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Hanoi aims to raise its competitiveness index for better investment and business environment
Hanoi, the discussion on the Provincial Competitiveness Index (PCI) 2008 for Hanoi held by the Hanoi People’s Committee on 11 August, 09 after 5 months the People’s Committee and the Department for Planning and Investment implemented the Project on Improving PCI for Hanoi in the period of 2009 – 2010.
Mr Nguyen Huy Tuong, Vice Chairman of the Hanoi People’s Committee in his opening speech, indicated the determination of Hanoi to raise its competitiveness index up to 10 steps in order to improve the investment and business environment of the city.
Last year Hanoi ranked 31 out of 64 provinces/ cities of Vietnam in terms of PCI. The two year project approved by the municipal administration to increase the city’s PCI and its participation in the Prime Minister’s Administrative Procedures Simplification Project are deemed necessary for the city in its expansion period and competition with other domestic and regional cities.Under the project, the city will promote the transparency to provide business community more information, speed up labor training and diversify public services to facilitate business operations.
Frank Donovan, director of the US Agency for International Development (USAID) said that the discussion showed Hanoi’s commitment to make its investment environment more attractive to businesses.He said PCI is a useful tool for increasing the quality of economic governance of local provinces, especially for private sector and private investment.
The PCI program has been implemented nationwide since 2005 by the joint cooperation between USAID/Vietnam Competitiveness Initiative project and the Vietnam Chamber of Commerce and Industry (VCCI). The PCI ranking has have significant impacts on many economic, trade and investment development programs in Hanoi, contributing in enhancing the high standard of living, creating more job opportunities and improving the business environment of the city. USAID Director also pledged that USAID is ready to support the Vietnamese government in carrying out the administrative reform project that will help raise Hanoi’s PCI.
In the past seven months, Hanoi has attracted US$322 million in investment capital, ranking 6th among 36 provinces and cities that attract foreign investors.
Currently the city has more than 71,000 operational businesses, mostly small- and medium-sized ones.