[governance-vn] Vietnam moves up six spots in world business ranking
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Mon Oct 20 23:39:51 EST 2008
Updated, 10/20/2008, 16:30 GMT
Vietnam moves up six spots in world business ranking
Vietnam moves up six spots to 65th 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 fulfilling its WTO commitment to liberalise trade.
It writes, in 2009-2010, Vietnam will improve the operating environment 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 from 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.
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