Vietnam becomes most improved country in global competitiveness league

11-Oct-2019 Intellasia | The Saigon Times | 6:02 AM Print This Post

Vietnam, which has climbed 10 notches to rank 67th out of 141 economies in the latest Global Competitiveness Report, saw the most significant score improvement.

The report, released by the World Economic Forum (WEF) on Tuesday, said that globalisation and the Fourth Industrial Revolution have created new opportunities but also disruption and polarisation within and between economies and societies.

In this context, the WEF introduced last year the new Global Competitiveness Index 4.0, a new economic compass, building on four decades of experience in benchmarking the drivers of long-term competitiveness.

The index maps the competitiveness landscape of 141 economies through 103 indicators organised into 12 themes. Each indicator, using a scale from 0 to 100, shows how close an economy is to the ideal state or “frontier” of competitiveness.

The pillars, which cover broad socioeconomic elements are institutions, infrastructure, information and communication technology adoption, macroeconomic stability, health, skills, product market, labour market, financial system, market size, business dynamism and innovation capability.

With a score of 61.5 (up 3.5 points), Vietnam is the most improved country in 2019 as it moves up 10 places from the 2018 ranking.

Of the 12 pillars, Vietnam’s health dimension was marked the highest at 81 points, ranking 71st out of 141 economies. Its market size was in 26th place with 72 points, while its macroeconomic stability reached 75 points to be in 64th place.

Vietnam was classified as having the lowest risk of terrorism and the most stable inflation rate. The country received the maximum of 100 points in these categories.

WEF founder Klaus Schwab called the index a “compass for thriving in the new economy where innovation is the key factor of competitiveness.”

The report stated that it is too early to fully assess the impact of some of the operative factors in the world economy over the last year, notably rising trade tensions between the United States and China that have led to tariffs on hundreds of billions of dollars worth of goods.

They found signs that the trade tiff has allowed some economies to benefit, as businesses seek alternatives to China.

Saadia Zahidi, head of the WEF’s centre for the New Economy and Society, was quoted by the Associated Press as saying, “That 10-rank increase is in part because the economy has been able to use the current situation of the trade war to attract (foreign) investment and move forward in becoming a regional trading hub.”

She pointed out that there is not enough information available yet to assess the full impact of tariffs on competitiveness, adding that the restrictive trade measures appear to be linked to a “downturn in business sentiment” that could bode badly for the global economy.

Scoring a total of 84.8 points, Singapore is the world’s most competitive economy this year, overtaking the United States, which has fallen to second place. Hong Kong (3rd), the Netherlands (4th) and Switzerland (5th) rounded up the top five.


Category: Economy, Vietnam

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