Worldwide Tentmakers
Tentmaker Reports
Worldwide Tentmakers Free Reports

Vietnam Report

Entrepreneurial Missions Index

52.35

General Information

Population

86,936,464 (13rd most populous country in the world)

Religions

Languages

Buddhist 9.3% Vietnamese
Catholic 6.7% English
Hoa Hao 1.5% French, Chinese, and Khmer
Cao Dai 1.1% Mountain Area Languages
Protestant

Industries

Food processing, garments, shoes, machine-building, mining, coal, steel, cement, chemical fertilizer, glass, tires, oil, paper

Unless otherwise noted, all information included here was obtained from the World Factbook project 4, conducted by the Central Intelligence Agency (CIA). For more detailed information about Vietnam, visit https://www.cia.gov/library/publications/the-world-factbook/geos/vn.html.

Business Information

The World Bank ranks Vietnam as 0 out of 183 economies in terms of ease of doing business. The country ranks as 0 (of 183) in terms of ease of starting a business.

It requires 0 procedures, takes 0 days, and costs N/A% of income per capita to start a business in Vietnam.

The World Bank ranks Vietnam as 93rd out of 183 economies in terms of ease of doing business.  The country ranks as 116th (of 183) in terms of ease of starting a business.

It requires 11 procedures, takes 50 days, and costs 13.3% of income per capita to start a business in Vietnam.

In order to start a business in Vietnam, one must follow these procedures:

  1. Check the proposed company name; obtain a business registration certificate from the local business registration office under the Department of Planning and Investment
  2. Obtain a seal-making license from the Public Security
  3. Make a company seal
  4. Pick up company seal
  5. Open a bank account
  6. Publish announcement in a daily newspaper
  7. Apply for a tax code at the Municipal Taxation Department; pay business license tax
  8. Buy pre-print VAT invoices from the Municipal Taxation Department or obtain and print self-printed VAT invoices
  9. Register with the local labor office to declare us of labor (Municipal Department for Labor, Invalids and Social Affairs)
  10. Register employees with the Social Insurance Fund for the payment of health insurance and social insurance
  11. Register for trade union with Vietnam General Confederation of Labour

tr_note2}

 

The World Economic Forum (WEF) was founded in 1971 by Klaus Martin Schwab at the University of Geneva in Switzerland.  It is a non-profit foundation best known for its annual meeting in Davos, Switzerland, which brings together top business leaders, international political leaders, selected intellectuals and journalists to discuss both economic and social issues facing the world.  The WEF also serves as a think tank, and publishes a wide range of reports focusing on issues of concern and importance to Forum communities. In particular, Strategic Insight Teams focus on producing reports of relevance in the fields of competitiveness, global risks and scenario thinking.  The Global Competitiveness Report measures competitiveness of countries and economic competitiveness among a wide range of factors such as corruption, tax rates, work ethic, and many others.

 

Vietnam Economic Freedom

The annual survey Economic Freedom of the World is an indicator produced by the Fraser Institute, a libertarian think tank which attempts to measure the degree of economic freedom in the world's nations. Economic Freedom of the World index has been more widely used than any other measure of economic freedom, because of its coverage of a longer time period

Their measure of economic freedom is based on that the following standards:

  • Personal choice rather than collective choice,
  • Voluntary exchange coordinated by markets rather than allocation via the political process,
  • Freedom to enter and compete in markets, and
  • Protection of persons and their property from aggression by others.

A state will rate high when it focuses on protection of people and their property from the actions of aggressors, enforcement of contracts, and provision of the limited set of public goods like roads, flood control projects, and money of stable value and little else, but a country’s rating on the EFW summary index will fall as government expenditures increase and regulations expand.   

1A General government consumption spending as a percentage of total consumption 9.2
Area 1-A Data 8.6
1B Transfers and subsidies as a percentage of GDP 0
Area 1-B Data 0
1C Government enterprises and investment 4
Area 1-C Data 0
1Di Top marginal income tax rate 5
Area 1-Di Data 40
1Dii Top marginal income and payroll tax rates 4
Area 1-Dii Data 42
1D Top marginal tax rate 4.5
1 Size of Government: Expenditures, Taxes, and Enterprises 5.9
2A Judicial independence (GCR) 4.5
2B Impartial courts (GCR) 4.7
2C Protection of property rights (GCR) 5.7
2D Military interference in rule of law and the political process (CRG) 5
2E Integrity of the legal system (CRG) 6.7
2F Legal enforcement of contracts (DB) 6.4
2G Regulatory restrictions on the sale of real property (DB) 8.5
2 Legal Structure and Security of Property Rights 5.9
3A Money growth 6.9
Area 3-A Data 15.3
3B Standard deviation of inflation 9.7
Area 3-B Data 0.7
3C Inflation: Most recent year 8.2
Area 3-C Data 8.89
3D Freedom to own foreign currency bank accounts 0
3 Access to Sound Money 6.2
4Ai Revenues from trade taxes (% of trade sector) 8.2
Area 4-A(i) Data 2.8
4Aii Mean tariff rate 6.6
Area 4-A(ii) Data 16.8
4Aiii Standard deviation of tariff rates 1.9
Area 4-A(iii) Data 20.3
4A Taxes on international trade 5.6
4Bi Non-tariff trade barriers (GCR) 5.1
4Bii Compliance cost of importing and exporting (DB) 6.7
4B Regulatory Trade Barriers 5.9
4C Size of the trade sector relative to expected 10
4D Black-market exchange rates 10
4Ei Foreign ownership/investment restrictions (GCR) 6.6
4Eii Capital Controls 0
4E International Capital Market Controls 3.3
4 Freedom to Trade Internationally 7
5Ai Ownership of banks 0
5Aii Foreign bank competition 0
5Aiii Private sector credit 9.1
5Aiv Interest rate controls/negative real interest rates 10
5A Credit Market Regulations 9.5
5Bi Minimum wage (DB) 6.7
5Bii Hiring and firing regulations (GCR) 5.6
5Biii Centralized collective bargaining (GCR) 5.8
5Biv Mandated cost of hiring (DB) 4.8
5Bv Mandated cost of worker dismissal (DB) 1.9
5Bvi Conscription 0
5B Labor Market Regulations 4.1
5Ci Price controls 0
5Cii Administrative requirements (GCR) 2.9
5Ciii Bureaucracy costs (GCR) 5.9
5Civ Starting a business (DB) 8.2
5Cv Extra payments/bribes (GCR) 3.8
5Cvi Licensing restrictions (DB) 7.2
5Cvii Cost of tax compliance (DB) 0
5C Business Regulations 4.7
5 Regulation of Credit, Labor, and Business 6.1
SUMMARY INDEX 6.22
Rank c 101
 

Vietnam Summary

 

1 World Economic Forum

2 Free the World
Gwartney, James and Robert Lawson with Herbert Grubel, Jakob de Haan, Jan-Egbert Sturm, and Eelco Zandberg (2009). Economic Freedom of the World: 2009 Annual Report. Vancouver, BC: The Fraser Institute. Data retrieved from www.freetheworld.com.

3 World Bank Data

4 World Factbook Project