Vietnam private sector competitiveness index update

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

The updated methodology utilizes nine component indices with 98 indicators and introduces the Business Performance Index (BPI) to evaluate private sector effectiveness through 23 independent indicators. The 2025 survey included 5,128 enterprises and business households across 34 provinces and cities, marking the first time 1,001 individual business households were included in the official survey.

Rather than a simple ranking system, the new PCI categorizes administrative quality into six distinct groups. Provinces identified with outstanding administrative quality include Bac Ninh, Da Nang, Hai Phong, Phu Tho, and Quang Ninh. VCCI Chairman Ho Sy Hung noted that the transition to PCI 2.0 aims to provide a diagnostic tool that helps local authorities identify bottlenecks and implement targeted improvements.