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Vietnam Climbs Six Spots in Global Business Ranking - Vietnam Briefing News

Oct. 20 – Vietnam climbed six spots to reach 65th place according to a world business ranking conducted by a London-based business intelligence company.

The ranking was done by the Economist Intelligence Unit (EIU) and included a total of 82 countries.The EIU looked at each country's business environment for the years 2009-13. In its 2004-08 reports, Vietnam had previously ranked at 71st place.

The EIU said that Vietnam's climb was due to its membership to the World Trade Organization that should help develop its business environment and its WTO commitment to liberalize trade.

In the following years, Vietnam is expected to improve its operating environment for private enterprises in line with new legislation, and eventually more state-owned enterprises will implement reforms and be equitized.

The report assures companies that by Jan. 1, 2009, the new personal income tax system will tax foreign workers and locals at the same rates.

Currently, the tax threshold for foreign staff is double to that of Vietnamese employees. In addition, state-owned commercial banks will be reformed by 2011-13, and restrictions on foreign banks will be reduced.

EIU predicts that real GDP growth in Vietnam will decrease to 5.3 percent next year although foreign investor confidence in the country is not expected to erode because of Vietnam 's long term prospects to develop low cost labour and infrastructure.