Vietnam up six spots in world business ranking

Washington (VNA) - Vietnam moves up six spots to the 65th place out
of 82 countries in the global ranking of business environment for the
2009-2013 period, according to a US-based company.

The Economist Intelligence Unit, with a US-based branch serving companies
establishing and managing operations across national borders, attributed its
ranking to Vietnam 's membership of the World Trade Organisation (WTO).

The country ranks 71st for the 2004-08 period in the firm's previous report.

The firm, in its "Country Forecast October 2008" newsletter, says Vietnam
's membership of the WTO will help to improve the business environment and
Vietnam will make progress in fulfiling its WTO commitment to liberalise
trade.

It writes, in 2009-2010, Vietnam will improve operating enviroment for
private enterprises in line with the implementation of new legislation, and
in 2011-2013, more State-owned enterprises will undertake reforms and be
equitised.

The Economist Intelligence Unit assures world-wide companies that a reformed
personal income tax system will come into effect in January 2009, by then
foreign workers will be taxed the same rates as applied to Vietnamese
workers.

The tax threshold for foreign staff is currently twice as high as that for
local employees. Moreover, in the period from 2009-2010, State-owned
commercial banks will undertake some reforms and in the 2011-13, limits on
the activities of foreign banks will be eased further.

The firm forecast that real GDP growth in Vietnam will drop to 5.3 percent
in 2009, however, it said, foreign investors are still confident about
Vietnam 's long term prospects built up by low cost labour and improved
infrastructure in the 2011-2013 period and soaring foreign direct investment
in 2008.-Enditem