Hanoi moves up four places on competitiveness index

10:08 | 04/05/2019 Economy- Society

(VEN) - Hanoi, the capital, came in ninth in the 2018 Provincial Competitiveness Index (PCI), up four places compared to 2017, according to the Vietnam Chamber of Commerce and Industry (VCCI). Vietnam Economic News’ Nguyen Hanh spoke about this with Mac Quoc Anh, Vice Chairman and General Secretary of the Hanoi Association of Small-and-medium sized Enterprises.

hanoi moves up four places on competitiveness index
Mac Quoc Anh, Vice Chairman and General Secretary of the Hanoi Association of Small-and-medium sized Enterprises

What is your assessment of Hanoi’s PCI improvement?

On May 16, 2016, the government issued Resolution 35/NQ-CP on facilitating business development to 2020. In concretizing this resolution, Hanoi issued a plan to help businesses reduce costs, save time and create a transparent business environment.

Most importantly, the business community and the city leadership have had a good, continual interaction. The city has dealt with any problems hindering business development on a timely basis.

Hanoi has initiated public projects needing investment to attract investors. The capital became one of the leading attractors of foreign direct investment (FDI) and lured more than US$6 billion in FDI in 2018.

Unofficial costs paid by enterprises have decreased. What do you think about this?

The most important is to help businesses save time and reduce costs.

Hanoi is aiming to realize its e-government vision to 2020. Administrative procedures have been handled online at level 4. This helps businesses minimize unofficial costs. Information about administrative procedures has been made public online.

The time it takes to register an enterprise remains long, about one month. Why?

The time required to license start-up businesses and for household businesses to become joint stock companies and limited liability companies dropped from 21 to 7-14 days several years ago and has recently been shortened to only one to three days.

The one-month licensing could be a special case of businesses that must satisfy special conditions.

Hanoi still has room to improve its business environment and PCI. What do businesses expect, especially in the context of international integration?

The most important thing is fair treatment for state-owned enterprises and private businesses, and for large and small to medium-sized enterprises in terms of information and assistance policies. It is necessary to promote administrative reform and e-government to minimize unofficial costs.

The Hanoi People’s Committee recently issued a plan to improve its business environment and PCI standing in 2019,

with a vision to 2021.

Nguyen Hanh