Vietnam’s score increased to 69.8 points from 68.36 points from last year but the country moved down one place from the 69th to 70th out of 190 economies in the World Bank (WB) 2020 Ease of Doing Business Ranking.
In this year’ ranking, WB values economies based on 10 criteria including Starting a business, Dealing with construction permits, Getting electricity, Registering property, Getting credit, Protecting minority investors, Paying taxes, Trading across borders, Enforcing contracts, and Resolving insolvency.
According to WB, Vietnam has made improvements in Getting credit and Paying taxes, helping to facilitate business activities. Almost all sectors have seen improvements compared to the previous year. The highest ranking is Dealing with construction permits (ranked 25th) and the lowest ranking is Resolving insolvency(ranked 122nd).
In the Southeast Asia region, Vietnam’s ranking is lower than Singapore (2nd), Malaysia (12th), Thailand (21st) and Brunei (66th).
New Zealand continues to hold first place this year, followed by Singapore, Hong Kong (China), Denmark and the Republic of Korea.
According to WB, 190 surveyed countries have carried out a record 294 reforms between May 2018 and May 2019. China and India are among top 10 countries implementing the highest number of reforms to improve business environment.
However, WB said that the East Asia – Pacific region still reveal many weaknesses in some areas such as Trading across borders, Enforcing contracts, and Resolving insolvency, showing the large gap between economies in the region.
With Vietnam’s economy expanding at an impressive rate, navigating its unique business culture is vital for potential investors hoping to enter this burgeoning market. The Vietnamese are incredibly open and optimistic about foreign investment and the opportunities brought by increasing integration in international markets. They are also usually very keen to share their proud culture, tradition and history with foreigners in order to protect their local customs and heritage in a rapidly developing and outward-looking society.