The awarding ceremony for top 10 performing localities in the 2024 Provincial Competitiveness Index (PCI) rankings, Ha Noi, May 6, 2025

This is a key finding of the 2024 PCI ranking report, the 20th edition of this kind, released by the Viet Nam Chamber of Commerce and Industry (VCCI) in Ha Noi on Tuesday.

The northern province of Quang Ninh, a long-time frontrunner in the PCI rankings, came in second with 73.2 points-up 1.95 points from last year. It continues to be one of the best performers, having remained in the top five for an impressive 12 consecutive years. Key improvements in Quang Ninh were observed in land access, transparency, fair competition, workforce training, and institutional quality.

Rounding out the top five were Long An, Bac Giang, and Ba Ria – Vung Tau. Other localities including Hue, Hau Giang, Phu Tho, Dong Thap, and Hung Yen were also in the Top 10.

Meanwhile, centrally-run citie-Ha Noi, Ho Chi Minh City, Hai Phong, Hue, Da Nang, and Can Tho-were placed among the top 30 provinces and cities for overall governance quality. Each of these cities saw improvements in their PCI scores compared to 2023, although the pace of progress varied.

The PCI measures economic governance and administrative reform efforts across Viet Nam's provinces and cities, drawing from a survey of nearly 11,000 businesses nationwide.

The 2024 PCI also comes at a time of structural transition in Viet Nam's local administration system.

This is the final PCI edition that will include all 63 provinces and cities in their current form. Under Government Resolution 74 and Central Committee Resolution 60, several provinces are expected to undergo administrative mergers to create 34 larger provincial-level units.

VCCI said that the performance gap in PCI scores between some of the merging localities underscores the need to harmonize governance quality as the new units are formed. Bridging these gaps will be essential to ensure a smooth transition and maintain the momentum in business climate reform.

However, the 2024 PCI also highlights areas where many provinces continue to struggle. Land access, high compliance costs, and a decline in local government dynamism remain key concerns for the private sector.

"As Viet Nam targets an ambitious GDP growth rate of 8 percent in 2025 and double-digit growth beyond that, sustaining high-quality local governance plays the decisive role," said VCCI.

VCCI also underlined the importance of improving the business environment for Viet Nam to stand by other leading economies in in the region and the world./.