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World Bank recognizes Vietnam’s economic improvements
World Bank recognizes Vietnam’s economic improvements
4/11/17
Viet Nam has made outstanding progress
in improving the business environment, moving up 14 notches in the World
Bank’s Doing Business 2018 report on October 31. Doing Business 2018, a
World Bank Group flagship publication, presents quantitative indicators on
business regulations and the protection of property rights that can be compared
across 190 economies. With 67.93
points, Viet Nam ranked 68th out of 190 economies globally
to do business, ahead of major economies in the East Asia-Pacific region, such
as Indonesia (72nd) and China (78th), but behind Singapore (2nd), Malaysia
(24th), Thailand( 26th) and Brunei (56th).
Today, an entrepreneur in Vietnam’s
southern economic hub of Ho Chi Minh City spends 22 days registering a new
company, compared to 61 days in 2003. The WB’s report also acknowledged
significant improvements of Vietnam in the areas of getting electricity,
getting credit, paying taxes, trading across borders, and enforcing contracts.
“Vietnam increased the reliability of
power supply by rolling out a Supervisory Control and Data Acquisition
automatic energy management for the monitoring of outages and the restoration
of service,” the report wrote.
By adopting a new civil code that
broadens the scope of assets that can be used as collateral, the country also
strengthened access to credit. Vietnam made paying taxes easier by abolishing
the 12-month mandatory carry forward period for VAT credit and by introducing
and enhancing systems for filing and paying taxes online, the report said.
For getting electricity, Vietnam
increased the reliability of power supply by rolling out a Supervisory Control
and Data Acquisition (SCADA) automatic energy management system for the
monitoring of outages and the restoration of service. The nation was ranked
64th, up 32 places versus last year.
For getting credit, Vietnam stood at
29th among 190 economies for strengthening access to credit by adopting a new
civil code that broadens the scope of assets that can be used as collateral.
Exporting and importing were also made
easier with automated cargo clearance system and extension in the operating
hours of the customs department.
In addition, Vietnam, by adopting a new
code of civil procedure and by introducing a consolidated law on voluntary
mediation, strengthened its regulatory environment and made enforcing contracts
easier, the report said.
Doing Business captures the
effectiveness and quality of business regulations based on 11 indicator sets,
namely starting a business, resolving insolvency, enforcing contracts and
paying taxes, as well as trading across borders, protecting minority investors,
getting credit and registering property, along with getting electricity,
dealing with construction permits and labour market regulation.
The Government of Việt Nam has in
recent years enhanced the efforts to improve the business climate and national
competitiveness as well as a number of policies to support businesses,
including resolutions 19 and 35.
Vietnam’s business environment and
competitiveness have been improved significantly over the past three years
thanks to a range of solutions. Vietnam also claimed the 47th position among
127 economies surveyed in the 2017 global innovative index (GII) report, the
highest ranking to date, up 12 places from last year’s report, according to the
World Intellectual Property Organisation (WIPO). The World Economic
Forum’s Global Competitiveness Report 2017-18 issued in late September ranked
Việt Nam 55th, up five places from last year, acknowledging improvements in
institutions, infrastructure, macro-economic environment, trade and health and
primary education.
Result
of the reforms
Vietnam’s development record over the
past 30 years is remarkable. Economic and political reforms under Đổi Mới,
launched in 1986, have spurred rapid economic growth and development and
transformed Vietnam from one of the world’s poorest nations to a lower
middle-income country.
Vietnam has enjoyed strong economic
growth. Since 1990, Vietnam’s GDP per capita growth has been among the
fastest in the world, averaging 6.4 percent a year in the 2000s. Despite
uncertainties in the global environment, Vietnam’s economy remains resilient.
The country’s medium-term outlook remains favorable, with GDP expanding by 6 percent
in 2016, while the country’s fundamental drivers of growth – resilient domestic
demand and export oriented manufacturing – remain in force.
Growth has been equitable—with a
dramatic reduction in poverty—and social outcomes have improved significantly. In
1993, over half of the population lived on less than $1.90-a-day. Today, the
rate of such extreme poverty has fallen to 3 percent. The proportion of the
population living below the national poverty line (GSO-WB Poverty line) reached
13.5 percent in 2014—down from close to 60 percent in 1993. More than 40
million people escaped poverty over the course of two decades.
Vietnam has made significant advances
in the provision of basic services. The Vietnamese population today is
more educated and healthier than twenty years ago—and these advances are
enjoyed across society. Learning outcomes are high, including in primary
school. Infant and under-five mortality rates have been significantly reduced
in the last twenty years, down to 19 and 24 mortalities per thousand births in
2012, respectively. Stunting also significantly decreased, from 61 percent in
1993 to 23 percent in 2012. Life expectancy at birth is now 76 years, an
improvement from 71 years in 1993.
Access to basic infrastructure has also
improved substantially. Significant progress were charted from 1993 to
2012. For example, at least 99 percent of the population now use electricity as
their main source of lighting compared to 14 percent more than twenty years
ago. More than 67 percent of the rural population now enjoy access to
sanitation facilities, and more than 61 percent have access to clean water,
compared to only 36 percent and 17 percent, respectively, two decades earlier.
The Government of Vietnam continues to
show commitment to reforms. Vietnam’s 2011 – 2020 Socio-Economic
Development Strategy (SEDS) – a 10 year strategy – highlights the need for
structural reforms, environmental sustainability, social equity and emerging
issues of macroeconomic stability. It defines three "breakthrough areas":
(i) promoting skills development, particularly for modern industry and
innovation; (ii) improving market institutions, and (iii) further
infrastructure development. The Socio-Economic Development Plan (SEDP) for
2016-2020, approved in April 2016, acknowledges the slow progress on certain
policy priorities and emphasizes the need to accelerate reforms./.
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All comments [ 7 ]
The World Bank recognized Vietnam’s effort in making export and import activities easier by upgrading the automated cargo clearance system and extending the operating hours of the customs agencies.
The better business environment is the result of the Government’s measures to assist businesses, especially resolutions 19 and 35.
Vietnam has made numerous reforms to facilitate businesses in getting electricity and credit, paying taxes, trading across borders and enforcing contracts in the last 12 months.
Việt Nam’s medium-term economic outlook remains positive, with GDP growth rate projected to accelerate slightly to 6.3 per cent in 2017
The country’s inflationary pressures will remain moderate, reflecting stable core inflation and the tapering of administrative price hikes. The current account is expected to remain in surplus, albeit at a lower level as stronger import growth resumes.
Vietnam’s business environment and competitiveness have been improved significantly over the past three years thanks to a range of solutions.
Hope for a bright future for Vietnam, these developments will promote social welfares and citizen's rights.
Your comments