The EU-Vietnam Free Trade Agreement (EVFTA) is expected to put pressure on Vietnamese enterprises to increase their competitiveness in order to make inroads into the European market.

Vietnam’s fall in World Economic Forum and World Bank rankings of competitiveness and business environment is not surprising, say economists.

 VietNamNet Bridge – Booking a car to travel from Hanoi to another province has never been easier.

European firms remain optimistic about the business environment in Vietnam, according to EuroCham’s latest Business Climate Index (BCI).

VietNamNet Bridge - As many as 3,000 Vietnamese logistics firms have to compete fiercely with 29 multinational companies to have the right to carry Vietnamese exports to the world market.

Pressure from fierce competition will increase in the local retail market this year after the ASEAN Economic Community (AEC) was established and as the Trans-Pacific Partnership (TPP) deal will come into effect in the next couple of years.

 VietNamNet Bridge – Several domestic garment and textile companies would face more challenges from large rivals following integration, said Tran Quang Nghi, chairman of the National Garment and Textile Group (Vinatex).

The State Bank of Vietnam (SBV) has made a reasonable decision not to devalue the dong further as the continued devaluation will only benefit China, according to Dr. Bui Trinh and Dr. To Trung Thanh, experts on the Chinese economy.

VietNamNet Bridge - Businesses and analysts all believe that the State Bank (SBV) will not devalue the dong again this year because there will be less pressure on the exchange rate.

Vietnam ranked 75th out of 93 economies in the Global Talent Competitiveness Index (GTCI) in 2014, a minor change compared to the 82nd position out of 103 countries in the previous year,

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The Richest has put Vietnam into the list of the five markets with the cheapest labor cost in the world with $0.39 per hour. However, the actual labor cost could be higher.

The Mekong Delta province of Dong Thap ranks first in the Provincial Competitiveness Index (PCI) 2012 while Hanoi losses 15 grades, falling to its lowest position since the index was published.

VietNamNet Bridge – The stabilizing of the dong/dollar exchange rate over the last two years has made the local currency depreciate by 20 percent, which has hindered exports.

VietNamNet Bridge – Vietnam, which expects the export turnover increase by three folds by 2020, is now calling for investments in the logistics industry in order to improve its competitiveness.