Meeting held to determine factors used in business environment rankings.
The Central Institute for Economic Management CIEM held a conference on March 12 with experts from the Word Bank (WB) on improving Vietnam's business environment indicators.
CIEM invited WB experts to discuss how they evaluate and rank the business environment, in order to find solutions for Vietnam to improve its efforts in this regard.
As an example, gaining an initial connection to a three-phase electricity power supply at a warehouse in Ho Chi Minh City took way longer than in South Korea, according to a report prepared by WB experts Ms. Nadine Abi Chakra and Ms. Joanna Nasr.
The research showed that the total time for initial electricity connections in Vietnam is around 115 days, due to the customers having to working with a number of different agencies.
Vietnam is ranked 135/189 in the Ease of Doing Business Index (EBDI), lower than Laos, ranked at 128, meaning electricity access in Laos is simpler and cheaper than in Vietnam.
According to WB experts, there are 107 countries cutting their approval processes so that customers do not have to work with so many agencies.
Resolution No. 19, issued in early 2014, aimed at improving Vietnam's business environment index by the end this year, to exceed the average level in ASEAN-6 countries (Singapore, Malaysia, Thailand, the Philippines, Indonesia, and Brunei). After one year of implementation, however, the government has set additional tasks for ministries and local departments because more than half of the solutions in the Resolution have not been achieved, and Vietnam's business environment remains evaluated as having low competitiveness in the region.
"If the business environment in Vietnam is to reach the average level of ASEAN-4, it has to be closer to Thailand," said Mr. Nguyen Dinh Cung, Director of CIEM. His statement reveals that the government will have to continue to put efforts into improving the business environment over the next three to five years, a key period in the country's international integration process, after it completes negotiations on free trade agreements (FTAs) with key countries and becomes part of building the ASEAN Economic Community (AEC).