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Vietnam up six spots in world business ranking

(VNA) - Vietnam moves up six spots to the 65th place out of 82 countries in the global ranking of business environment for the 2009-2013 period, according to a US-based company.

The Economist Intelligence Unit, with a US-based branch serving companies establishing and managing operations across national borders, attributed its ranking to Vietnam 's membership of the World Trade Organisation (WTO).

The country ranks 71st for the 2004-08 period in the firm’s previous report.

The firm, in its “Country Forecast October 2008” newsletter, says Vietnam 's membership of the WTO will help to improve the business environment and Vietnam will make progress in fulfiling its WTO commitment to liberalise trade.

It writes, in 2009-2010, Vietnam will improve operating enviroment for private enterprises in line with the implementation of new legislation, and in 2011-2013, more State-owned enterprises will undertake reforms and be equitised.

The Economist Intelligence Unit assures world-wide companies that a reformed personal income tax system will come into effect in January 2009, by then foreign workers will be taxed the same rates as applied to Vietnamese workers.

The tax threshold for foreign staff is currently twice as high as that for local employees. Moreover, in the period from 2009-2010, State-owned commercial banks will undertake some reforms and in the 2011-13, limits on the activities of foreign banks will be eased further.

The firm forecast that real GDP growth in Vietnam will drop to 5.3 percent in 2009, however, it said, foreign investors are still confident about Vietnam 's long term prospects built up by low cost labour and improved infrastructure in the 2011-2013 period and soaring foreign direct investment in 2008.

Copyright by VietNam Ministry of Foreign Affairs