Competitiveness improvement to meet development needs - Final part

Update: 08-05-2021 | 12:25:51

Binh Duong was rated as having the best infrastructure index in Vietnam in 2020, and is also one of the localities that often at top of this index for many years. In addition, its efforts in administrative reform and improvement of investment environment have been appreciated by experts and corporations through survey results of the 2020 Provincial Competitiveness Index (PCI). Binh Duong rose from the 13th (in 2009) to 4th position in the overall ranking in 2020.

Binh Duong is among the top 4 localities having excellent economic governance quality in 2020. In photo: Provincial leaders receive the 2020 PCI's medal.

Efficiency in management and development

The PCI report was designed to assess the business environment, quality of economic governance and administrative reform effort of governments of provinces and cities across the country. The PCI 2020 report marked the 16th year that Vietnam Chamber of Commerce and Industry (VCCI) and United States Agency for International Development (USAID) have cooperated to implement and publish the PCI Index in Vietnam. With a comprehensive scale of investigation and periodic update methodology to follow the reality of Vietnamese business environment, the PCI 2020 report continued to convey the voice of business communities inside and outside the country about quality of economic governance in 63 provinces and cities from practical experience of enterprises.

According to experts, at beginning of 2020, many international assessments believed that Vietnam would take advantage of the US-China trade war to consolidate its national position as one of the largest "factories" of the world and could possibly reach 7% economic growth. Vietnam has become a top-choice destination of foreign investors. The COVID-19 pandemic has somewhat stalled this process, resulting in Vietnam's real GDP growth rate decreasing by only 2.9%. However, on a broader scale of the global economy, Vietnam still attracts a significant amount of FDI capital in 2020 of 28.5 billion USD, equal to 75% compared to 2019. Realized investment capital in 2020 reached nearly 20 billion USD, equivalent to the same period previous year. Vietnam's impressive results in epidemic response and control have also contributed to increasing Vietnam's competitiveness.

Particularly in Binh Duong, in 2020 while socio-economic conditions were affected of the pandemic, the flexible and timely direction and management of provincial leadership, along with the active participation of political system, the support of all people and enterprises helped Binh Duong gain important results. Binh Duong effectively implemented the "dual goal" to prevent and fight against the pandemic, protect people health, while complete goals and tasks of socio-economic development. Namely, the province's Gross regional domestic product (GRDP) increased 6.19% compared to 2019. According to the assessment, although it was the lowest growth rate since 2016, it was a relatively high growth rate compared to the whole country and the Southeast region.

Specifically, Index of Industrial Production (IIP) increased 8.02%; total retail sales of consumer goods and services increased by 12.3%; export turnover increased by 8.5%; total investment capital for social development reached 133,568 billion VND, increased 11.6%; provincial total FDI capital reached 1 billion USD, domestic investment capital reached more than 70,000 billion VND. By the end of 2020, Binh Duong's FDI capital attraction reached 35 billion USD with 3,923 projects, was ranked third in the country, only after Ho Chi Minh City and Hanoi. Export turnover of 2020 reached 27.4 billion USD, trade surplus 6 billion USD. Total State budget revenue was estimated at 61,400 billion VND, creating new jobs for 45,300 workers; per capita income VND151 million/year.

Impressive Binh Duong

Overcoming common obstacles, Binh Duong rose to the 4th position in the PCI ranking of 2020. Many experts evaluated Binh Duong returned stronger, being "one of the stars" of the 2020 PCI rankings.

Talking about Binh Duong still attracting FDI, Dau Anh Tuan, Director of PCI Project, said that there were many important factors, such as favorable geographical location, be on economic development axis of Ho Chi Minh City as well as link with the Southern key economic region. In which, Binh Duong has made a very methodical and scientific investment in technical infrastructure to improve the quality of infrastructure, effectively serving the local socio-economic development. Especially in terms of administrative procedure reform, recently, Binh Duong has made remarkable progress, was appreciated by business communities. “Binh Duong has a public administration center. Through many years, we find that enterprises evaluate it was very effectively. The quality of Binh Duong's infrastructure has been in the top of many years and led in 2020 in the whole country in terms of industrial zones, transportation infrastructure, internet, electricity... With the operating quality shown by high PCI, I have faith that Binh Duong would make breakthroughs in the coming time in attractting FDI, especially high-quality foreign investors”, said Mr. Dau.

Vu Tien Loc, Chairman of VCCI, said that PCI 2020 of the province rose to 4th place, showing the efforts of Binh Duong in improving environment business and competitiveness. “I appreciate Binh Duong's efforts in building an innovative city. An important thing is that Binh Duong not only builds material facilities but also create an ecosystem, create perfect services, a convenient business environment to attract innovative companies. I hope that with considerable experience in development process, and as one of the leading provinces and cities in the industrialization of the country, Binh Duong would continue to be successful”, said Mr. Vu.

According to Mr. Vu, VCCI is ready to join hands with Binh Duong in promoting entrepreneurship and innovation. VCCI will assist the province in transforming development model as well as economic structure more effectively.

Vu Tien Loc, Chairman of Vietnam Chamber of Commerce and Industry: “The efforts of Binh Duong over recent years to improve the investment and business e[nvironment are very respectable. I hope that, in the coming time, Binh Duong will regain its strength as a leader in the process of reform and industrialization of the country. VCCI would like to join hands with the province to promote innovation, start-ups, and efficiently transform economic development model".

Many experts also believe that, in the Southern Key Economic Region, Binh Duong is considered as a model for smart city, with many advantages and the extensive application of high technology into all areas. The project of Binh Duong smart city has become the central development strategy in order to achieve the goal of creating a breakthrough in socio-economic development, gradually shifting the province's economy to high-tech services, building green, smart and modern Binh Duong city in the future.

Reported by Minh Duy - Translated by Ngoc Huynh

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Competitiveness improvement to meet development needs - Final part

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