SURVEY OF DOMESTIC FIRMS AND THE 2019 PROVINCIAL
1.5 INFRASTRUCTURE INDEX 2019
In PCI 2019, we assembled the Infrastructure Index based on data collected through the PCI-DDI survey and published statistics. The Infrastructure Index is separated from the PCI assessment as infrastructure is beyond provincial authorities’ purview.
For this report, we retain the methodology developed in 2008 that is comprised of four subindices measuring the quality of four fundamental business-related infrastructure areas.
These include: 1) industrial zones/clusters; 2) roads and transportation; 3) basic utilities; and 4) accessibility and application of IT.
Figure 1.13 demonstrates the 2019 Infrastructure Index results. Binh Duong topped this year’s ranking and has been the champion for many consecutive years. Since the re-establishment of Binh Duong in 1997, the province has focused on developing an integrated transportation system and an industrial zone infrastructure associated with urbanization to create socioeconomic dynamics. With 29 industrial zones, of which many are high quality, Binh Duong has attracted many big companies and multinational corporations.26 Binh Duong, Bac Ninh, Dong Nai, Thai Nguyen, and Bac Giang made up the Top 5 in the Infrastructure Index and also are major industrial hubs in the country. Soc Trang, Binh Thuan, Cao Bang, Quang Binh, and Bac Lieu were among the provinces rated as having limited infrastructure.
26 Binh Duong: A highlight in infrastructure development associated with smart urban development, 6/10/2018, <https://
baodautu.vn/binh-duong-diem-sang-xay-dung-co-so-ha-tang-gan-voi-phat-trien-do-thi-thong-minh-d88990.html>
Figure 1.13 The Infrastructure Index 2019
0 10 20 30 40 50 60 70 80 90 100
Soc Trang Binh ThuanCao Bang Quang BinhDak NongDien BienBac LieuNghe AnBac KanPhu YenGia Lai Ninh ThuanKien Giang Tuyen QuangThai NguyenQuang NamQuang NinhBinh PhuocQuang NgaiBinh DuongKhanh HoaThanh HoaDong ThapTien GiangHai PhongLam DongHau GiangHai DuongVinh PhucVinh LongBac GiangNam DinhHung YenQuang TriBinh DinhNinh BinhLang SonThai BinhKon TumHoa BinhDong NaiBac NinhHa GiangTay NinhAn GiangLai ChauDa NangTra VinhLong AnPhu ThoCan ThoDak LakBen TreHa NamYen BaiHa TinhCa MauLao CaiTT-HueSon LaHa NoiHCMCBRVT
Industrial Zones Roads
Energy/Telecom Internet
The quality of Vietnamese infrastructure continues to improve. The median score of the Infrastructure Index 2019 reached a new all-time high of 68.45 points, exceeding the 66.06 points recorded in 2018.
Table 1.6 A Sample of Province-Level Indicators of the Infrastructure Index over Time
Indicator Source Measure 2015 2016 2017 2018 2019
Quality of Industrial Zone/Cluster (% Good and Very Good)
PCI Survey Question: E2-5
Min 15.87 10.42 13.46 10.53 22.54
Median 39.51 40.91 46.38 46.67 50.00
Max 73.03 73.48 73.91 77.22 76.40
Correlation w/
Previous Year 0.85* 0.85* 0.77* 0.86* 0.74*
Quality of road (% Good
and Very Good) PCI Survey Question: E2-1
Min 20.19 23.86 23.00 24.24 29.06
Median 38.60 42.06 41.30 41.12 44.14
Max 77.27 79.81 80.43 77.13 80.00
Correlation w/
Previous Year 0.79* 0.76* 0.71* 0.74* 0.72*
Number of days with
blocked roads PCI Survey Question: E3
Min 2.76 2.68 1.96 1.76 1.20
Median 6.13 5.81 4.11 3.77 3.42
Max 97.70 192.25 6.06 11.42 7.38
Correlation w/
Previous Year -0.06 0.71* 0.22 0.58* 0.73*
Hours of lost power in the last month (Median number)
PCI Survey Question: E4-4
Min 0.04 1.00 3.00 3.00 3.00
Median 8.00 8.00 8.00 7.55 7.84
Max 15.91 16.00 11.87 10.75 9.60
Correlation w/
Previous Year 0.60* 0.56* 0.57* 0.57*
Percentage of
pre-informed power cuts PCI Survey Question: E4-3
Min 5.00 10.00 42.87 48.18 45.52
Median 47.28 50.00 57.08 65.06 57.84
Max 70.00 80.00 80.00 90.00 80.00
Correlation w/
Previous Year -0.14 0.31* 0.52* 0.89* 0.88*
Telecom quality PCI Survey Question: E2-2
Min 59.07 65.26 67.74 68.22 69.83
Median 75.00 76.84 78.17 81.08 82.57
Max 84.54 88.46 90.12 91.43 91.30
Correlation w/
Previous Year 0.49* 0.40* 0.43* 0.44* 0.56*
Telecom hours lost
(median) PCI Survey
Question:E5
Min 0.00 0.00 0.00 0.00 0.00
Median 0.12 0.01 1.00 0.00 0.00
Max 8.00 5.00 5.40 3.98 2.30
Correlation w/
Previous Year 0.45* 0.34* 0.06 0.36*
Good quality of Internet
supply (%) PCI Survey
Question: E2-6
Min 42.61 43.00 42.86 53.64 59.14
Median 53.27 57.02 61.76 64.42 70.13
Max 68.32 70.71 80.23 80.77 82.61
Correlation w/
Previous Year 0.55* 0.41* 0.56* 0.26* 0.29*
Figure 1.14 demonstrates the correlation between the quality of governance and infrastructure in 2019. There remains a close correlation across the 63 provinces. Consistent with the findings of the previous PCI surveys, PCI 2019 finds that provinces performing well in governance indicators tend to have higher quality infrastructure. Specifically, provinces appearing in the upper right quadrant are better in both governance and infrastructure than the median province.
In the lower left quadrant are provinces that have poorer governance and infrastructure than the median province, which means they must strive the most to address both infrastructure problems and governance challenges. Provinces in the upper left quadrant outperform the median province in terms of infrastructure but do not perform as well in governance. These provinces should be aware of the structural advantage trap. Lastly, the provinces situated in the lower right quadrant have to “conquer hardship” as they perform better than the median province in terms of their governance but face the obstacle of limited infrastructure.
Figure 1.14 Correlation between Quality of Governance and Infrastructure
Ha Noi Hai Phong
Da Nang
HCMC Can Tho
Thanh Hoa
Nghe An Ha Tinh
Quang Binh Quang Tri
TT-Hue
Quang Nam
Quang Ngai
Binh Dinh
Phu Yen Khanh Hoa
Dong Thap
An Giang
Tien Giang
Vinh Long
Ben Tre
Kien Giang Tra Vinh
Soc Trang Bac Lieu Ca Mau Binh Phuoc
Tay Ninh
Ninh Thuan
Long An
Quang Ninh
Hau Giang BRVT
Bac Ninh Binh Duong
Binh Thuan Dong Nai
Ha Nam
Hai Duong
Hung Yen Nam Dinh Ninh BinhThai Binh
Vinh Phuc
Bac Kan Bac Giang
Cao Bang Dak Lak
Dak Nong Dien Bien
Gia Lai Hoa Binh
Kon Tum Lai Chau
Lam Dong
Lang Son Lao Cai Phu Tho
Son La
Thai Nguyen
Tuyen Quang Yen Bai Ha Giang
60 65 70 75 80 85
2019 Infrastructure Index
55 60 65 70 75
2019 Weighted Provincial Competitiveness Index
r=.52*