The World Bank says in a recent report that Vietnam’s business environment is positive but digitalization and the streamlining of the administrative system are needed for the economy to continue its growth.
The World Bank’s Doing Business 2020 Report, says that Vietnam has slipped one place to 70th in this year’s report compared to 69th place in 2019. Vietnam scored 69.8, a higher than 2019’s score of 68.8 or 2018’s score of 66.77 but despite the higher score, the country’s overall rank declined for the second year in a row.
The World Bank’s new report ranks 190 economies by 10 criteria on starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minor investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency.
World Bank ranks for countries in the ASEAN region (out of 190 countries):
Jacques Morisset, Program Leader for Vietnam for the World Bank’ told local media that Vietnam’s economy “is much better than others with the same per-capita income.” He commented on Vietnam’s decline in its rank and said that the lower ranking “doesn’t mean that Vietnam has not approved or implemented reforms. It means Vietnam has made progress but not as fast as other countries.”
Morisset also noted that the World Bank recommends that the Vietnamese Government focus on improving criteria on trading and tax paying since these are the two areas where the country is performing the worst and that a streamlined administrative system is required to boost the economy’s business environment.
Discussing administrative reform, the World Bank notes that: “Vietnam has many regulations and a lack of co-ordination across ministries. Companies often do not know where to go.”
Vietnam also has a lot of duplication – the same document and information is often needed multiple times. Digitalization will facilitate a faster-growing economy, as the authorities will have less paper to work on and simplify their workflow.”
The World Bank says in its report that the East Asia-Pacific economies had improved 33 criteria for small and medium-sized enterprises (SMEs), however, the region’s overall reforms were slowing down. Progress was also seen among East Asia-Pacific economies in helping businesses get better access to credit, power supply and construction permits. However, limits remained in enforcing contracts, which requires international practices and arbitrators to resolve.
To read the World Bank’s Doing Business 2020 report.... CLICK HERE !!