Hanoi seeks to improve its competitiveness ranking further

09:18 | 23/07/2019 Economy- Society

(VEN) - The capital Hanoi is focusing on improving its ranking on the 2019 Provincial Competitiveness Index (PCI), especially in terms of competitiveness and promoting production and business activities of local enterprises.

Hanoi has implemented many programs to improve its PCI

Low year-on-year growth

The Hanoi Department of Industry and Trade reported that in the first half of this year, despite the 7.72 percent growth in the added value of the industry sector, the year on year growth only expanded 7.7 percent, which means industry is growing at a slower pace. In addition, total retail sales are also showing a slower growth, making it hard for businesses to expand production.

Analyzing the reasons for the slow growth of Hanoi’s industrial sector, economic experts said some plants have cut production output or moved to other places. Since the beginning of 2019, Hanoi has only attracted US$64 million of investment capital, a year on year decline of 24 percent.

Vice Chairman of the Hanoi Association of Small-and-Medium sized Enterprises (SMEs) Mac Quoc Anh said Hanoi has nearly 300,000 enterprises but 97 percent of those are SMEs and mostly operate in the service sector instead of the production segment.

Experts say that in order to boost the capital’s industry and trade, apart from efforts by businesses, Hanoi needs to improve its investment and business environment. Mac Quoc Anh asked the Hanoi People’s Committee and Department of Industry and Trade to adopt mechanisms and policies to support industry, agriculture or trade promotion programs and also enhance administrative reform to ensure the effectiveness of the support programs.
Deputy Director of Hanoi’s Department of Industry and Trade Tran Thi Phuong Lan said last year said that last year, the city entered the top 10 list of the country’s PCI ranking for the first time. To maintain its top position, the city needs to keep creating the most favorable conditions for investors and businesses.

Improving low ranking indexes

The Hanoi People’s Committee recently issued Guidance No 10/CT-UBND on improving the PCI index in 2019. Accordingly, it urged people’s committees at district level to fix or improve their performance as reflected in various indexes.

Specifically, the city People’s Committee asked the Department of Information and Communication to coordinate with related agencies to improve the “transparency” index (ranked 55/63), which implies that they need to post information on their websites transparently.

It also required the Department of Natural Resources and Environment to enhance the “land access” index (ranked 56/63); provide information on land use and planning to individuals and organizations conveniently and quickly; improve the rate of granting land use right certificates to organizations; and release a land price frame close to actual market prices.

It also asked the Hanoi Association of SMEs to coordinate with business associations to improve the “Equal Competition” index, ranked 62/63 as well as the “Dynamic provincial governments” index ranked 57/63 and other indicators related to civil servants, administrative reform, unofficial costs of doing business, and more.

The City People’s Committee assigned the Department of Planning and Investment to maintain and promote the “Market entry cost” index, ranked 6/63, and the “Business support service” index ranked 5/63. It also asked the department to complete the project on supporting start-ups and creative activities in Hanoi; maintain 100 percent of business registration dossiers received and processed online, and strive to handle 30% of public services online at level 4; reduce processing time for responding to enterprises’ requests.

It also asked the Department of Labor, Invalids and Social Affairs to continue improving the already highly ranked quality of the city’s labor training index, currently ranked 4/63, and improve the effectiveness of managing and operating the employment transaction floor and related services.

Vice Chairman of Hanoi People’s Committee Nguyen Doan Toan:

Hanoi will promote institutional reforms and strive to improve citizen and business satisfaction with city services in

order to improve its PCI ranking in 2019 and in the future.

Thanh Ha