Vietnam produced the fastest growth by gaining 3.5 scores and 10 places in the Global Competitiveness Report 2019 by the World Economic Forum (WEF).
Vietnam was placed 67th out of the 141 countries in the Global Competitiveness Report 2019, up 10 places compared to its 2018 ranking. This is the first time Vietnam has made it into the first half of the list.
According to Vu Tien Loc, chairman of the Vietnam Chamber of Commerce and Industry (VCCI), this result comes from the efforts of the government reforms of the policy and legal system.
“The institutional reforms are the most important. They are apparent in the signing of new free trade agreements, as well as the removal and simplification of 50 per cent of business conditions and administrative procedures. Besides, the government tried to implement the electronic government and digital economy, while simultaneously supporting the startup ecosystem and helping cities and provinces increase their respective competitiveness indices,” Loc said.
The Global Competitiveness Index (GCI) is based on 12 pillars: institutions, infrastructure, information and communication technology adoption, macroeconomic stability, health, skills, product market, labour market, financial system, market size, business dynamism, and innovation capacity.
Saadia Zahidi, head of Centre for the New Economy and Society of WEF, told Time Magazinethat the soar in Vietnam’s Global Competitiveness Index is the result of taking advantage of the US-China trade war to lure in a large volumes of foreign investment capital and then become one of the largest trading centres in the region.