Business must pay unofficial cost

Though the provincial PCI ranking was increased in 2020, it scored only 0.44 point higher than the national medium one. There were 5 indicators with lower score, 3 with slightly increased score and 2 indicators with qualified score as the set target (time cost and fair competition).

The production line at Three Star Sport Joint Stock Company in Tan My commune (Bac Giang city).

Noticeably, the transparency scored 5.39, down 1.46 against last year and rank 52 out of 63 provinces and cities (down 36 places comparing to 2019), which was the lowest ever ranking for this indicator for 10 year. This drop showed the setback in the efforts to improve the business environment and PCI in the province.

Besides, the unofficial cost in 2020 scored 6.47, up 0.42 score over last year with unchanged ranking of 38 out of 63 provinces and cities. It is a popular situation for the business to pay unofficial cost.

56 percent of reflection proved the harassment when handling the administrative procedure for the enterprises while 8 percent of the firms must pay more than 10 percent of their revenue for the unofficial cost. Moreover, 55 percent of the businesses considered that they got result not as good as expectation in spite of paying for the unofficial cost. 45 percent of the enterprises paid unofficial cost when implementing administrative procedure relating to land issue.

Analyze to clarify the reason for score increase and decrease

According to the Department of Planning and Investment (DoPI), several component indicators of PCI were low because the organizations and agencies in charge could not play their role.

The exchange among state authorities, business and investor was not regular and effective. The inconsistency still existed in some organizations and agencies when handling the difficulties and obstacles for business and investors...

The production at Bac Giang LGG Garment Coporation Joint Stock Company (Lang Giang district).

DoPI Vice Director Nguyen Cuong judged amid the general situation of down score recently, the leading provincies continued creating breakthrough to gain higher score which proved for a big balance of business environment improvement. Unless the province applies drastically method to improve the business environment in the upcoming time, the provinces in lower group will quickly pass over then Bac Giang can not secure current ranking or earn higher place.

Besides, with the orientation to focus on industrial and service development in the future, the provincies in capital region (except Hanoi) are the main competitors of Bac Giang in attracting investment for industrial and service development. Thus, the province must quickly improve PCI and business environment to avoid becoming basin area in business environment.

At first, the DoPI proposed the provincial People’s Committee to instruct the departments, sectors and agencies to early evaluate and analyze to clarify the reason for score decrease and increase in several component indicators in charge so as to define the responsibility of the relevant collective and individual.

In May, a conference will be held to analyze the component indicators for PCI 2020 and solution to enhance PCI 2021.

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