The World Economic Forum (WEF) emphasizes that Vietnam is the country with the strongest increase in competitiveness …
A textile factory in Vietnam – Photo: Business Times.
Vietnam jumped 10 places in the World Economic Forum’s (Global Competitiveness Index) 2019 report (WEF). Singapore surpassed the United States to become the best competitive economy in the world.
To make a ranking of 141 countries and territories, WEF experts analyzed 103 key indicators such as inflation, digital skills and trade tariffs. These indicators are organized into 12 pillars, including institutions, macroeconomic stability, and health.
The results showed that Vietnam reached 61.5 / 100 points, an increase of 3.5 points compared to 2018. With this score, Vietnam ranked 67th in the ranking, increased 10 places compared to last year. The WEF emphasizes that Vietnam is the country with the strongest increase in competitiveness in the world in this year’s ranking.
India, Asia’s leading emerging economy, dropped by 10 places, ranked 68th, behind Vietnam.
In Southeast Asia, Vietnam ranks behind Singapore (ranked 1), Malaysia (27), Thailand (40), Brunei (56), and the Philippines (64); at the same time standing above Cambodia (106) and Laos (113).
China ranked 28th, no change compared to last year.
The United States, which ranked No. 1 in the 2018 ranking, has dropped one rank in this year’s ranking. The United States is now in the second place. However, the WEF emphasizes that the United States remains a “creative power”.
The United States is highly rated for such criteria as the availability of highly qualified human resources and venture capital, but receives relatively low scores in some categories due to increased tariffs, reduced life expectancy … that the average life expectancy in the United States today is 66 years, lower than China’s 68 years.
Singapore, ranked No. 1, scored high on public sector criteria, workforce, diversity, and infrastructure. The country also ranks in the first place in life expectancy, with babies born in the lion island nation expected to live an average of 74 years.
The top 10 most competitive economies ranked include Singapore (84.8 points); USA (83.7); Hong Kong (83.1); Netherlands (82.4); Switzerland (82.3); Japan (82.3); Germany (81.8); Sweden (81.2); England (81.2); and Denmark (81.2).
The average score of 141 economies in the ranking is 61 points. At the bottom of the ranking is African nation Chad, with a score of 35.1 points.
The WEF emphasizes that geopolitical instability and increased trade tensions are leading to uncertainty and can lead to a global economic slowdown. However, according to the WEF, some countries are benefiting from the diversion of trade flows, such as Singapore and Vietnam.
The report calls for policy makers to step up the implementation of the social policies necessary to prepare people for the fourth industrial revolution. According to the WEF, many of the largest and most innovative economies such as South Korea, France, China, India and Brazil possess educational systems that have not yet caught up with their respective levels of creativity.
Another WEF concern is a widespread economic slowdown, even though central banks across the globe have pumped more than $ 10 trillion in total in the economy over the decade. by. According to the report, monetary policy has begun to “run out of breath” in supporting growth. Therefore, the task of supporting growth began to fall more on fiscal policy.