Vietnam moves up 12 places in EIU’s business environment ranking

Vietnam has emerged as the world's most dynamic country, jumping 12 places in the Economist Intelligence Unit's (EIU) business environment ranking of 82 countries.

Production of household appliances at Hanoi Plastic Company. Photo: The Hanoi Times

The report highlights that Vietnam, along with Thailand and India, is considered the Asian country that is making the most progress in terms of business development.

The EIU report evaluates the business environment using a standardized analytical framework of 91 indicators.

Singapore retained its top position in the latest ranking, while Vietnam showed the most notable improvement. Conversely, China's score dropped significantly due to regulatory changes and escalating costs.

Over the past year, Vietnam, Thailand, Belgium, Sweden, India, and Costa Rica have made notable progress, the EIU said.

"The global business environment rankings may continue to face headwinds from the war in Ukraine, the ensuing spike in inflation and cost of living crisis, and the current combination of fiscal loosening and monetary tightening amid an economic slowdown," said Prianthi Roy, EIU Country Forecast Manager, and Europe Analyst.

Vietnam's rise of 12 places positions it as the world's most dynamic country, followed by Thailand's rise of 10 places and India's rise of 6 places. The report also shows that Vietnam and Thailand have implemented favorable policies to attract foreign investors.

Based on data from the Foreign Investment Agency of the Ministry of Planning and Investment, the total committed foreign direct investment (FDI) in Vietnam stood at US$8.88 billion as of April 2023. This figure represents a growth of 82.1% over the same period last year. The realized capital from foreign investment projects is estimated at around US$5.85 billion, a slight decrease of 1.2% compared to the same period in 2022.