“Vietnam’s Impressive Growth Story: Outpacing Southeast Asian Peers”

In a recent publication by EIU, the Business Environment Rankings report, Vietnam’s business landscape witnessed the most significant improvement between 2003 and 2023. With a score of 1.3, Vietnam topped 82 countries and territories, accounting for over 90% of the global GDP, in terms of the overall investment appeal.

This remarkable progress is attributed to Vietnam’s embrace of free trade policies, reduction of operational costs for foreign businesses, and substantial investments in human capital and infrastructure. Additionally, Vietnam has been a beneficiary of the “China plus one” policy, aimed at diversifying global supply chains, further enhancing its economic prospects.

Looking ahead, Vietnam is projected to surpass regional peers such as Indonesia and Thailand in the business environment over the next five years. This optimistic forecast is underpinned by Vietnam’s active participation in multiple free trade agreements (FTAs), competitive labor costs, and vast market opportunities.

However, challenges remain. Vietnam needs to address complex administrative processes and the burden of red tape. Additionally, the country is among the most vulnerable to climate change, with its lengthy coastline and low-lying population centers. These factors heighten the risks associated with extreme heat events and disruptive storms.