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Vietnam is backsliding, now among least competitive economies in Asia Pacific

By Ha Thu September 29, 2016 | 08:35 pm PT

A lack of innovation pulls the country down in the Global Competitiveness Index rankings.

After an impressive leap last year, Vietnam has lost its momentum and dropped to number 60 in the important Global Competitiveness Index, behind most regional economies.

According to a new report released by the World Economic Forum, Vietnam is now ranked behind Singapore (2), Malaysia (25), Thailand (34), Indonesia (41) and the Philippines (57).

Last year, the country advanced 12 places to 56th among 138 economies, creating a lot of optimism for its transition into an efficiency-driven economy.

But in this year's rankings, Vietnam fares poorly in terms of innovation, technological readiness and business sophistication.

The new report has also named the most problematic factors for doing business in Vietnam. At the top are inadequacy educated workforce, policy instability and tax regulations.

According to the World Economic Forum, the new competitiveness report comes out in the context of persistent slow growth and uncertainty, fueled by continued geopolitical turmoil, financial market fragility and sustained high debt levels in emerging markets.After one year, there is no change in the top three positions, which continue to be held by Switzerland, Singapore and the U.S.

> World Economic Forum director: Vietnam should try to merge classic industry with digital

> ADB lowers Vietnam's growth forecast to 6 percent