Resolve for Higher PCI

In 2020, the Provincial Competitiveness Index (PCI) of Dak Lak reached 63.22 points, ranked No. 35 out of 63 provinces and cities, climbing three places from 2019 and reaching No. 2 in the Central Highlands. The PCI improvement year by year is the clearest evidence for the resolve of the provincial leaders for a better business investment climate.

Results better, but no breakthrough

Seeing the importance of the PCI Index to economic governance reforms and providing an enabling business investment environment for enterprises, based on annual PCI reports results, Dak Lak province has assessed and analyzed its results, including causes of declining component indices and solutions for better performance in the following years. With ongoing efforts for a more enabling investment climate, although the PCI Index of Dak Lak has not made long strides in rankings in recent years, it has still achieved some remarkable progress. In 2019, its PCI rose by 2.33 points to 64.81 points, ranking No. 38 (two places higher over 2018), listed as a good performer. Some component indices increased strongly like business support services index (going up 33 places to No. 6) and transparency index (going up 28 places to No. 18). In 2020, its PCI scored 63.22 points, ranked No. 35 out of 63 provinces and cities, climbing up three places from 2019 and No. 2 in the Central Highlands after Lam Dong province. Some indicators made clear progress like market entry (7.23 points), time cost (7.32 points), legal institutions and security and order (7.03 points). Despite positive changes, according to the Director of the Department of Planning and Investment Dinh Xuan Ha, PCI has not improved significantly relative to the potential of the province and expectations of the government. Although the PCI Index increased in scores, its rankings stayed average relative to other provinces and cities in the country. No breakthrough improvement has been made.

In 2018 and 2019, the Access to Land Index was not appreciated as a result of Notice No. 53 of the State Audit on investment projects hiring land in the province. Land and investment procedures were almost halted to wait for official conclusion. In addition, some projects which had the land allocated or leased failed to carry out their projects as registered due to belated land compensation and site clearance, especially projects using agricultural and forest land. On the other hand, the coordination of relevant bodies in solving problems for enterprises is not very effective. Some are not really active and serious to advise on improving component indicators within their jurisdiction. The sense of responsibility and capacity of public employees in performing official duties is not high, thus requiring more time to settle administrative procedures for enterprises and investors.

Actively clearing bottlenecks

Based on analysis results on component indices and key reasons for PCI decrease in recent years, to improve the PCI and, above all, create a favorable business environment for enterprises, Dak Lak province issued specific action plans to implement Resolution 02/NQ-CP dated January 1, 2021 of the Government on continued implementation of main tasks and solutions for stronger business environment and national competitiveness in 2021 (Action Plan 584/KH-UBND dated January 19, 2021 of the Provincial People's Committee); the Action Plan for implementation of the District and Department Competitiveness Index (Plan 9807/KH-UBND dated October 30, 2020 of the Provincial People's Committee). Component indices are assigned to specific agencies, based on their functions and tasks. Lead agencies are responsible for coordinating with relevant agencies to fulfil their tasks of raising the component index, and for reporting and explaining specifically to the Provincial People's Committee.

To enhance competitiveness and raise the PCI Index and attract more investors, Chairman of Dak Lak Provincial People's Committee Pham Ngoc Nghi said that the province will be more resolved to improve its administration, promptly send recommendations to central agencies to deal with emerging hardships faced by businesses and investors. The province will continue to direct complete solutions of existing matters concerning investment projects that hire land; strengthen cross-sector coordination to provide the most favorable conditions for enterprises to access planning documents, investment locations; and support investors in site clearance for project implementation. It will effectively carry out tasks and solutions in action programs and plans of the Provincial People's Committee to implement the Government’s Resolution 19, Resolution 02 and Resolution 35; and business supports as specified in the Law on SME Support, which focuses on assisting business households to transform into companies and operate under the Law on Enterprises. It will continue to facilitate business operations by simplifying and reforming administrative procedures, comprehensively reforming specialized inspection and getting connected to the National Single Window Portal to bring public services of Level 3 and Level 4 online, and removing difficulties and problems for enterprises. Each level and branch of authority will actively perform tasks relating to PCI component indicators and strengthening coordination of concerned agencies in handling administrative procedures.

Source: Vietnam Business Forum