Ha Noi (VNA) - The Provincial Competitiveness Index (PCI) proved to be a useful tool for Vietnamese localities to assess their economic performance and fostering private sector growth.
The US Ambassador to Viet Nam , Michael Michalak, made the remark at a seminar on the 2007 PCI on business environment in Ha Noi on November 8, expressing his hope that the index will contribute to the development of Viet Nam ’s economy.
The PCI ranking has also helped Viet Nam improve living conditions for its people, increase competitiveness capacity and speed up reforms of business environment, said the diplomat.
As part of the US Agency for International Development (USAID)-funded Viet Nam Competitiveness Initiative project, the PCI polled thousands of private businesses in all 64 provinces and cities in Viet Nam , enabling them to voice their concerns and share experiences with their respective provincial governments.
The PCI rates provinces and cities on a 100-point scale in an effort to explain why some parts of the country perform better than others in terms of private sector dynamism and growth.
Vu Tien Loc, Chairman of the Viet Nam Chamber of Commerce and Industry (VCCI) which conducted the ranking, attributed the success of the PCI to active participation of local companies, noting that more than 6,700 enterprises took part in the survey, up 1.5 times over that in 2005.
“This is convincing evidence that shows businesses’ awareness of the significance of the PCI to improving local investment and business environment,” he said.
Another expert, Le Dang Doanh, said the index confirmed the private sector’s important role in promoting economic growth, generating jobs and accelerating hunger elimination and poverty reduction.
All 10 sub-indices of the PCI that capture key dimensions of the local business environment are in line with Viet Nam ’s commitments to the Viet Nam-US Trade Agreement and the World Trade Organisation, he added.
According to the 2007 PCI released on November 8, southern Binh Duong province continued to lead the nation in supporting business development with 77.20 points, while Ha Noi climbed to the 27 th position from the 40 th last year.
The southern largest economic hub of Ho Chi Minh City ranked 10 th , scoring 64.83 points, and the northern mountainous province of Lao Cai gained 66.95 points to take the 5 th place.
Central Binh Dinh and Mekong Delta Vinh Long provinces emerged strongly on the new index to rank in top five, proving their greater efforts despite unfavourably geographical locations.-Enditem
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