VCCI releases PCI 2.0 report to measure Vietnam's business environment

The Vietnam Chamber of Commerce and Industry (VCCI) has released the 2025 Vietnam Private Sector Report and the Provincial Competitiveness Index (PCI), marking a significant methodological upgrade to PCI 2.0. This new framework shifts the focus from ranking provinces to diagnosing administrative quality and its impact on actual business growth and competitiveness.

The 2025 report incorporates feedback from 5,128 enterprises and business households across 34 provinces and cities. Notably, for the first time, 1,001 individual business households were included in the official survey. The updated methodology features nine component indices with 98 indicators, alongside the newly introduced Private Sector Efficiency Index (BPI), which utilizes 23 independent indicators.

Five provinces were identified in the ‘Good’ administrative quality group: Bac Ninh, Da Nang, Hai Phong, Phu Tho, and Quang Ninh. Bac Ninh led in constructive government and administrative compliance costs, while Da Nang led in market entry. Hai Phong ranked among the top 10 provinces in seven out of nine component indices. According to VCCI Chairman Ho Sy Hung, the transition to PCI 2.0 moves the index beyond a simple competition of rankings toward a diagnostic tool that helps local authorities identify bottlenecks and implement targeted improvements.