Friday, October 24, 2008

Vietnam nudges up a tad to 65th in EIU business ranking

The Economist Intelligence Unit (EIU) reported that Vietnam climbed up six grades in the global business environment ranking from 71 for the period 2009-2010 to the 65th position for the 2009-2013 period. 

Vietnam's business environment has improved after becoming a member of the WTO and the country will gain after implementing WTO commitments on commercial liberalisation. 

In the news "Country Forecast" in October 2008, EIU assessed that between 2009 and 2010, Vietnam will improve business environment for private enterprises and introduce several new laws. By 2011-2013, more state owned enterprises (SOEs) will be equitised. 

According to the news, a law system of Personal Income Tax (PIT) will be modified and enforced from January 2009. By that time, foreigners and locals will pay the same tax level. At present, foreigners have to pay a PIT which is two times higher than the local people. 

Next year, state commercial banks will go in for equitisation and the operations of foreign banks will be limited. 

EIU also forecasted Vietnam's actual GDP growth in 2009 is estimated at 5.3%. However, foreign investors will keep faith in Vietnam's business prospects because of the low labour cost and improved infrastructure. 

As reported, the committed FDI during the first nine months of 2008 reached US$57 billion.