[governance-vn] Vietnam moves up six spots in world business ranking

[Vern Weitzel]

http://www.vovnews.com.vn/?page=126&nid=77591

  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.
VOVNews/VN