Vietnam’s global competitiveness wanes

Vietnam has dropped five positions to 75th out of 133 countries in the latest Global Competitiveness Index rankings compiled by the Switzerland-based World Economic Forum.

The Global Competitiveness Report 2009-2010, released Tuesday, said for Vietnam, “the considerable worsening of its macroeconomic situation” had weighed heavily on its economy and competitiveness.

The report said last year’s widening trade deficit, overheated economy and a global rise in commodity prices that caused inflation to shoot up to 23 percent had triggered a crisis of confidence, big swings in interest rates and a sharp fall in the dong.

“It is crucial for monetary authorities and the government to bring inflation back under control and restore macroeconomic stability so that Vietnam can reap the benefits of the efforts and successes achieved in other areas,” the report said.

According to the index, the three biggest hurdles for doing business in Vietnam are a lack of infrastructure, difficulty accessing finance and an inadequately educated workforce.

In 2006-2007, Vietnam ranked 64th out of 122 economies. In 2007-2008, the country dropped four places to 68th out of 131 economies and ranked 70th in last year’s report.

This year, Switzerland topped the overall ranking of 133 economies, while the U.S. fell one place to second position. Asia continued to feature prominently with Singapore in third spot and Japan at eighth and Hong Kong, South Korea and Taiwan all in the top 20.

Thuy Hang

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