The country has been ranked 90th by the World Bank this year, moving up three spots
Taxpayers submit papers at Hanoi's tax office. Photo: Ngoc Thang
Vietnam moved three places to the 90th position out of 189 economies in the World Bank's Doing Business report released Wednesday.
The country's score on a scale of 0-100 increased from 60.35 to 62.1, indicating an improved environment for businesses, according to the report.
Vietnam's ease of doing business was above the average of the East Asia-Pacific regional, and better than some of other neighboring economies such as the Philippines, Indonesia and Laos, which were ranked 103rd, 109th and 134th.
However, it was far behind Malaysia and Thailand, at 18th and 49th respectively.
Singapore topped the ranking again, followed by New Zealand and Denmark.
Despite the improvement, Vietnam performed below the regional averages in six out of 10 areas which the World Bank based on to rank an economy.
The country, for instance, was ranked 119th when it came to starting a business, while the region's average position was 103.
It took a business 10 procedures and 20 days to set up in Vietnam, according to the report, estimating establishment costs at roughly VND1.9-2.1 million (US$84-93).
In terms of paying taxes, Vietnam was far below other economies in the East Asia-Pacific, ranked 168th compared to the average position of 84.
Companies made 30 tax payments on average a year in Vietnam and it took them 770 hours to file, prepare and pay taxes, the World Bank said.
A company could spend 39.4 percent of its profit paying all regulatory taxes, including income tax and value added tax.
The report also showed Vietnam's below average performance when it came to getting electricity, protecting minority investors, trading across borders, and resolving insolvency.