According to the recent World Economic Forum, Vietnam ranks 75th in the Global Competitiveness Report 2012, a slump of ten places compared to last year’s report. Kwakwa attributes Vietnam’s position plunge to issues arising from macro-economic performance, incomplete infrastructure, lack of highly skilled workers, and inefficient management.
Noteworthy is that the WEF used 2011 statistics to evaluate Vietnam’s economy and the situation has changed for the better since early this year.
Kwakwa highlights the success of the Vietnamese Government’s policies aimed at stabilizing the macroeconomy, curbing inflation, both of which promote social security and maintain growth.
She believes these factors will play an active role in elevating Vietnam’s rankings in 2013.
However, the WB Country Director warns that Vietnam needs to increase the competitiveness of its business climate if it wants to achieve its goal given global fierce competitions.
The WEF report points out that Vietnam has not effectively operated public investment programmes, nor successfully controlled operations of state-owned enterprises (SOEs).
To deal with the issues, Kwakwa suggests that Vietnam ensure an equal playing field exists between SOEs and private enterprises, promote transparency in financial management, and improve the selection of public investments.
She encourages the country to speed up administrative reform by simplifying bureaucracy and applying modern technology in business and state management while settling bad debts in the banking sector.
Photo Credit: The Voice of Vietnam