How business environment and competitiveness have improved

The Government issued four resolutions between 2014 and 2017 (with the same number-19), which figured out measures to improve the country’s business environment and national competiveness.

Though improvements have been made, the outcomes vary from ministries to ministries and some sub-indices even stand below the Government's goals.

Specifically, in 2017 , Viet Nam’s competitive index jumped five places to 55th out of 137 economies compared 60th out of 138 economies in 2016 while the business environment ranked 68th out of 190 economies, up 14 notches.

Viet Nam ranked 47th out of 127 economies in the Global Innovative Index, the unprecedented highest performance. 

In addition, in 2013, three independent credit-ratings organizations namely Moondy’s, Standards, Poor’s and Fitch rated Viet Nam in which two out of three (including (Moondy’s and Fitch) decided to change the outlook on Viet Nam’s credit rating from stable to positive. 

However, the above improvements are yet sustainable and many sub-indices even remain far lower than those of other countries in the regions, including starting a business (123^rd), resolving insolvency (129th), registering property (69^th), and enforcing contracts(66^th), according to the World Bank’s Doing Business.

The Government expected to cut business conditions by half last year but only five ministries (ministries of industry and trade, agriculture and rural development, construction, information and communications and the State Bank of Viet Nam) have reviewed and adopted cutting plans, said Dr. Nguyen Dinh Dung, President of the Central Institute for Economic Management.

Drastic involvement of ministers is decisive factor in administrative reform, said Cung, adding that business community also needs to take active role in supervision this process.

Speaking at a meeting of the National Council for Sustainable Development and Competitiveness Improvement to discuss on contents of the draft Resolution 19 for 2018 on Thursday, Deputy PM Vu Duc Dam urged each of the relevant ministries and agencies to envisage their specific tasks and the implementation process must be monitored.

He also asked for improvements in all ministries and agencies and publication of outcomes.

Under the draft resolution, Government expects to pull the rate of specialized inspection down to 15% from the current 30-35% and abolish at least one third to half of the existing business conditions.

The Government also sets the goals to improve the competitiveness of the tourism sector by around 10 places and lower logistics costs to around 18% GDP from the current 20%./.

By Kim Loan