Vietnam has risen 16 places to the 59th spot in global economic competitiveness rankings, the World Economic Forum said in an annual report.
The country has improved in ten of the 12 "pillars" used to measure the competitiveness index, according to the Global Competitiveness Report released Thursday.
"Among the country's competitive strengths are its efficient labor market (30th) and its impressive innovation potential given its stage of development (49th), including its relatively large market size (35th) with a particularly large export market," the report said.
However, the report pointed out that trade in Vietnam is still hindered by high import tariffs and customs procedures. Besides, the government's budget deficit remains high, "contributing to rising public debt and pointing to a need to continue efforts toward macroeconomic stability," it said.
Another major challenge for Vietnam is it infrastructure, which is strained by rapid economic growth, according to the report.
Switzerland topped the overall rankings for the second year in a row while the US fell two spots to number four, overtaken by Sweden (2nd) and Singapore (3rd).