Northern Vietnam city Hai Phong claims top spot for first time in Provincial Competitiveness Index

The coastal city of Hai Phong has, for the first time, topped the 2024 Provincial Competitiveness Index (PCI) with a score of 74.84, marking a significant milestone in its economic governance journey.

The PCI 2024 results were officially announced by the Vietnam Chamber of Commerce and Industry (VCCI) at a ceremony held in Hanoi on Tuesday.

According to VCCI chairman, Pham Tan Cong, Hai Phong’s rise to the top reflects its consistent efforts to improve the local business climate through key reforms such as streamlining administrative procedures and promoting investment.

Joining Hai Phong in the top five were Quang Ninh (73.20 points), Long An (72.64), Bac Giang (71.24), and Ba Ria-Vung Tau (71.17).

This year’s top 30 also featured other notable provinces and cities including Hue, Hau Giang, Phu Tho, Dong Thap, Hung Yen, Can Tho, Ben Tre, and Ninh Thuan.

Hung Yen also entered the top 10 for the first time.

The release of the 2024 PCI marks 20 years since the index was first introduced, with the goal of fostering a transparent, business-friendly, and competitive environment across Vietnam

The 2024 report is based on feedback from nearly 11,000 domestic and foreign enterprises, offering a comprehensive overview of provincial economic governance and business sentiment nationwide.

This year’s PCI continues to highlight reform efforts at the local level, while also addressing the challenges businesses face.

Notably, the 2024 edition expands its scope to include assessments on environmental governance and green investment promotion - key indicators as localities move toward sustainable development and green growth.

Cong also said that PCI 2024 would be the final edition to evaluate all 63 provinces and cities in their current form, ahead of the upcoming administrative restructuring outlined in the Party Central Committee’s Resolution No 60-NQ/TW, which takes effect in 2025.

He added that as provinces merge and local governance becomes more complex, maintaining and enhancing economic management quality will be critical. In this context, the PCI will remain an essential tool, offering data-driven insights to guide smooth, efficient and balanced regional development during the transition.

Secretary of Hai Phong city Party Committee Le Tien Chau, said the city had made persistent efforts to create a more favourable business climate and responsive administration.

"In 2024, the city achieved a rare hat-trick by leading in three key national indicators: the PCI, the Public Administration Reform Index (PAR Index), and the Satisfaction Index of Public Administrative Services (SIPAS). This triple recognition affirms Hải Phòng’s strong commitment to reform and its reputation as an attractive destination for investors," Chau said.

Over the past several years, Hai Phong has consistently improved its PCI rankings, thanks to bold reforms focused on streamlining administrative procedures, building digital government systems, and enhancing the professionalism of public service delivery.

"From 2019 to 2023, the city saw a notable shift in its PCI performance, breaking into the top tier of provinces nationwide. In 2021, Hai Phong reached second place among 63 provinces and cities. It maintained its strong showing in the following years, ranking third nationally in both 2022 and 2023, and second within the Red River Delta region," he added.

The local government has issued numerous action plans for administrative reform, with a strong focus on assigning clear responsibilities to individual officials and Party members, under the guiding principle of 'six clears'.

Clear personnel, clear tasks, clear timelines, clear accountability, clear outcomes, and clear authority. Regular dialogues with both domestic and foreign-invested enterprises have helped promptly resolve bottlenecks and improve policy responsiveness.

Hai Phong has also led efforts in digital transformation. By 2024, all administrative procedures had been handled at its One-Stop Service Center, with full publication of procedures and service fees online.

The city has also waived or reduced fees for online public services and ensured 100% connectivity across all wards and communes through a specialized data network, paving the way toward full digital governance.

Deputy secretary general and head of the Legal Department at VCCI, Dau Anh Tuan, said the latest PCI report painted a positive picture of provincial governance improvements, with the median score rising to 67.67 - a one-point increase over 2023.

This marked the eighth consecutive year the national median PCI score has exceeded 60 points - the threshold indicating a favourable business environment. Notably, the core index of economic governance quality reached 68.18, continuing its steady upward trend since 2016.

“These improvements reflect the determination and persistence of local governments in driving reforms, as well as the active oversight and feedback from the business community,” Tuan said.

Last year, the 2023 PCI – announced in April 2024 – ranked Quang Ninh, Long An, Hai Phong, Bac Giang and Dong Thap among the top five performers in economic governance.