Vietnam Dropped in Global Competitiveness Index 2009
According to World Economic Forum, Switzerland tops the overall ranking in the Global Competitiveness Report 2009-2010. Due to the economic recession and the weakening macroeconomic stability, the United States falls one place to second position. Top 10 countries followed Switzerland and US are Singapore, Sweden, Denmark, Finland, Germany, Japan, Canada, and Netherlands.
Vietnam falls from the 70th to the 75th position due to the weakening macroeconomic conditions (down from 70th to 112th). The increase of trade deficit and inflation rate lowers the investors’ confidence. The World Economic Forum report raised that Vietnam needs to stabilize the factors of macro economy to take advantage of its competitive industries.
Some of the factors that cause Vietnam to have a low score are the quality of infrastructure (113/115), electricity supply power (103/133), budget deficit (103/133), costs for basic education (103/133), quality of Management School (111/133), time to start new businesses (111/133), custom tariffs (126/133), ability to protect investors (126/133). In Southeast Asia, Vietnam is after Singapore (3), Malaysia (24), Brunei (32), Thailand (36), and Indonesia (54). It’s only above Philippines (87) and Cambodia (110).