Vietnam ranked fifth for global market growth

illustration photo - Samsung Thai Nguyen -source Pcworld

The Grant Thornton Global Dynamism Index (GDI) is an annual research project designed by the Economist Intelligence Unit and commissioned by Grant Thornton, which ranks the development of of the world’s 60 largest economies business growth environments over the past 12 months. Dynamism in the research refers to changes in an economy that are likely to lead to fast future growth rates.

The market growth ranking considers domestic market opportunities in terms of GDP, consumer spending and stock market growth. According to the GDI’s results, Mainland China, India, and Malaysia took the top three positions, followed by Nigeria and Vietnam in the fourth and fifth place, respectively. Researchers at Grant Thornton noted that despite sluggish global outlooks, most emerging markets in the Asia–Pacific region, including Vietnam, still expanded at a rapid pace over the past year.

“Growing markets obviously attract dynamic businesses looking for international opportunities, reinvigorating demand for products and services that may have stagnated domestically,” said Gernot Hebestreit, global leader for clients and markets at Grant Thornton.

Countries with tepid growth prospects, such as those in the European Union, Japan and Latin America, sat at the bottom of the list, signalling a sluggish year for these regions.

Vietnam also showed significant improvements in the labour and human capital section of the GDI, which analyses labour productivity growth, unemployment, time spent in education, and population dynamics. The country is ranked seventh from the top in the global ranking and fifth amongst the Asia–Pacific countries.

However, Grant Thornton researchers stressed that developed economies still offer dynamic businesses a sound and stable growth environment, despite their lagging growth rates. Indeed, the most developed Asia–Pacific countries still claim the highest seats in terms of a favourable business operating environment, financing environment, labour market, and technology.

According to Grant Thornton’s evaluation, the most impressive economy was found to be Singapore, which can now boast the world’s best financing environment while also standing impressively high on the Global Dynamism Index (GDI) ranking, a combination of 22 indicators across five growth areas designed to identify the best business growth environments. Researchers commented that this grand achievement reflects Singapore’s robust, open and broad-based approach to dynamic businesses.

On the contrary, Vietnam has unfortunately dropped three positions to be 29^th globally in terms of its financing environment. This evaluation sheds dark light on the country’s domestic financial regulatory system, capital accessibility, inward M&A deals and direct investment, private sector indebtedness, and corporate tax burden. Vietnam’s overall position in the GDI also fell one place, to the 29^th.