Vietnam’s business environment has seen significant improvements, according to the latest EIU report.
The recent EIU Business Environment Rankings report, which assesses 82 countries and territories across 91 diverse indicators, provides a comprehensive overview of their investment appeal. Vietnam’s business landscape has witnessed the most substantial enhancement between 2003 and 2023, earning a remarkable 1.3 points, the highest among all evaluated economies.
This impressive progress is attributed to Vietnam’s embrace of free trade policies, coupled with reduced operating costs for foreign businesses, and substantial investments in human capital and infrastructure. Additionally, Vietnam has reaped benefits from the “China plus one” policy, aimed at diversifying global supply chains, and its enhanced international relations have strengthened economic ties with major export markets like the US and the EU.
Vietnam’s future business prospects look promising.
Looking ahead, Vietnam is projected to surpass regional peers such as Indonesia and Thailand in the next five years. This optimistic forecast is underpinned by Vietnam’s active participation in multiple free trade agreements (FTAs), its competitive advantage of low labor costs, and the vast market opportunities it presents.
However, the report also highlights challenges that Vietnam needs to address, including complex administrative processes and the burden of red tape. Additionally, Vietnam is identified as one of the regions that will be significantly impacted by climate change. Its lengthy coastline and low-lying population centers make it vulnerable to the increasing risks of extreme heat events and disruptive storms.
