Vietnam jumps five positions to 70th place according to the Global Competitiveness Index (GCI) for the 2013-2014 period.
The report gives ratings of 148 economies around the world based on 12 sections that were classified into three major groups: basic requirements, efficiency enhancers and innovation and sophistication factors.
Vietnam’s progress is mainly the result of a slightly better macro-economic environment, lower inflation rate as well as improved quality of transport and energy infrastructures.
Its macro-economic environment index place is 87th, up 19 positions, while inflation rate was cut back to single-digit levels in 2012.
Vietnam also advanced in the goods market efficiency section, to 74th place, up 17 places, thanks to lower trade barriers and a lower tax rate on businesses.
Despite these encouraging developments, the foundation of Vietnam’s economy and prosperity remains fragile. The country ranks no higher than 57th in any of the sections except the market-size section that places it in 36thposition.
It loses ground in several areas of the Index, including labour market efficiency (56th, down five), and financial market development (93rd, down five).
Another area of concern is technology readiness (102nd, down four); although new technologies were spreading throughout the population, Vietnamese businesses have been particularly slow to adopt the latest technologies for business use (128th).
The GCI places Switzerland at the top of the ranking for the fifth year running. Singapore and Finland remain in second and third positions respectively.
Germany moves up two places (4th) and the United States reverses a four-year downward trend, climbing two places to fifth.
Hong Kong Special Administrative Region (7th) and Japan (9th) also close the gap on the most competitive economies, while Sweden (6th), the Netherlands (8th) and the United Kingdom (10th) fall.