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 attractiveness to investors, accounting for over 90% of the global GDP. 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 significant benefits from the “China plus one” policy, aimed at diversifying global supply chains. The country’s strengthened international relations have also played a pivotal role in fostering robust economic ties with major export markets, including the US and the EU.
Vietnam is projected to surpass regional peers in the next five years.
Looking ahead, the report forecasts that Vietnam’s business environment will surpass regional peers such as Indonesia and Thailand within the next five years. This promising outlook is underpinned by Vietnam’s active participation in multiple free trade agreements (FTAs), coupled with its competitive advantages, including low labor costs and vast market opportunities.
However, the report also cautions that Vietnam continues to face certain challenges, 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 populated low-lying areas render the country vulnerable to the heightened risks of extreme heat events and disruptive storms.
