While Vietnam and businesses are moving towards sustainability, hubs of environmental concerns remain in attractive investment destinations, requiring a change in order to become competitive.

The 2023 report of the Provincial Governance and Public Administration Performance Index (PAPI) has stirred significant interest in Vietnam's governance landscape. Against a backdrop of ongoing efforts to enhance provincial administration and public service delivery, this release is particularly noteworthy.

Mr Kenneth Atkinson, Founder and Senior Board Adviser of Grant Thornton Vietnam, along with other experts in the market, has commented on the report's findings.

"In terms of key findings, the report highlights a significant decline in transparency in local decision-making in 2023. However, it also notes an improvement in the control of corruption in the public sector. It identifies the top 10 issues of greatest concern for citizens in 2023 and examines trends over time. The report also explores the drivers of internal migration and the effects of climate change-related disasters on migration motivations.

The Provincial Governance and Public Administration Performance Index (PAPI), a trusted instrument for evaluating Vietnamese provincial effectiveness, recently unveiled its 2023 report. 

The report concludes with policy implications based on the findings and identifies gaps that need to be addressed towards 2026. It provides a comprehensive analysis of provincial performance and offers recommendations for improving governance and public administration in Vietnam.

Ten of the most concerning issues were identified based on the PAPI research and the perspectives of the surveyed population. For example, the impact of climate changed-related disasters on migration dynamics can be significant. Internal migration in Vietnam is driven by various factors, including economic opportunities, infrastructure, and education. However, climate change-related disasters can have impacts on this by causing economic decline, loss of livelihoods, and degradation of the living environment.

The report also highlights some concerns in the areas of transparency and corruption, which the government is aware of, but perhaps addressing these further could be expedited."

Read more at: https://vir.com.vn/where-is-environmental-governance-in-fdi-attraction-110195.html

Source: Vietnam Investment Review