According to the World Bank Group’s annual “Ease of Doing Business’ report released on October 31, Vietnam ranked 68th this year after ranking 82nd in the last report.

The improved ranking confirms that Vietnam’s business environment is viewed more positively by the international community and its ranking surpasses many countries in the region.

Within ASEAN, Vietnam follows Singapore (second in the world), Malaysia (24th), Thailand (26th), and Brunei Darussalam (56th), and is ahead of Indonesia (72nd), the Philippines (113th), Cambodia (135th), Laos (141st), Myanmar (171st), and Timor-Leste (178th).

Vietnam and Indonesia have implemented the most reforms over the past 15 years, with 39 each, followed by China and Brunei Darussalam with 26 each. “Today, an entrepreneur in Ho Chi Minh City spends 22 days and 6.5 per cent of per capita income registering a new company, compared to 61 days and 31.9 per cent in 2003,” the report noted.

Rankings are based on the average of each economy’s distance to frontier scores for the ten topics included in this year’s aggregate ranking. The measure shows how close each economy is to global best practices in business regulation. A higher score indicates a more efficient business environment and stronger legal framework.

The government has implemented a range of policies this year to improve the country’s business environment and has enhanced competitiveness by meeting directly with the private sector. Resolutions No. 19 and No. 35 on improving the business environment, enhancing competitiveness, and supporting small and medium-sized enterprises have been and are being implemented effectively.

The Law on Support for Small- and Medium-sized Enterprises was approved recently and includes policies to reduce the number of business conditions. The government has also decided to establish a board for private economic development research, known as IV Board.

The board is tasked with helping the government reform mechanisms, policies, and administrative procedures relating to the private sector, in keeping with national economic objectives. It will also take the initiative in setting up an assistance system and mobilizing resources to complete its tasks.