The Doing Business 2018 report shows that Vietnam, along with Indonesia, has implemented the most reforms in the past 15 years, with 39 reforms.
At present in Vietnam, an entrepreneur in Ho Chi Minh City spends 22 days and 6.5% of income per capita registering a new company, compared to 61 days and 31.9% in 2003, the World Bank noted.
The ranking is based on a composite score calculated by measuring various aspects of regulations covering eleven sets of indicators, ranging from dealing with construction permits and gaining electricity access to receiving credit and paying taxes.
According to Doing Business 2018, Vietnam has made numerous reforms to facilitate businesses in getting electricity and credit, paying taxes, trading across borders and enforcing contracts in the last 12 months.
Specifically, Vietnam has increased the reliability of its power supply by rolling out an automatic energy management system for the monitoring of outages and the restoration of services, as well as strengthening access to credit by broadening the scope of assets that can be used as collateral.
In addition, the country has abolished the 12-month mandatory carry-forward period for VAT credit and introduced an online platform for filing social security contributions, whilst upgrading the automated cargo clearance system and extending the operating hours of the customs department.
Another reform considered as making it easier to enforce contracts is the adoption of a new civil procedure code and the introduction of a consolidated law on voluntary mediation.
In the Asia-Pacific region, the top-ranked economies are Singapore (2) and Hong Kong (5), while the lowest ranked economies are Myanmar (171) and Timor-Leste (178).
