Vietnam got 58.8 points this year in the economic freedom index. (Photo heritage.org)Hanoi (VNS/VNA) - Vietnam jumped 23 places from last year to reach58.8 points, ranking 105th place in the economic freedom index this year.
The HeritageFoundation has released the 2020 Index of Economic Freedom report.
The country’s overall score has increased by 3.5 points due to a dramatic gainin fiscal health.
Vietnam is ranked 21st among 42 countries in the Asia–Pacific region, and itsoverall score is slightly below the regional and world averages.
The Vietnamese economy has gradually been climbing the ranks of the mostlyunfree since 2011.
Strong GDP growth over the past five years has mirrored this improvement,driven by export-focused manufacturing and processing sectors.
Economic freedom will be enhanced in Vietnam if the government can successfullyexpand economic liberalisation by promoting international trade andrestructuring state-owned enterprises, said the report.
“Improvement of the investment climate will be slow without improvements injudicial effectiveness and stronger efforts to fight corruption.”
Although all land is collectively owned and managed by the state, as ofSeptember 2018, the government had issued land-use rights certificates for 96.9percent of land in Vietnam.
The top personal income tax rate is 35 percent, and the top corporate tax rateis 22 percent. Other taxes include value-added and property taxes. The overalltax burden equals 18.6 percent of total domestic income.
Government spending has amounted to 28.3 percent of the country’s output (GDP)over the past three years, and budget deficits have averaged 4.7 percent ofGDP. Public debt is equivalent to 57.5 percent of GDP.
“Starting a business has become easier, and the cost of business registration hasbeen cut. Corporate governance standards and the enforcement of labour laws areweak,” said in the report.
Price stabilisation controls remain in effect for fuel, energy and waterutilities, natural resources, and pharmaceuticals.
The total value of exports and imports of goods and services equals 187.5 percentof GDP.
The average applied tariff rate is 2.7 percent, and 80 non-tariff measures arein force.
The overall investment framework has been modernised and facilitates foreigninvestment, but it lacks efficiency.
The financial sector continues to evolve, and directed lending by state-ownedcommercial banks has been scaled back in recent years./.
The HeritageFoundation has released the 2020 Index of Economic Freedom report.
The country’s overall score has increased by 3.5 points due to a dramatic gainin fiscal health.
Vietnam is ranked 21st among 42 countries in the Asia–Pacific region, and itsoverall score is slightly below the regional and world averages.
The Vietnamese economy has gradually been climbing the ranks of the mostlyunfree since 2011.
Strong GDP growth over the past five years has mirrored this improvement,driven by export-focused manufacturing and processing sectors.
Economic freedom will be enhanced in Vietnam if the government can successfullyexpand economic liberalisation by promoting international trade andrestructuring state-owned enterprises, said the report.
“Improvement of the investment climate will be slow without improvements injudicial effectiveness and stronger efforts to fight corruption.”
Although all land is collectively owned and managed by the state, as ofSeptember 2018, the government had issued land-use rights certificates for 96.9percent of land in Vietnam.
The top personal income tax rate is 35 percent, and the top corporate tax rateis 22 percent. Other taxes include value-added and property taxes. The overalltax burden equals 18.6 percent of total domestic income.
Government spending has amounted to 28.3 percent of the country’s output (GDP)over the past three years, and budget deficits have averaged 4.7 percent ofGDP. Public debt is equivalent to 57.5 percent of GDP.
“Starting a business has become easier, and the cost of business registration hasbeen cut. Corporate governance standards and the enforcement of labour laws areweak,” said in the report.
Price stabilisation controls remain in effect for fuel, energy and waterutilities, natural resources, and pharmaceuticals.
The total value of exports and imports of goods and services equals 187.5 percentof GDP.
The average applied tariff rate is 2.7 percent, and 80 non-tariff measures arein force.
The overall investment framework has been modernised and facilitates foreigninvestment, but it lacks efficiency.
The financial sector continues to evolve, and directed lending by state-ownedcommercial banks has been scaled back in recent years./.
VNA
