Bac Giang province strengthens institutional reform capacity, improvement of investment and business environment

Updated: 16:40, 07/05/2025

BAC GIANG - On May 6 in Hanoi, the Vietnam Chamber of Commerce and Industry (VCCI) announced the 2024 Provincial Competitiveness Index (PCI) rankings. Bac Giang proudly ranked fourth nationwide with 71.24 points, maintaining its position for the second consecutive year. It was also listed among the top three provinces showing the most significant PCI score improvements over the past 20 years.

Following the announcement, Nguyen Viet Oanh, Chairman of the Bac Giang People's Committee granted an interview to Bac Giang Newspaper about the results.

The Chairman of Bac Giang provincial People’s Committee Nguyen Viet Oanh inspects the Bac Giang City International Logistics Center project.

Bac Giang continues to rank among the top provinces nationwide in the PCI. What does this achievement mean for the province’s goal of building a facilitating and service-oriented government?

Being recognized among the top 10 provinces with the best investment environment in 2024—and among the top three in PCI improvement over two decades—is a meaningful acknowledgment of the relentless efforts by Bac Giang’s entire political system.

It demonstrates our commitment to institutional reform, economic governance and business environment improvement. This ranking is not merely a number—it reflects the success of a mindset focused on a government that serves and supports businesses and citizens.

The result is especially important as the province transitions to a modern, digital governance model centered on people and enterprises.

It affirms that our “facilitating and service-oriented government” model is on the right track and serves as strong motivation for public officials to enhance their responsibility, ethics and performance.

What were the key bottlenecks Bac Giang identified and addressed to achieve this PCI improvement?

In reviewing PCI performance, we identified three major bottlenecks:

First, administrative procedures remained complicated and disconnected, causing delays and extra costs for businesses, especially in investment licensing, land access, taxation, and treasury procedures.

Thanks to the accurate identification of bottlenecks and the implementation of synchronous and focused solutions, Bac Giang's PCI not only improved its score, but more importantly, created a substantial change in the province's investment and business environment.

Second, transparency in land use planning, investment project listings and regulatory procedures was limited, undermining business confidence and long-term planning.

Third, informal costs persisted, placing hidden pressure on businesses and negatively impacting market entry and unofficial cost indicators.

To address these, the provincial authority launched comprehensive reforms from the provincial to grassroots levels, mandating each department and locality to streamline procedures, publish planning data and proactively engage with businesses. Specific PCI sub-indices were assigned to relevant agencies to resolve bottlenecks effectively.

We also introduced a real-time feedback and monitoring system, including the Department and District Competitiveness Index (DDCI). Annual independent DDCI surveys now assess agency performance based on business feedback. These results are integrated into emulation and commendation processes, directly tying leadership accountability to improvement efforts.

By accurately identifying and tackling root issues through coordinated action, Bac Giang has not only improved its PCI score but more importantly, created tangible improvements in the investment environment.

Some say PCI improvement is a continuous, long-term reform process rather than a race for rankings. What’s your view on the sustainability of Bac Giang’s reform efforts?

Bac Giang’s PCI breakthrough over the past 20 years represents more than a statistical success—it’s a strategic milestone for the province’s socio-economic development. It reflects three key values:

First, it marks institutional maturity and governance capacity. Bac Giang is no longer relying solely on natural resources or abundant labor.

We are shifting towards a development model based on institutional reform, government efficiency and a quality business environment—critical foundations for attracting strategic investors in high-tech, green industry and smart urban development.

Second, it expands the province’s investment appeal and regional competitiveness. Amid fierce competition for domestic and foreign investment, a transparent and reform-oriented business environment gives Bac Giang a distinct edge.

The province is emerging as a new industrial hub in northern Vietnam, attracting major groups from Japan, South Korea, China and Singapore among others.

Third, it sets the stage for higher-quality growth—economic development linked to improved quality of life and sustainability. A good investment climate fosters infrastructure development, talent cultivation and business support services. It also generates stable revenue for reinvestment in education, healthcare, digital transformation and social welfare.

This outcome is both a recognition of our reforms and a strong message to investors—Bac Giang is committed, open and ready to act in this new era.

Amid major restructuring efforts such as administrative unit consolidation and provincial-level merger preparation, how will Bac Giang sustain its investment climate momentum and continue improving service quality?

We’ve set out a clear action plan with three key priorities:

First, institutionalize reforms and monitor implementation quality. We will review all PCI sub-indices from 2024, analyze unmet targets and enhance accountability mechanisms to ensure top-down commitment and avoid “hot at the top, cold at the bottom.”

Second, deepen improvements in sustainable sub-indices such as transparency, informal cost reduction, business support services and legal institutions. We’ll continue leveraging technology and digital transformation in public service delivery and governance to ensure businesses have 24/7 access to accurate, transparent information, minimizing hidden risks and costs.

Chairman of the Bac Giang provincial People's Committee Nguyen Viet Oanh (3rd from right) visits the production line at Hana Micron Vina Factory.

Third, strengthen the “pro-business government” model and anticipate future trends. Beyond serving existing businesses, we aim to build an ecosystem that attracts high-tech, clean industries and smart urban development. We are also designing selective incentive policies aligned with global investment shifts.

As competition intensifies, continuous reform, active listening and business partnership are the only paths for Bac Giang to maintain growth and enhance its profile among domestic and international investors.

What message would you like to share with investors and businesses looking at Bac Giang?

First, I’d like to sincerely thank all domestic and international businesses and investors who have trusted and supported Bac Giang’s development. Our achievements are a collective result of your efforts, especially in overcoming recent global economic challenges.

Moving forward, Bac Giang’s highest goal is fast, sustainable and inclusive development—with businesses at the core. We are committed to further improving the investment climate, streamlining administration, enhancing competitiveness and maintaining open, constructive dialogue with businesses under the principle: “Business success is government success.”

We are investing heavily in economic and social infrastructure, especially transport connectivity, industrial parks, urban areas, logistics and support services. We also prioritize high-quality workforce development to boost productivity. These efforts lay the groundwork for selective investment attraction, particularly in high-tech, green and environmentally friendly sectors while promoting sustainable values.

Bac Giang warmly welcomes investors to explore opportunities here. More than just capital, we seek long-term, mutually beneficial partnerships. The provincial government will always stand by the business community and create the best conditions for stable and successful operations.