Hanoi (VNS/VNA) - The outlook for Vietnam’s business environment remainspositive but further digitalisation and streamlining of the administrativesystem are required, a World Bank (WB) expert has said.

Vietnamhas slipped one place in the WB’s Doing Business 2020 Report. It ranks70th in this year’s report compared to 2019’s 69th.

It isalso the second year the Southeast Asian economy’s ranking has declined despiteachieving a higher score. The country scored 69.8 in this year’s report, higherthan the previous two years’ figures of 66.77 (2018) and 68.8 (2019).

In thereport that was released on October 24, the WB ranked 190 economies by 10criteria on starting a business, dealing with construction permits, gettingelectricity, registering property, getting credit, protecting minor investors,paying taxes, trading across borders, enforcing contracts, and resolvinginsolvency.

Of the 10criteria, Vietnam ranks between 25th and 27th in helping firms deal withconstruction permits, access to power and capital funding. The scores in thesethree criteria are 79.3, 88.2 and 80.0, respectively.

Payingtaxes and starting a business are two criteria that were highlighted as needingimprovements by the World Bank.

Thecountry scores 85.1 in “starting a business” and 69.0 in “paying taxes”. Itranks 115th and 109th, respectively.

Protectingminor investors is another issue. Vietnam scored 54.0 and ranked 97th in thereport.

Resolvinginsolvency is the worst criterion as Vietnam scores only 38.0 and ranks 122ndout of 190 economies.

JaquesMorisset, the WB’s Lead Economist and Programme Leader for Vietnam,Macroeconomics, Trade and Investment – told Vietnam News that Vietnamhas made progress in the last eight years and its economy “is much better thanothers with the same per-capita income.”

Theranking “doesn’t mean Vietnam has not approved or implemented reforms” as it isonly relative, he said. “It means Vietnam has made progress but not as fast asother countries.”

Jacquessaid the Vietnamese Government should focus on improving criteria on tradingand tax paying because they are the two sub-categories where Vietnam isperforming the worst.

Astreamlined administrative system is required to boost the economy’s businessenvironment, he said.

“Vietnamhas many regulations and a lack of coordination across ministries. Companiesoften do not know where to go.”

“Vietnamalso has a lot of duplication – the same document and information is oftenneeded multiple times.”

Inaddition, digitalisation will facilitate a faster-growing economy as theauthorities will have less paper to work on and simplify their workflow,Jacques said.

“Vietnamis still growing very fast compared to other economies. Everybody has to beaware that (the global economy) may be more difficult than it used to be.”

“It’sanother reason why Vietnam needs to push for more reforms and a better businessenvironment. If firms can compete and co-operate in a good environment, theywill invest more and create more jobs.”

In theASEAN region, Vietnam was behind Singapore (2nd), Malaysia (12th), Thailand(21st) and Brunei (66th). Following Vietnam were Indonesia (73rd), thePhilippines (95th), Cambodia (144th), Laos (154th), Myanmar (165th) and Timor Leste(181st).

Accordingto the report, East Asia-Pacific economies had improved 33 criteria for small-and medium-sized enterprises (SMEs). However, the region’s overall reforms wereslowing down.

China ledthe region in eight categories. Others included Indonesia and Myanmar, whichmade headway in information, communication and technology.

Progresswas also seen among East Asia-Pacific economies in helping businesses getbetter access to credit, power supply and construction permits. However, limitsremained in enforcing contracts, which requires international practices andarbitrators to resolve./.