2015 vietnam globalcompetitiveness index WEF

2: Country/Economy Profiles

Vietnam
Key indicators, 2014

GDP (PPP) per capita (int’l $), 1990–2014

Population (millions) ........................................ 90.6
GDP (US$ billions) ........................................ 186.0
GDP per capita (US$) ................................... 2,053
GDP (PPP) as share (%) of world total ............ 0.47

Vietnam

10,000

Emerging and Developing Asia

8,000
6,000
4,000
2,000
0

Global Competitiveness Index
Rank
(out of 140)

Score
(1–7)

Institutions
7

Innovation

GCI 2015–2016 ...................................................... 56 ..... 4.3
GCI 2014–2015 (out of 144) ..................................... 68 ......4.2
GCI 2013–2014 (out of 148) ..................................... 70 ......4.2
GCI 2012–2013 (out of 144) ..................................... 75 ......4.1

Infrastructure

6
5

Business
sophistication

Macroeconomic
environment

4
3
2

Basic requirements (58.9%) .......................................72 ......4.5

Market size

1st pillar: Institutions ................................................. 85 ......3.7

2nd pillar: Infrastructure ............................................ 76 ......3.8
3rd pillar: Macroeconomic environment .................... 69 ......4.7
4th pillar: Health and primary education ................... 61 ......5.9

Health and
primary
education

1

Higher education
and training

Technological
readiness
Financial market
development

Efficiency enhancers (35.8%) .....................................70 ......4.0

Goods market
efficiency
Labor market efficiency

5th pillar: Higher education and training ................... 95 ......3.8
6th pillar: Goods market efficiency ............................ 83 ......4.2
7th pillar: Labor market efficiency ............................. 52 ......4.4
8th pillar: Financial market development ................... 84 ......3.7
9th pillar: Technological readiness ............................ 92 ......3.3
10th pillar: Market size.............................................. 33 ......4.8

Vietnam

Emerging and Developing Asia

Stage of development

Innovation and sophistication factors (5.3%) .............88 ......3.4
11th pillar: Business sophistication ........................ 100 ......3.6
12th pillar: Innovation ............................................... 73 ......3.2

1

Transition
1–2

Factor
driven

2

Transition
2–3

3

Efficiency
driven

Innovation

driven

The most problematic factors for doing business
Score*

Access to financing ...........................................................12.5
Policy instability .................................................................11.4
Inadequately educated workforce ......................................11.0
Poor work ethic in labor force..............................................9.1
Corruption ...........................................................................9.0
Inadequate supply of infrastructure ......................................8.3
Complexity of tax regulations...............................................7.7
Inefficient government bureaucracy .....................................7.4
Inflation ................................................................................7.1
Tax rates..............................................................................6.8
Foreign currency regulations ................................................2.2
Insufficient capacity to innovate ...........................................2.0
Restrictive labor regulations .................................................2.0
Crime and theft ...................................................................1.9
Government instability/coups ..............................................1.0
Poor public health ...............................................................0.5
0
*

5

10

15

20

25

From the list of factors, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The score
corresponds to the responses weighted according to their rankings.

366 | The Global Competitiveness Report 2015–2016

© 2015 World Economic Forum

30


2: Country/Economy Profiles

Vietnam
The Global Competitiveness Index in detail
INDICATOR

VALUE RANK/140

INDICATOR

1st pillar: Institutions

VALUE RANK/140

6th pillar: Goods market efficiency (cont’d.)

1.01
1.02
1.03
1.04
1.05
1.06
1.07
1.08
1.09
1.10
1.11
1.12
1.13
1.14
1.15
1.16
1.17
1.18
1.19
1.20
1.21

Property rights ....................................................... 3.9 ............96
Intellectual property protection ............................... 3.6 ............88
Diversion of public funds ........................................ 3.4 ............67
Public trust in politicians ......................................... 3.5 ............45
Irregular payments and bribes ................................ 3.2 ..........106
Judicial independence............................................ 3.5 ............86
Favoritism in decisions of government officials ....... 3.2 ............65
Wastefulness of government spending ................... 2.9 ............85

Burden of government regulation ........................... 3.2 ............90
Efficiency of legal framework in settling disputes .... 3.7 ............69
Efficiency of legal framework in challenging regs. ... 3.4 ............79
Transparency of government policymaking............. 3.8 ............89
Business costs of terrorism .................................... 5.0 ............87
Business costs of crime and violence..................... 4.6 ............69
Organized crime ..................................................... 4.8 ............75
Reliability of police services .................................... 3.7 ............97
Ethical behavior of firms ......................................... 3.6 ..........101
Strength of auditing and reporting standards ......... 3.6 ..........130
Efficacy of corporate boards .................................. 4.0 ..........127
Protection of minority shareholders’ interests ......... 3.6 ..........109
Strength of investor protection, 0–10 (best)* .......... 4.7 ..........100

2.01
2.02
2.03
2.04
2.05
2.06
2.07
2.08
2.09

Quality of overall infrastructure ............................... 3.5 ............99
Quality of roads ...................................................... 3.3 ............93
Quality of railroad infrastructure .............................. 3.2 ............48
Quality of port infrastructure ................................... 3.9 ............76
Quality of air transport infrastructure....................... 4.2 ............75
Available airline seat km/week, millions* ............. 917.7 ............30

Quality of electricity supply ..................................... 4.1 ............87
Mobile telephone subscriptions/100 pop.* ......... 147.1 ............28
Fixed-telephone lines/100 pop.* ............................. 6.0 ..........100

3.01
3.02
3.03
3.04
3.05

Government budget balance, % GDP*................. –5.4 ..........115
Gross national savings, % GDP* .......................... 31.1 ............18
Inflation, annual % change* .................................... 4.1 ............85
General government debt, % GDP* ..................... 58.7 ............94
Country credit rating, 0–100 (best)* ...................... 44.0 ............71

4.01
4.02
4.03
4.04
4.05
4.06
4.07
4.08
4.09
4.10

Malaria cases/100,000 pop.* ............................... 29.7 ............26
Business impact of malaria .................................... 4.7 ............40
Tuberculosis cases/100,000 pop.* ..................... 144.0 ..........104

Business impact of tuberculosis ............................. 4.5 ..........103
HIV prevalence, % adult pop.* ............................... 0.4 ............74
Business impact of HIV/AIDS ................................. 4.5 ..........109
Infant mortality, deaths/1,000 live births* .............. 19.0 ............85
Life expectancy, years*......................................... 75.8 ............51
Quality of primary education ................................... 3.7 ............83
Primary education enrollment, net %* .................. 98.0 ............27

5.01
5.02
5.03
5.04
5.05
5.06
5.07
5.08

Secondary education enrollment, gross %* .......... 75.2 ............96
Tertiary education enrollment, gross %*................ 24.6 ............87
Quality of the education system ............................. 3.5 ............78
Quality of math and science education .................. 4.2 ............65
Quality of management schools ............................. 3.5 ..........113
Internet access in schools ...................................... 4.6 ............57
Availability of specialized training services .............. 3.6 ..........111
Extent of staff training ............................................ 3.9 ............73

2nd pillar: Infrastructure

6.06
6.07

6.08
6.09
6.10
6.11
6.12
6.13
6.14
6.15
6.16

No. procedures to start a business* ........................ 10 ..........116
No. days to start a business* ............................... 34.0 ..........119
Agricultural policy costs.......................................... 4.0 ............50
Prevalence of non-tariff barriers .............................. 4.1 ..........100
Trade tariffs, % duty* .............................................. 7.4 ............86
Prevalence of foreign ownership............................. 4.2 ............93
Business impact of rules on FDI ............................. 4.6 ............63
Burden of customs procedures .............................. 3.6 ............90
Imports as a percentage of GDP* ........................ 87.9 ............13
Degree of customer orientation .............................. 4.1 ..........102
Buyer sophistication ............................................... 3.4 ............70

7.01
7.02
7.03
7.04
7.05
7.06
7.07
7.08

7.09
7.10

Cooperation in labor-employer relations ................. 4.3 ............71
Flexibility of wage determination ............................. 5.0 ............67
Hiring and firing practices ....................................... 4.2 ............44
Redundancy costs, weeks of salary* .................... 24.6 ..........108
Effect of taxation on incentives to work .................. 3.7 ............83
Pay and productivity............................................... 4.3 ............45
Reliance on professional management ................... 3.6 ..........109
Country capacity to retain talent............................. 3.2 ............87
Country capacity to attract talent ........................... 3.3 ............77
Women in labor force, ratio to men* ..................... 0.92 ............23

8.01
8.02
8.03
8.04
8.05
8.06
8.07
8.08

Availability of financial services ............................... 3.9 ..........103
Affordability of financial services ............................. 3.6 ..........115
Financing through local equity market .................... 3.9 ............48
Ease of access to loans ......................................... 2.6 ............88
Venture capital availability ....................................... 3.0 ............46
Soundness of banks .............................................. 3.7 ..........124
Regulation of securities exchanges ........................ 3.6 ..........108

Legal rights index, 0–12 (best)* ................................. 7 ............24

9.01
9.02
9.03
9.04
9.05
9.06
9.07

Availability of latest technologies ............................ 4.0 ..........112
Firm-level technology absorption ............................ 3.9 ..........121
FDI and technology transfer ................................... 4.2 ............81
Individuals using Internet, %* ............................... 48.3 ............73
Fixed-broadband Internet subscriptions/100 pop.* .. 6.5 ............79
Int’l Internet bandwidth, kb/s per user* ................ 20.7 ............86
Mobile-broadband subscriptions/100 pop.* ......... 31.0 ............83

10.01
10.02
10.03
10.04

Domestic market size index, 1–7 (best)*................. 4.5 ............35
Foreign market size index, 1–7 (best)* .................... 5.7 ............25
GDP (PPP$ billions)* .......................................... 510.7 ............36
Exports as a percentage of GDP* ........................ 86.7 ............15

11.01
11.02

11.03
11.04
11.05
11.06
11.07
11.08
11.09

Local supplier quantity ........................................... 4.5 ............70
Local supplier quality.............................................. 3.8 ..........105
State of cluster development.................................. 3.8 ............59
Nature of competitive advantage ............................ 2.9 ..........107
Value chain breadth................................................ 3.4 ..........109
Control of international distribution ......................... 3.7 ............80
Production process sophistication.......................... 3.4 ..........101
Extent of marketing ................................................ 3.9 ..........104
Willingness to delegate authority ............................ 3.3 ..........112

12.01
12.02
12.03
12.04
12.05
12.06
12.07

Capacity for innovation........................................... 3.8 ............81
Quality of scientific research institutions ................. 3.3 ............95
Company spending on R&D................................... 3.3 ............57
University-industry collaboration in R&D ................. 3.3 ............92

Gov’t procurement of advanced tech products ...... 3.9 ............28
Availability of scientists and engineers .................... 3.9 ............75
PCT patents, applications/million pop.* .................. 0.2 ............91

7th pillar: Labor market efficiency

8th pillar: Financial market development

3rd pillar: Macroeconomic environment

4th pillar: Health and primary education

5th pillar: Higher education and training

6th pillar: Goods market efficiency
6.01
6.02
6.03
6.04
6.05

Intensity of local competition .................................. 5.0 ............71
Extent of market dominance .................................. 3.8 ............64
Effectiveness of anti-monopoly policy ..................... 3.7 ............77
Effect of taxation on incentives to invest................. 3.6 ............69
Total tax rate, % profits* ....................................... 40.8 ............86

9th pillar: Technological readiness

10th pillar: Market size

11th pillar: Business sophistication

12th pillar: Innovation

Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read
the Country/Economy Profiles” on page 89.
© 2015 World Economic Forum

The Global Competitiveness Report 2015–2016 | 367