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Country Snapshot - Vietnam  

HighlightsRankingsQuantitative DataLegislationAnalytical WorkProject Portfolio
  • East Asia & Pacific
  • Low income
  • 88,361,983 (2011)
  • 1,100
Vietnam Flag
Below are select highlights for the data included in the profile.

  1. Vietnam’s Doing Business 2011 overall ranking has increased by 10 points this year, reflecting higher scores for five indicator. The most significant improvement occurred in the Paying Taxes Indicator, where the country jumped 22 spots. The country is among the top ten reformers in 2011. Vietnam eased company start-up by creating a one-stop shop that combines the processes for obtaining a business license and tax license and by eliminating the need for a seal for company licensing. The country also made dealing with construction permits easier by reducing the cost to register newly completed buildings by 50% and transferring the authority to register buildings from local authorities to the Department of National Resources and Environment. Finally, Vietnam improved its credit information system by allowing borrowers to examine their own credit report and correct errors.
  2. According to the latest Enterprise Surveys (2009), the top constraints to investment in Vietnam include Access to Finance and the Practices of the Informal Sector. Among the firms surveyed, 87.46% of them reported competing with unregistered or informal firms, compared to 83.87% regionally. Only 49.93% of firms have a line of credit or loans from financial institutions, though that figure is higher than the regional average of 40.40%.
  3. Of the 33 sectors covered by the Investing Across Sectors indicators, 18 are fully open to foreign equity ownership in Vietnam, including manufacturing industries. Overt statutory ownership restrictions exist primarily in strategic services sectors, such as telecommunications (fixed-line and wireless/mobile), electricity transmission and distribution, and select transportation sectors.
  4. According to the Economist Intelligence Unit, the Vietnamese economy will record relatively slow growth this year, constrained by sharp interest-rate increases and rising inflation, which will hit private consumption and investment growth. For the whole of 2011, the Economist Intelligence Unit expects growth to average 6.3%, following 6.8% growth in 2010. Downside risks to our forecast exist, particularly if the government fails to implement clear monetary and fiscal measures to combat inflation and prioritize economic stabilization.
  5. Vietnam’s economic freedom score is 51.6, making its economy the 139th freest in the 2011 Index. Its score is 1.8 points better than last year, mainly reflecting higher scores in monetary freedom and business freedom. Vietnam is ranked 30th out of 41 countries in the Asia-Pacific region, and its overall score is lower than the world and regional averages. Capitalizing on its gradual integration into the global trade and investment system, Vietnam has been transforming itself into a more market-oriented economy. Reforms have included partial privatization of state-owned enterprises, liberalization of the trade regime, and increasing recognition of private property rights. Despite the challenging global economic environment, the economy has registered annual growth rates averaging about 7 percent over the past five years. The judiciary remains weak and vulnerable to political influence, and corruption is widespread.