From
WIRE REPORTS
Viet
Nam is now trailing behind most of its neighbors in Southeast Asia in terms of
competitiveness as the country’s macroeconomic environment has worsened, the
World Economic Forum says in a new report.
The
country has dropped 10 places to 75th in this year edition of the WEF’s Global
Competitiveness Report.
Over
the past two years, it has lost 16 places and is now the second-lowest ranked
among eight members of the regional bloc ASEAN covered by the annual report,
ahead only of Cambodia.
“As
a sign of its fragility and extreme volatility, Viet Nam plunges 41 places in
the macroeconomic environment pillar to 106th after it had recorded a 20-place
gain in the previous edition,” according to the report, which graded 144
economies around the world based on 12 categories, including tax burdens,
transparency of both the government and the financial sector, inflation
conditions, and research and development.
This
year, Viet Nam ranks below 50th in all of the 12 pillars, and is “dangerously
close to the 100th position on a majority of them,” the report said.
It
pointed out that access to credit has been made more difficult while
infrastructure, strained by rapid economic growth, remains a major challenge
for the country.
“Among
Viet Nam’s few competitive strengths are its fairly efficient labor market
(51st), its large market size (32nd), and a satisfactory performance in the
public health and basic education pillar (64th),” according to the report. “The
challenges going forward are therefore numerous and significant and will
require decisive policy action in order to put the country’s growth performance
on a more stable footing.”
Switzerland,
for the fourth consecutive year, remains the most competitive economy in the
world, followed by Singapore and Finland.
The
WEF said looking forward, productivity improvements and private sector
investment will be key to improving global economies.
