Vietnam drops one place in ease of doing business ranking

By Dat Nguyen   November 1, 2018 | 04:03 pm GMT+7
Vietnam drops one place in ease of doing business ranking
Employees work at an office in Vietnam. Photo by Shutterstock/Jimmy Tran

Vietnam’s ease of doing business ranking fell one place to 69th among 190 economies, according to a World Bank report released Wednesday.

Among ASEAN countries, it was ranked higher than Indonesia (73), India (77), Laos (154) and Myanmar (171), according to a World Bank report titled "Doing Business 2019: Training for Reform."

Even though Vietnam has been striving to improve its business environment in recent years, its ranking fell in some key areas.

The steepest decline was in paying taxes, which fell 45 places from last year. Protecting minority investors dropped 8 places, trading across borders, 6, resolving insolvency 4 and accessing credit, 3.

Vietnam was ranked 21st for getting construction permits and 27th in getting electricity connections. It had low rankings in paying taxes and resolving insolvency, at 131 and 133 respectively.

To start a business in Ho Chi Minh City, an individual would have to go through 8 procedures over 17 days and pay 5.9 percent of his/her annual per capita income. Corresponding figures for Thailand’s Bangkok were five procedures, 4.5 days and 3.1 percent; and in Singapore, just two procedures, 1.5 days and 0.4 percent.

However, the World Bank report noted that in the last decade, Vietnam has made starting a business easier by publishing the notice of incorporation online and reducing the cost of business registration.

Dau Anh Tuan, head of the Legal Department under the Vietnam Chamber of Commerce and Industry (VCCI), said that although the World Bank has noted Vietnam’s reforms in three areas: starting a business, paying taxes and enforcing contracts; this was lower than last year’s five areas. 

Tuan told local media that authorities should “make stronger and more practical changes” in the business environment.

New Zealand was the easiest country to do a business this year, followed by Singapore, Denmark, Hong Kong (China) and South Korea.

The report ranks an economy based on 10 topics: 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.


 
 
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