Vietnam’s business environment has seen significant improvements, according to the latest EIU report.
The recent EIU Business Environment Ranking report assessed 82 countries and territories, accounting for over 90% of the global GDP, based on 91 diverse indicators. Vietnam’s business landscape 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, reduction of operational costs for foreign businesses, and significant investments in human capital and infrastructure. Additionally, Vietnam has benefited 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.
The report forecasts that Vietnam will surpass regional peers like Indonesia and Thailand in the next five years due to its engagement in multiple FTAs, low labor costs, and vast market opportunities.
However, Vietnam still faces challenges, including complex administrative procedures and the burden of red tape. Additionally, the country is among the most vulnerable to climate change, with its long coastline and low-lying population centers. These factors heighten the risks associated with extreme heat events and disruptive storms.
