The annual report, the 12th of is kind so far, gathers feedback and assessments the community on the business environment, economic management quality and administrative reform efforts of the municipal and provincial governments across Vietnam.
VCCI President, Dr. Vu Tien Loc said that PCI collects opinions of private firms, with an aim to promote their growth, especially micro-, small- and medium-sized enterprises, while creating jobs for people.
US Ambassador to Vietnam Ted Osius commented that PCI report is important to investors and businesses interested in Vietnam.
The collection and analysis of data for the report show that competition helps improve operation effectiveness, he said, adding it will also promote trade affiliation as well as economic growth and prosperity.
According to the report, the northern province of Quang Ninh came second with 65.6 points, followed by Mekong Delta Dong Thap province with 64.96 points, southern Binh Duong province with 63.57 points, Vinh Long, 62.76 points and Lao Cai, 63.49 points.
Notably, Hanoi managed for the first time in many years to exceed the 60 point level and ranked 14th.
Dau Anh Tuan, head of the Legal Department of the VCCI, commented that the quality of governance of cities and provinces has been improving.
Compared to 2015, bright signs have been seen in various aspects, including dynamism and pioneering of the provincial administrations, informal cost, labor-force training, equal competition and business registration.
However, administrative procedure burden and land access have yet to be solved while legal environment is yet safe, posing obstacles for many domestic businesses, he said.
The PCI report 2016 has also reflected the rising trend of household businesses, as 65 percent of the firms enjoyed profit, the highest figure in the recent five years.
The capital scale of a firm averaged a record high of VND 18.1 billion in 12 years, doubling that in 2006, while the ratio of firms recruiting more employees also rose to 13 percent in 2016 from 12 percent in the previous year.
The business community also showed their optimism for business prospect as 48 percent of them revealed that they will expand operation in the next two years.