REPOSITIONING THE PROVINCIAL COMPETITIVENESS INDEX (PCI) AND THE PROVINCIAL GOVERNANCE AND PUBLIC ADMINISTRATION PERFORMANCE INDEX (PAPI) TO ENHANCE POLICY IMPLEMENTATION CAPACITY IN VIETNAM’S TWO-TIER LOCAL GOVERNMENT MODEL

Abstract

This paper analyzes the role of the PCI and PAPI indices in the context of Vietnam's transition to a two-tier local government model. Based on PCI and PAPI data from the 2019–2024 period, the study identifies a gap between local governance measurement systems and policy implementation capacity, stemming from institutional, organizational, and analytical capacity barriers. Accordingly, the paper proposes a framework for transforming indicators into implementation capacity to integrate PCI and PAPI data into the decision-making cycle. The findings affirm that repositioning PCI and PAPI represents a crucial institutional shift to promote data-driven governance and enhance the policy implementation capacity of local governments in the two-tier model.