Vì sự phát triển của Việt Nam
26 Jul 2024
In cooperation with Saigon Entrepreneur Magazine, Institute for Vietnam Initiatives (IVI) has published the first Provincial Business Competitiveness Report, with a focus on businesses in Ho Chi Minh City.
“Provincial Business Competitiveness Report: Ho Chi Minh City 2023” highlights that the performance of the business sector in Ho Chi Minh City, as well as the city’s overall economic health, is declining compared to the national average. Specifically, HCM city does not have any enterprises listed among the 10 largest in Vietnam according to the VNR500 ranking. The market capitalization of listed companies also shows a clear downward trend. Furthermore, indicators of labor productivity and per capita income in Ho Chi Minh City have decreased compared to other cities in the region. The decreased competitiveness of Ho Chi Minh City businesses is due to several factors. These include unclear and ineffective operating strategies of individual businesses, and a modest level of industry cluster development that lacks mutual support.
To enhance the competitiveness of businesses in Ho Chi Minh City, the report suggests that firstly, the responsibility lies with businesses to develop a clear business strategy and vision. Additionally, industry associations and representative organizations need to redefine their key roles in providing information about market trends, technological advances, and industry development. Financial institutions, particularly commercial banks, should act as focal points with industry associations to create an ecosystem that supports credit capital for businesses. On the government side, Ho Chi Minh City should establish mechanisms and provide support for effective cooperation and coordination among organizations. The report also recommends that the city allocate budget resources to support these organizations in providing shared services.
Provincial Business Competitiveness Report: Ho Chi Minh City 2023 was drafted within the framework of the Provincial Business Competitiveness Forum 2024 (PBCF 2024). PBCF 2024 aimed to provide valuable information to governmental agencies, businesses, and business associations to help build a highly competitive business environment, improving the city’s overall welfare. The forum offers a unique perspective on local competitiveness, based on the rationale that sustainable provincial development depends not only on the government’s operational capacity and the business environment but also on the competitiveness of individual businesses.
From 2025 onward, the PBCF and its reports will be done based on data analysis from 63 provinces and cities in Vietnam, supplemented by surveys of relevant agencies, business associations, and entrepreneurs, as well as in-depth analyses of selected localities.
You can read our “Provincial Business Competitiveness Report: Ho Chi Minh City 2023” đây).