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Global competitiveness ranking: Vietnam jumps 10 places

Global competitiveness ranking: Vietnam jumps 10 places

Thursday 05, 12 2019
It is still possible for the country to jump more places, however, if the economy is reformed slowly, many other countries will surpass and Vietnam will find it hard to keep its current position.

In the Global Competitiveness Report just released by the World Economic Forum (WEF), in 2019 Vietnam ranked 67th out of 141 economies, with 61.5 points on the 100 scale, up 10 places compared to 2018 when Vietnam ranked 77/140 with 58.1 / 100 points.

Among the 12 indicators, Vietnam’s highest ranking was market size which was ranked 26 with 72 points. Compared to 2018, scores of nearly all 12 categories of Vietnam increased and WEF also assessed that Vietnam's economy has the best improvement in scores and rankings globally.

The competitiveness index of each country depends on many different factors, and the annual ranking is conducted through the monitoring of international agencies and organizations. All indicators assessing an economy will be averaged to rank national competitiveness.Assessment score of 12 indicators of Vietnam by WEF.

Global competitiveness ranking: Vietnam jumps 10 places

Many experts believe that the significant increase in Vietnam's competitiveness in 2019 is partly because Vietnam has been innovating in economic activities in general, especially improving the investment and business environment as well as the dynamism of businesses within the economy. In fact, most of the indicators have been significantly improved. In particular, the indicators of macroeconomic stability and reform, inflation index, business investment environment, tax policies ... have contributed to the high competitiveness ranking of Vietnam in list.
Assoc.Prof.Dr. Dinh Trong Thinh (Finance Academy) commented that some of Vietnam's indicators are highly appreciated by international experts such as the desire for investment as well as the improvement of the investment environment, reflected in the positive changes in tax policy, information enhancement, and electronic transactions.
Political and economic stability has been more clearly seen, especially in the context of the world experiencing great changes, even crisis. “The economic growth index as well as the stability of the Vietnamese dong are reassuring investors. Credit growth in the past 9 months was only 8.6% - 9%, but Vietnam's GDP growth was high, at about 7%. While in previous years, with 1% of GDP growth, it often took a growth of 3% - 4% of credit. The stock market as well as the capitalization rate in 2019 also saw a growth of about 17% compared to 2018. Especially, the growth of corporate and government bonds in 2019 showed a change in the way the economy mobilizes and uses capital, helping businesses depend on credit for growth no more.”, Assoc.Prof.Dr. Dinh Trong Thinh pointed out.

The reform process cannot be postponed

It can be seen that the change of Vietnam's economic institutions is a substantial change from the restructuring as well as the intrinsic value of the economy. Therefore, the recorded economic achievements that make the excess of the national competitive rank are believed to have a long-term impact.
However, it must also be frankly recognized that while Vietnam reforms and renews its economy and management mechanism, many countries around the world have also drastically changed their policies. Therefore, if Vietnam delayed the process of economic subjective and remained subjective, many other countries will rise up and it will be difficult for Vietnam to maintain its current ranking.
To sustainably maintain Vietnam's competitive position, according to Assoc.Prof.Dr Dinh Trong Thinh, there are still a number of issues that need to be addressed, including labor productivity which has been improved but the growth rate has not been fully developed as well as meeting expectations. Therefore, in the coming time, if labor productivity does not improve more quickly, the competitive rank of Vietnam will "fall" to a low level.

In addition, the completion of laws and management mechanisms in some areas of the economy has not yet come into effect. Some markets in Vietnam have not been really and properly developed, so it is difficult to meet the needs of faster and higher development of the economy.
Therefore, the full development of domestic market from the labor market, the raw material - fuel market and other factors is one of the very urgent requirements. At present, professional organizations and industry associations have not really brought into full play their capacity and role in linking, helping businesses to approach and respond to policies, thereby improving their ability to form a unified bloc, so there are still many difficulties in the operation of the economy.
 “If organizations and industry associations continue to operate as they do at present, making the link between businesses fragmented, lacking of attractiveness and not becoming a motivation and demand of enterprises, it is really difficult to improve the Vietnam’s competitiveness as well as increase productivity and attract investment.

Global competitiveness ranking: Vietnam jumps 10 places

Some state management agencies not acting quickly and fulfilling their responsibilities are not able to meet the requirements of the economy and the business community, which makes the transformation of the whole economy not really synchronized. Therefore, it is difficult to create a better competitive environment as well as improve the competitiveness index of Vietnam's economy in the coming time.”, Assoc.Prof.Dr Dinh Trong Thinh noted.

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