VietNamNet Bridge -- Easier business start-up procedures, construction permitting and credit information sharing gained Vietnam a sharply higher ranking among national economies in the ease of doing business for local firms in 2009/2010, according to Doing Business, an annual assessment by the World Bank and its International Finance Corporation (IFC) arm.

Vietnam’s ten place gain in the global rankings was matched only by Chile, the Czech Republic, Kazakhstan, Rwanda, Ghana, the Maldives and the Marshall Islands.  Now rated 78th among 183 market economies, Vietnam has passed China (79) and Italy (80). 

Singapore, Hong Kong and New Zealand lead the world in the ease of doing business for local firms.
“The Vietnamese government’s efforts on regulatory and public administrative reforms are reflected in Doing Business 2011 and in the improvement of Vietnam’s overall ranking,” said Simon Andrews, IFC Regional Manager for Vietnam, Cambodia, Laos and Thailand, in a World Bank press release.

The assessment analyzes regulations that apply to an economy’s businesses during their life cycle, including start-up and operations, trading across borders, paying taxes, and closing a business.

According to the World Bank and IFC, Vietnam eased company start-up by creating a one-stop shop that combines the processes for obtaining a business license and a tax license and by eliminating the need for a seal for company licensing. It also halved the cost of registering newly completed buildings. This and the transfer of the authority to register buildings from local authorities to the Department of National Resources and Environment made dealing with construction permits easier. In addition, the credit information system has been improved, allowing borrowers to examine their own credit report and correct errors.

In its detailed assessment, the World Bank/IFC gave Vietnam its best grades in ease of getting credit (15/178), enforcing contracts (31), registering property (43), dealing with construction permits (62) and trading across borders (63).  Lower ratings in ease of starting a business (100), paying taxes (124), closing a business (also 124) and protecting investors (173) pulled down the nation’s overall score.

Data for all 178 economies is posted at www.doingbusiness.org.

In the region:

                                2011       2010

Singapore                1              1

Hong Kong               2             2

South Korea           16             15

Japan                    18             19

Thailand                 19            16

Malaysia                 21           23

Taiwan                    33           34

Vietnam                 78            88

China                     79           78

Brunei                  112           117

Indonesia              121          115

Cambodia             147          145

Philippines            148          146

Laos                     171          169

David Brown