Vietnam’s two biggest cities, Hanoi and Ho Chi Minh City, dropped in the Provincial Competitiveness Index of 2010, which was announced in Hanoi on March 16.

Danang continues ranking the first in the PCI

Hanoi fell 10 levels, now standing at the 43rd among 63 cities and provinces nationwide, and Ho Chi Minh City dropped seven levels to the 23rd.

These cities are all big urban areas with strong development of infrastructure, but are ranked at the bottom of the list in terms of land access, with Ho Chi Minh City taking the rank of 62nd and Hanoi at 63rd.

The country’s third largest city, Haiphong, also slipped 12 levels from its 2009 ranking.

Meanwhile, the central city of Danang held its position as the best performer for the third year in a row, followed by Lao Cai and Dong Thap provinces.

Mekong Delta localities have continued witnessing improvements in the quality of economic management. The region accounted for nine of the 22 provinces and cities given "excellent" or "high" rankings in the 2010 PCI.

The 2010 PCI survey carried out by the Vietnam Chamber of Commerce and Industry (VCCI), the 6th of its kind in Vietnam, represents the views of 7,300 private Vietnamese enterprises and 1,000 with foreign investment. The ranking is based on nine aspects, including land access and security of tenure, transparency and access to information, ease and time taken for regulation compliance.

VCCI Deputy Secretary General Tran Huu Huynh was cited by Voice of Vietnam Radio as saying that although Vietnam’s business environment has improved, there still remain challenges facing the country. The PCI survey is a useful tool to help localities work out effective action plans for development.