Vietnam ranks 17th out of 40 countries in the Asia-Pacific region and Vietnam’s overall score is also higher than the regional and world averages. According to the Heritage Foundation, ratings are likely to improve further if the government takes additional action to liberalize investment rules and the financial sector.
It is the first time that Vietnam is in the group with the average index of economic freedom.
This year’s index is measured by the Heritage Foundation across 184 economies. This is the 27th consecutive year this index has been published. This organization measures by based on 12 quantitative and qualitative factors, grouped into the four “pillars” of economic freedom.
These include: The rule of law (property rights, government integrity, judicial validity); Size of government (government spending, tax burden, financial health); Management efficiency (business freedom, labor freedom, currency freedom); Open market (free trade, investment freedom, financial freedom).
Each of the 12 constituent rights mentioned above is scored on a scale from 0 to 100. The overall score for a country is calculated by taking the average of the twelve rights, with equal weight. together.
With 89.7 points, Singapore maintained the second leading year in the world in terms of economic freedom index and also ranked first among 40 countries in the Asia-Pacific region. The country’s score is much higher than the regional and world averages. In addition, Singapore remains the only country in the world that is considered economically free in all index categories. The remaining four economies in the top 5 include: New Zealand, Australia, Switzerland and Ireland.
This is also the first year the Vietnamese economy entered the group of “moderately free” economies, up 15 places from last year, from a group that is considered to be almost economically free.