Hanoi, May 16, 2026 – The Europe Today: The Vietnam Chamber of Commerce and Industry (VCCI) on May 15 officially unveiled Việtnam’s first-ever Business Performance Index (BPI) together with the newly redesigned Provincial Competitiveness Index 2025 (PCI 2025), marking a major milestone in the country’s ongoing economic reform and private sector development agenda.
The announcement was made as part of the Việt Nam Private Sector Economic Report 2025 at a time when the country is commemorating the first anniversary of Resolution 68-NQ/TW on private sector development. Việt Nam is simultaneously undertaking three historic reforms, including the reduction of provinces and cities from 63 to 34, the transition toward a two-tier local government model, and the institutionalisation of strategies aimed at positioning the private sector as the country’s leading economic driver.
The comprehensive report was compiled through surveys involving 3,546 domestic private enterprises, 586 foreign-invested enterprises (FDIs), and 1,001 household businesses across 34 provinces and cities, making it one of the most extensive assessments of Việt Nam’s private sector in recent years.
According to the inaugural BPI assessment, Ho Chi Minh City, Hanoi and Quảng Ninh emerged as the country’s top-performing localities. The national median BPI score stood at 4.2 points, indicating significant room for improvement across the nation.
The BPI evaluates 23 indicators focusing on two key dimensions — the development level of the private sector and innovation capacity. Meanwhile, after more than two decades of implementation, the PCI has now entered a new phase with the official launch of PCI 2.0.
The revamped PCI 2.0 framework consists of nine component indices and 98 indicators designed to provide a more comprehensive evaluation of local business conditions, including market entry, access to resources, transparency, informal costs, and legal institutions.
VCCI Chairman Hồ Sỹ Hùng stated that the combination of PCI and BPI creates a more holistic governance assessment system by measuring not only reform efforts but also the actual outcomes experienced by businesses.
He noted that Việt Nam’s private sector has moved beyond a defensive phase and is now focusing on strengthening internal capacity for sustainable growth. However, challenges related to market access, financing, and policy transparency continue to hinder progress.
“To achieve the target of two million businesses by 2030, policymaking must shift from a management-oriented approach toward one centered on partnership and competitiveness enhancement,” Hùng stressed.
One of the most notable changes introduced in PCI 2025 is the removal of the traditional numerical ranking system. Instead of ranking provinces from 1 to 34, the new framework groups localities into six governance quality categories, listed alphabetically within each group.
The five localities recognised in the highest governance quality category under PCI 2025 are Bắc Ninh, Đà Nẵng, Hải Phòng, Phú Thọ and Quảng Ninh.
According to Đậu Anh Tuấn, the new grouping approach reflects a broader shift in evaluation philosophy, focusing less on competition for rankings and more on identifying governance bottlenecks and improving institutional quality.
Among the leading provinces, Bắc Ninh excelled in constructive governance and administrative reform, while Đà Nẵng achieved the country’s highest score for improving market entry conditions. Hải Phòng demonstrated consistent governance quality across multiple dimensions, and Phú Thọ stood out in resource accessibility.
Quảng Ninh further strengthened its reputation by ranking among the Top 5 for governance quality under PCI 2025 and simultaneously among the Top 3 for private sector performance under the BPI.
Chairman of the Quảng Ninh Provincial People’s Committee Bùi Văn Khắng said the province considers PCI not as a final destination but as a driving force for continuous innovation and reform.
Despite encouraging indicators, the report also highlighted several pressing challenges facing Việt Nam’s private sector. Around 60.2 per cent of businesses reported difficulties in finding customers — the highest level recorded in the past five years — while 75.5 per cent of firms said they could not secure loans without collateral.
The report also underscored concerns regarding policy predictability, with only 6 to 8 per cent of businesses stating they could anticipate policy changes. Household businesses are also facing mounting pressure, with 81.5 per cent reporting declining revenues.
Nevertheless, the report showed positive signs of recovery. By the end of 2025, Việt Nam had more than one million active enterprises, representing a 6.6 per cent year-on-year increase. Combined with approximately 6.1 million household businesses, the private sector now employs around 26 million workers, accounting for over half of the country’s total employment.
Notably, 297,500 new businesses entered the market in 2025, marking a 27.4 per cent increase compared to 2024 and the highest figure ever recorded. Additionally, 85.7 per cent of businesses reported maintaining or expanding operations, signaling a gradual restoration of business confidence after years of economic challenges.
