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| Hue City securing 6th place in the 2024 PCI ranking. Photo: VCCI |
PCI – A “mirror” reflecting the quality of governance
In recent years, Hue has made impressive progress, climbing from 17th place in 2020, to 8th place in 2021, 6th place in 2022, 8th place in 2023, and returning to 6th place in the 2024 PCI rankings. This is not a matter of chance, but rather the result of a strategic transformation process, supported by a series of comprehensive reforms, ranging from streamlining administrative procedures and promoting robust digital transformation, to enhancing transparency and reducing informal costs for enterprises. In particular, the development of e-government – smart city models through the platform of Hue-S has played a key role in bridging the gap between the government and citizens – enterprises, contributing to establishing a more user-friendly, efficient, and timely administrative environment.
Notably, the city has strongly promoted the application of e-government – smart city models, with Hue-S serving as a typical example of effective interaction between citizens – enterprises and local authorities, thereby fostering a digital-based administrative space that is friendly, efficient, and responsive.
Civil servants – the “flywheel” driving reform
A key highlight in Hue City’s success in improving its business and investment environment lies in the shift in mindset and capacity of its civil servants. Moving away from the traditional “command-and-control” or “ask-and-give” mentality, many departments, agencies, and local authorities have developed a “service-oriented administration” approach – one that entains getting close to the people, understanding the market, being well-informed, innovative, and willing to take responsibility.
Notably, at several departments, agencies, and district-level governments, there has been the emergence of civil servants who proactively address challenges faced by investors, listen to feedback of enterprises, and view citizen satisfaction as a benchmark for public service performance. A growing cohort of young civil servants – technologically savvy, responsible, and committed to integrity – is gradually shaping a new image of the city’s administrative system. Alongside the determined leadership of the city’s authorities in managing socio-economic development as well as developing the business and investment environment, these changes have laid a solid foundation for Hue City’s recent socio-economic progress.
However, several limitations still need to be acknowledged frankly. Some civil servants remain passive, lack cross-sectoral coordination skills, and have yet to fully embrace the mindset of “partnering with enterprises.” In certain areas such as land management, construction, and strategic investment environment, the avoidance of responsibility, reluctance to innovate, or tendency to “wait for directives” continue to hinder progress. These shortcomings are also reflected in Hue’s sub-index performance related to land access, informal costs, and transparency.
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| Investing in port infrastructure serving as a catalyst for attracting investment. Photo: Dinh Hoang |
The moment for transformation
Having attained the status of a centrally-governed municipality, Hue now stands at a turning point for development. In this new context, the transition to a two-tier administrative model at the local level demands a streamlined government structure staffed with versatile civil servants – those equipped with economic management skills, market acumen, investor insight, and professionalism in all public interactions.
Therefore, the city must continue to review and assess the capacity and ethics of its civil servants – particularly in administrative areas related to investment, construction, planning, and resource management. Transparency in document processing, full application of digital transformation, and the improvement of staff competency in citizen and enterprise engagement will be key to “combating internal inertia” and sustaining trust among the business community. At the same time, the city’s human resource development strategy must stay focused: recruiting talented individuals, creating mechanisms to retain top performers, and most importantly, fostering a public service environment that values dedication and integrity.
Hue’s continued presence in top 10 of PCI in 2024 is a commendable achievement, yet it also presents new challenges. It is essential to keep moving forward and make a breakthrough in the business and investment environment, thereby transforming from a cultural destination into a hub for innovation, technology, and high-end tourism in Central Vietnam. To realize this vision, beyond sound planning and modern infrastructure, the decisive factor still lies in a team of civil servants with both competence and commitment – those who act with “vision and integrity” for the city’s advancement. This dedicated human resource will be Hue’s most sustainable competitive advantage during the journey ahead.