November 8, 2014
– Despite much reform effort, Vietnam has seen its business environment ranking slip several notches this year.
In the Doing Business 2015 report, the World Bank Group ranks Vietnam’s ease of doing business at 78 among 189 economies worldwide, compared to 72 in the 2014 report. According to the 2015 report, Vietnam has made some improvements in the business environment, such as improving the national credit information by establishing a new credit bureau and helping companies pay lower corporate income tax.
However, in many areas, Vietnam’s business environment is not favorable enough for companies to operate.
Vietnam is ranked 125th in starting up a business, as a business startup requires 10 procedures, takes 34 days and costs 5.3% of income per capita. The ranking in tax payment is particularly low, at 173, when companies have to complete 32 tax payments per year with 872 hours of preparing, filing and paying taxes.
Other rankings of Vietnam in the Doing Business 2015 report are ease of getting electricity 135, registering property 33, trading across borders 75, dealing with construction permits 22, accessing credit 36, enforcing contracts 47, protecting minority investors 117 and resolving insolvency 104.
Singapore remains the most business-friendly environment in the Doing Business ranking.
(The Saigon Times)