Vietnam’s business environment has seen significant improvements, according to the latest EIU report.
The recently released EIU Business Environment Ranking assesses 82 countries and territories, accounting for over 90% of the global GDP, based on 91 diverse indicators. Vietnam’s business landscape has witnessed the most substantial enhancement in the 2003-2023 period, 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 operational costs for foreign enterprises, 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, and its enhanced international relations have strengthened economic ties with major export markets like the US and the EU.
According to the report, Vietnam is set to surpass regional peers such as Indonesia and Thailand in the next five years.
The report forecasts that Vietnam’s business environment will outpace that of its regional counterparts, such as Indonesia and Thailand, within the next five years. This promising outlook is attributed to 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 cautions that Vietnam still faces 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 low-lying population centers make it vulnerable to the increasing risks of extreme heat events and disruptive storms.
