Viet Nam reaps “sweet fruits” of reforms
16:38 | 03/01/2020

VGP – While many economies in Asia and Asia-Pacific reported a decline in competitiveness, Viet Nam jumped ten places to 67th among 141 economies in the 2019 Global Competitiveness Index (GCI) rankings recently issued by the World Economic Forum (WEF).

Viet Nam reaps “sweet fruits” of reforms

Specifically, Viet Nam’s score rose by 3.5, making it the most improved country in 2019 and one of the best performers in Asia-Pacific.

Moreover, it was the first time that Viet Nam had two component indexes with an absolute score of 100, including the most stable inflation and the lowest terrorism incidence.

Among the 12 assessed pillars, Viet Nam saw its score decrease in health only and remain unchanged in macroeconomic stability, while the scores for other pillars improved compared with the previous year.

What made Viet Nam such an impressive performer in the 2019 GCI Report? According to researchers, the first factor was the determination to reform economic institutions, with one of the major contents being the change of mindset in the administrative apparatus, removing all barriers which are hampering the creativity of the people and enterprises.

Every year since 2014, the government has promulgated a resolution on improving the business environment and enhancing national competitiveness, in which it sets specific goals concerning the improvement of Viet Nam’s rating in international rankings and assigns ministries and agencies to implement, inspect and monitor the actual progress.

The Prime Minister has also requested the inclusion of improving the business climate and enhancing national competitiveness as one of the emulation targets among local governments. This has resulted in the social confidence in a facilitative state with concrete efforts, such as eliminating and simplifying business conditions, changing the state management method in specialized inspection activities, stepping up the building of e-government and non-cash payment, reforming inspection of enterprises, and reducing compliance costs for the people and enterprises.

In addition, Viet Nam’s improvement was partly attributed to its ability to take advantage of opportunities from trade war to attract foreign investment and become a more attractive trade centre in the region.

Capitalizing on trade liberalization, and combining external liberalization with domestic reforms through the removal of a wide range of business hurdles and business cost reductions, have helped Viet Nam to turn challenges into opportunities, thus continuing to firmly move forward amid the increasingly uncertain global economic and political context.

Currently, Viet Nam is ranking 6th in ASEAN, and the government will continue its reform program towards the goal of breaking into the top four in the region.

In order to realize such a goal, the government will accelerate the substantial reduction of business conditions, narrow the scope of goods subject to specialized inspections, strongly promote electronic payment and online public services level 4, contributing to reducing costs, enhancing transparency, fighting corruption and fostering enterprise-centric innovations.

By Vien Nhu

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