Danang seeks to improve PCI ranking this year
By Thanh Hai – The Saigon Times Daily
DANANG – Danang City and the Vietnam Chamber of Commerce and Industry (VCCI) have garnered suggestions from enterprises and relevant agencies to help the central city improve its ranking in the Vietnam Provincial Competitiveness Index (PCI) this year.
Speaking at a seminar on how to raise the city’s PCI position last week, Van Huu Thiet, deputy chairman of Danang City’s Small and Medium-Sized Enterprises (SMEs) Association, said the city continuously secured the second place between 2005 and 2007 before taking the lead for three years in a row.
But the city last year ranked fifth with its scores falling to 66.98 points, indicating the provincial governance failed to satisfy local enterprises’ expectations.
Among nine indexes of the PCI, the city saw its score dropping in informal charges, business support service, time costs for implementation of government regulations and access to land. Therefore, Danang needs to identify what is the cause and solutions to fix it, Thiet said.
Trinh Bang Co, general secretary of the city’s Tourism Association, shared the same view, saying SMEs in Danang were having greater difficulty accessing land than foreign enterprises or those from other localities.
Businesses still meet challenges with unclear time of land lease, making it hard to work out a long-term investment plan. Land use right transfer fees vary for different projects while land evaluation is still haphazard.
The city’s transparency and information access scores dipped last year as well. Co suggested authorities clearly inform residents and businesses, especially of planning, land policy and industry development plans.
Le Van Hieu, vice chairman of the Vietnam Young Business Association in Danang, meanwhile, said the sharp decline in the labor training index dragged down the competitiveness of the city. The index dropped from 7.43 to 5.69 points as labor demand rose suddenly while supply failed to meet foreign language and labor skill requirements of investors.