Small investors finding life easier in Vietnam: World Bank

By VnExpress   October 26, 2016 | 11:33 am GMT+7
Small investors finding life easier in Vietnam: World Bank
Workers assemble shoes in Vietnam in 2005. Photo by AFP

The country ranked 82 out of 190 economies in the latest Doing Business Report.

Vietnam has climbed eight spots on the latest Doing Business Report compiled by the World Bank.

This year, Vietnam ranked 82 out of 190 economies, showing that the country has strengthened its protection of small investors, the report showed.

The Southeast Asian country improved in three of the 10 indicators the World Bank uses to measure regulations affecting the life cycle of a business.

There has been significant progress in the areas of Protecting Minority Investors, Paying Taxes and Trading Across Borders.

“Vietnam made paying taxes easier and less costly by streamlining the administrative process of complying with tax obligations and abolishing environmental protection fees,” said the report.

It added that Vietnam has made trading across borders easier by implementing an electronic customs clearance system. For instance, in 2012, it took a business on average 872 hours per year to meet its tax obligations. This year, the time required to comply with tax payments has almost halved to 540 hours.

However, the country recorded a decline in Starting a Business despite efforts to cut many excessive business licensing regulations.

Vietnam has gradually improved by 17 spots in the Doing Business report since 2012 when the country was ranked 99 out of 183 economies.

In ASEAN, Malaysia ranked 23rd, Thailand 46th, Brunei 72nd, Indonesia 91st and the Philippines 99th, and have also shown improvements in the World Bank’s flagship report.

The World Bank collected data for the report between February and May this year.

“New reforms tackling multiple barriers to business in the East Asia and Pacific region are the stepping stones to enhance business activity. Despite marked improvements, economies in the region still have improvements to make in order to ease the business climate for local entrepreneurs,” said Rita Ramalho, manager of the Doing Business Report.

This year, for the first time, the report includes a gender dimension in three of the 10 topics covered: Starting a Business, Registering Property and Enforcing Contracts. The report finds that, in those areas, few East Asia and Pacific economies have gender barriers.

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