A new provincial business environment index introduced for agricultural cooperatives

On November 27, the Department of Cooperative Economy and Rural Development under the Ministry of Agriculture and Environment, in coordination with the Institute of Strategy, Policy on Agriculture and Environment, held a consultation workshop on the results of developing the Provincial Cooperative and Agricultural Business Environment Index (PCGI).

The PCGI is designed to establish a dedicated monitoring and evaluation tool for the business environment of the agricultural collective economy sector - where most members are farmers who are highly vulnerable to market fluctuations and climate-related risks.

The index consists of nine component groups and 48 sub-indicators, reflecting two key dimensions: The internal capacity of cooperatives, including organization, finance, governance, market access, and innovation capacity; and the external enabling environment, such as institutional quality, infrastructure, public services, support policies, and the governance capacity of local authorities.

According to the Institute of Strategy and Policy on Agriculture and Environment, the index has been piloted in seven provinces representing seven ecological regions nationwide. The pilot results helped refine the indicator framework, measurement methodology, and data collection process, while also confirming the feasibility of rolling out the PCGI on a national scale.

With this approach, the PCGI is expected to serve as a “policy reflection mirror,” enabling each locality to clearly identify its strengths and weaknesses in governance and cooperative support. At the same time, it is intended to create strong reform incentives, similar to how the Provincial Competitiveness Index (PCI) has driven improvements in the business investment climate.

The PCGI is expected to bring about fundamental changes by enhancing the quality of provincial governance through objective, transparent, and comparable assessments; strengthening the voice of cooperatives in the policy-making process; encouraging healthy competition and the sharing of best practices among provinces and cities; and providing evidence-based data to support decision-making by the Government and the Ministry of Agriculture and Environment.

Khanh Anh