E magazine: PCI in 2021 and Vinh Phuc's spectacular comeback journey

05/05/2022

The Weighted Competitiveness Index of Vinh Phuc in 2021

The Weighted Competitiveness Index of Vinh Phuc in 2021

The Provincial Competitiveness Index (PCI) ranking for 2021 has just been announced on the morning of April 27, marking a spectacular breakthrough of Vinh Phuc from 29th position in 2020 to 5th position in 2021 with 69.69 points; Many component indexes such as Time Cost, Informal Cost, Access to Land, and Business Support Policy have been improved dramatically. To gain this achievement, there must be the constant efforts of the provincial leaders and the whole political system; the desire, frankness, dare to see the truth, overcome limitations, determined to "improve" the PCI component indexes.

Summary of PCI results of Vinh Phuc in the past 5 years

THE DETERMINATION TO MAKE THE “3 GOODS” GOAL BECOMES TRUE

If Quang Ninh - a locality holding the top position in the PCI rankings with the motto "5 real” for 5 consecutive years, from 2020, Vinh Phuc province has also set a goal of "3 good" including good and comprehensive legal environment, good technical infrastructure, and good business service. The drastic reform of administrative procedures is considered as one of the important breakthroughs, drastically implemented in the direction of reducing time and simplifying procedures. Many models and initiatives in administrative reform have been applied. The province has simplified 26 administrative procedures; provided online payment solutions through the National Public Service Portal in the form of scanning QR codes at counters, integrated various payment services of banks, e-wallets, and payment intermediaries; provided a chatbot system to automatically answer questions and concerns of people and businesses about administrative procedures on Zalo, Facebook and Vinh Phuc Provincial Public Service Portal. In the system, the Q&A scenarios are built specifically, in detail, easy to understand; There are hundreds of questions and answers made automatically through the system every week. The correct response rate is over 80%. Particularly in the field of Taxation, the province is committed to reducing the time for pre-checking for VAT refund at the taxpayer's headquarters to 40 working days and cutting administrative procedures to fulfill the tax payment obligation on state budget to less than 115 hours/year; digitalize and link electronic records of administrative procedures in the field of land between the tax office and the land registration office, the Department of Natural Resources and Environment. All records and papers are digitally signed when circulating between the two units, ensuring timeliness, publicity and transparency. People receive notices of financial obligations electronically and can pay make online payment right through the National Public Service Portal without having to go back and forth many times between the Land Registration Office - the tax authority - the Bank/ Treasury. In 2021, there were nearly 8000 tax payment transactions, with the payment amount reaching over VND 42 billion.

The province's hotline system is effectively established and operated in 5 languages, namely Vietnamese, Chinese, English, Japanese, and Korean. The program “Entrepreneurs’ Coffee” every Friday has solved problems and difficulties for 1,794 businesses on many issues such as site clearance, transportation, delivery, import and export procedures and value chain linkage problems.

Vinh Phuc is also the first province to establish and effectively promote the role of the assisting group of the Chairman of the Provincial People's Committee. Carrying the mission of establishing a good business investment environment and serving businesses well, the Support Team promptly grasped the problems investors encountered, actively advised the Provincial People's Committee to remove difficulties related to procedures for investment, land, site clearance and project operation in the fastest time. After 10 months of operation, via hotline 0211.35.35.678 and personal phone, the members of the Support Team received nearly 1,000 incoming calls. 97 groups of outstanding ideas and recommendations have been synthesized and have been directly guided and resolved by the Support team in a timely manner, bringing satisfaction to businesses.

“When the Covid-19 epidemic in the country and in the province is complicated, the application of epidemic prevention regulations makes many businesses, especially FDI enterprises, get difficulties in importing experts, transporting machinery and equipment, new production lines from abroad, the vaccination against Covid-19 for workers…. Receiving information that Northstar Co., Ltd., located in Khai Quang industrial park, is facing difficulties in this regard, the Support team advised the Chairman of the Provincial People's Committee Le Duy Thanh to directly meet and listen to the business report on the operation situations and difficulties that the business is facing and needs the support of the province to put the project into operation as committed. Just a few days after the meeting between the Chairman of the Provincial People's Committee and the business, a satisfactory answer was given. The Provincial People’s Committee issued a document guiding the isolation of foreign experts; arranged hotels and high-class resorts as isolation places for experts and foreigners; proactively seeked out a vaccine source for Covid-19 and arranged workers and employees in the enterprise as one of the priority subjects for vaccination”, said Ms. Tran Huyen Trang, deputy head of the Support Team of the Chairman of the Provincial People's Committee.

The frankness, demand, and reform efforts have brought Vinh Phuc back to the top in the PCI race

Looking back at 2020, Vinh Phuc's PCI results ranked 29th out of 63 provinces and cities with 63.84 points, down 2.91 points and down 12 places compared to 2019, failing to reach the set target of being in Top 10 nationwide. Of the 10 component indexes, there are 5/10 indicators that decrease in points and decrease in rank, only 3/10 indexes increase points and rank. 9/10 indicators did not meet the planned target, in which, the Land Access Index ranked low and has not been improved for many consecutive years (ranked 61/63), the Supporting Services index ranked enterprises ranked 59/63, Informal Costs index ranked 43/63 provinces and cities; other indicators, although there was an improvement in scores or rankings, still did not reach the planned target.

The desire, dare to look directly at the truth of the provincial leaders in improving the quality of the PCI's component indexes is clearly demonstrated through the organization of in-depth analysis conferences and discussion of measures to improve the quality of the PCI shortly after the 2020 PCI results were released. Proactively and actively improving the investment environment and enhancing competitiveness at the provincial level, Vinh Phuc has focused on implementing Resolution 02 of the Government on continuing to perform key tasks and solutions to improve the environment. business school, improving national competitiveness in 2021 and Directive No. 11/2019 of the Prime Minister on urgent tasks and solutions to remove difficulties for production and business, and ensure social security in response to the Covid-19 epidemic.

“Turn danger into opportunity” – The secret for Vinh Phuc to effectively control the epidemic, become a safe destination for all investors

The years 2020, 2021 with an unusual context due to socio-economic activities seriously affected by the Covid-19 pandemic have acted as a "test" for Party committees and provincial governments at all levels of Vinh Phuc Province. Faced with the negative impact of the epidemic, Vinh Phuc builds an adaptive economic growth scenario according to each level of the epidemic, putting the health and life of the people first with the goal of putting the people at the center, building a firm stance in the hearts of the people. The Standing Board of the Provincial Party Committee directs to change the anti-epidemic strategy in each phase, from investigation, tracing, testing to making strategy of encirclement, blockade, preemption and interception; Early detect, zone, and quickly isolate the Covid-19 cases by increasing testing capacity. With the motto of epidemic prevention early, from afar, not to let the epidemic enter the industrial park, Vinh Phuc requires 100% of enterprises in the industrial park to test for Covid - 19 for workers; established business support groups, highly focused on helping more than 8,800 businesses in the area regularly update the content of instructions on Covid-19 epidemic prevention and control. The province advocates strictly controlling the source of infection, cutting off infection sources from outside entering the area at the same time as maintaining stable production and business activities, but must strictly comply with regulations on epidemic prevention; setting up 2 dormitories with a capacity of more than 1,000 beds in Vinh Yen city and Phuc Yen city for foreign workers to stay for free; create favorable conditions for experts of enterprises to enter the country on time, without disrupting production and business activities. With the companion of the province, during the most difficult time, the production and business of thousands of enterprises remained stable. No workers lost their jobs.

From October 2021, implementing Resolution 128 of the Government, Vinh Phuc is the first province in the country to announce the epidemic level. Anti-epidemic methods also changed, shifting from administrative orders to proactive and flexible adaptation; each agency, unit, enterprise and people must self-control and protect themselves; The province quickly covered vaccines for the entire population, in which, priority was given to workers in industrial zones.

In the first months of 2022, when the Covid-19 epidemic continued to develop complicatedly, affecting production and business, Vinh Phuc promptly supported businesses in labor recruitment and market search; requested localities to thoroughly and synchronously implement solutions to limit the spread of the disease, and at the same time, urgently direct to remove difficulties for businesses, namely allowing F1 cases that have been vaccinated with 2 doses of vaccine, having no symptoms of infection and negative test for Covid-19, go to work, helping production activities not be interrupted, no businesses have to close or stop production; Many enterprises also expand production, increase investment scale, create more jobs for workers.

Detailed results of 10 PCI component indexes of Vinh Phuc in 2021

These efforts have helped Vinh Phuc improve scores and rankings in a variety of sub-indexes. The Time Cost index gets 8.46 points, increasing by 0.13 points compared to 2020, ranked the 3rd nationwide; Informal expenses index gets 8.05 points, increasing by 1.8 points compared to 2020, ranked the third in the country. 2 indicators, equal competition and land access together ranked 7th in the country, in which, the land access index gets 7.56 points, increasing by 1.76 points compared to 2020. According to the 2021 PCI results, 93.9% of businesses in Vinh Phuc rated their administrative staff to work effectively (6th highest nationwide); 93.2% of enterprises rated these officers as having a friendly attitude (2nd highest in the country), and 89.5% of enterprises agreed that in general, the time to carry out administrative procedures in the province is shorter compared with regulations - ranked the 3rd best achievement in the country.

PCI has now become one of the important metrics for businesses and investors to evaluate investment opportunities in provinces and cities. At the same time, this is also an indicator that shows the trust, support, and attachment of businesses to the locality. It can be seen that the PCI "race" among localities across the country is getting more and more exciting. This is also the reason why Vinh Phuc always aims to go further, continuing to improve the nature and effectiveness of the PCI index.

Realizing the commitment to accompany, listen and effectively solve the difficulties of enterprises, Vinh Phuc continues to become the berth of many large projects. Many investors said that they are very impressed with Vinh Phuc province's government when it always supports investors and creates favourable conditions to accelerate project implementation. The dynamism, pioneering spirit, responsible working attitude and the ability to effectively solve practical problems of all levels of government in Vinh Phuc are also highly appreciated by the business community.

INVESTORS’ STORIES

In October 2021, Toto Corporation's Faucet Factory Project of Japan with a total investment of USD 100 million was granted the investment registration certificate by the Chairman of Vinh Phuc Provincial People's Committee Le Duy Thanh in the presence of Mr. Prime Ministers of the two countries during the visit of the Japanese Prime Minister to Vietnam.

After only a short time of being granted the investment certificate, a modern factory in Thang Long Vinh Phuc industrial park has gradually formed. Toto Group is trying to complete the factory and put it into production by the end of 2022, expected to create jobs for nearly 1200 employees.

With 4 factories operating in Hanoi and Hung Yen, Japan's leading sanitary ware manufacturing group decided to choose Vinh Phuc as the next stop in its business development plan in Vietnam. . The open investment environment, the dynamism and pioneering of the provincial leaders, the attention and thoughtful support for businesses by the authorities at all levels, and the complete infrastructure of the industrial park are the compelling reasons for this choice.

Our project this time was honored to be awarded the certificate during the visit of the Prime Minister of Japan in Vietnam. Since the project's inception, we have received a lot of support from the functional sectors, especially the dedicated guidance when doing the investment registration procedures, the procedures related to the environment. We feel grateful for this.”

Mr. Hiroyuki Tahara
Deputy General Director of Toto Vietnam Company Limited.

Toto is one of thousands of FDI projects in Vinh Phuc that has been quickly deployed from the stage of granting investment certificates, assessing environmental impacts to completing procedures for business registration, construction permits, and construction permits. coming into operation soon. In 2021, there are 68 FDI projects with total newly and increased investment capital reaching over 1 billion USD and 43 DDI projects with a total investment capital of more than 21,800 trillion VND. Especially, in November 2021, during Prime Minister Pham Minh Chinh's visit to Japan, Secretary of Vinh Phuc Provincial Party Committee Hoang Thi Thuy Lan presented a Memorandum of Understanding on investment cooperation between Vinh Phuc province and SOJITZ Group, Japan and the Group's investment partners in Vietnam on the investment and development of the project to renovate the farm, convert livestock from pigs to beef cattle, build slaughter, processing and preservation facilities, distributed in Tam Dao district, Vinh Phuc province with a total investment of over 500 million USD.


“We decided to chose Vinh Phuc to build the largest-scale factory ever is because the province has a favorable geographical position, near the airport, convenient transportation, synchronous infrastructure, and many Japanese investors. Besides, the province has abundant human resources; The leader of the province is always interested, ready to share, and promptly remove difficulties and obstacles for businesses, especially in the context of the Covid-19 epidemic, the province has not let any businesses stop operating, ensuring commodity supply chain circulation. As the 45th Japanese project to invest in Vinh Phuc, it is expected that in the second quarter of 2022, Ojitex will start construction and put the factory into operation in mid-2023.”

Mr. Kunihiko Tomninaga
Director of Ojtex Hai Phong Company Limited

“We know Vinh Phuc through Korean investors and through investment promotion business trips of provincial leaders in Korea. The first time we set foot in Vinh Phuc, we clearly felt that this would be the place where LIFTEC would develop with an investment project to build industrial park infrastructure in Phuc Yen city. Especially, from this cooperation, LIFTEC Vietnam will expand to other fields that Vinh Phuc is prioritizing to attract such as education, healthcare, tourism, and services."

Mr. You Kyung Nam, Chairman of the Board of Directors, LIFTEC Vietnam Company Limited


Vinh Phuc has been improving administrative procedures as well as the investment and business environment, removing difficulties and obstacles for businesses and investors. If there are any difficulties in the investment process, businesses and investors can meet and discuss directly with the heads of the province and the directors of departments, agencies and sectors to promptly solve”. – Chairman of Vinh Phuc Provincial People's Committee Le Duy Thanh has repeatedly emphasizd this content. This is also the commitment of the province in accompanying investors, considering "investors coming to Vinh Phuc are citizens of Vinh Phuc, the success of investors is the success of the province". 

 

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