to the increase of the number of enterprises joining the survey year-after-year, the results accurately reflect the provincial economic governance and business environment.

This year’s key tendency is that PCI was improved. The points of eight sub-indices increased, except for the labor training and private sector development activities. The entry and time costs saw the most improved sub-indices, according to the detailed report of International Finance Corporation's (IFC) business environment improvement program and Mekong Private Sector Development Facility (IFC/MPDF).

Southern provinces appeared the most competitive ones; meanwhile, southern and central coastal provinces had the highest points nationwide.

Q: Binh Dinh’s rank declined. What does it mean?

A: Binh Dinh went down from the 3rd in last year’s index to 4th this year, but the PCI quality was absolutely different. Only Binh Duong and Da Nang were two very high competitive province and city and Binh Dinh ranked as high competitive one in 2006; however, this year’s four very high competitive ones included Binh Dinh.

Also, Binh Dinh earned 69.46 points, compared with 66.49 points in 2006, proving the improvement of its business environment.

Provinces and cities are more and more concerned about the improvement of investment and business environment. The scores, therefore, will be able to change in the following years. It will be a challenging problem for Binh Dinh to keep its position and earn more points because Vinh Long and other provinces and cities have proved their improvement.

Q: What are Binh Dinh’s weaknesses compared with three top provinces? What must we do to keep up with them?

A: The survey ranked Binh Dinh as leader of entry costs and transparency and access to information with 9.26 and 7.72 points, respectively. Such sub-indices as the proactivity of local leadership, informal charges, private sector development activities were ranked 2nd and 3rd.

Out of four sub-indices, including private sector development, transparency, proactivity of local leadership, and labor training, Binh Dinh had three ranked 1st.

Some sub-indices were declining in Binh Dinh, such as labor training, legal institutions, land access and security of tenure, and time costs of regulatory compliance.

Our target is, in my opinion, how to overcome ourselves instead of keep up with or pass top provinces. We keep the good and try to improve weaknesses. The survey would be continued in the coming time and three sub-indices (transparency, labor policies, and legal institutions) would be suggested as key fields, according to Vietnam Chamber of Commerce and Industry (VCCI) and Vietnam Competitiveness Initiative (VNCI).

Relating to labor policies, increasing the number of training centers and improving the training quality and labor relationship are really important, which needs, in my opinion, our great concern to fulfill requirements of integration and investment attraction.

Binh Dinh’s detailed PCI rankings in three years

• Cat Hung (translated by Hong Quang)