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Milk production chain at Vietnam Dairy Products Joint Stock Company (Vinamilk). Enteprises in Vietnam have to spend 40.8 per cent of their profits in tax payment, according to the World Bank's annual Doing Business 2015 report. — Photo vnexpress.net
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HA NOI (Biz Hub) — Viet Nam has dropped six steps to 78th rank among 189 economies in the World Bank's annual Doing Business 2015 report.
The report, released last October 29, measures and tracks changes in regulations affecting 11 areas in the life cycle of a business. Rankings on the aggregate ease of doing business are based on the distance to frontier scores for 10 topics and cover 189 economies.
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| Viet Nam and other countries rank on the ease of doing business. |
Compared with last year, Viet Nam failed in five topics. The country fell down five steps to 125th rank on the index for starting a business, slid down six steps to 36th rank on getting credit and dropped a step to 75th rank for trading across borders. It also slid down two steps to 117th rank for protecting minority investors and fell down two steps to 173rd rank for paying taxes.
According to the report, enterprises in Viet Nam need to spend 872 hours per year to complete tax procedures. This is much more time than required in four Southeast Asian countries: 362 hours for Laos, 173 hours for Cambodia, 264 hours for Thailand and 82 hours for Singapore.
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| The graph shows the result of 10 areas in Viet Nam measured by Doing Business 2015 report. |
Tax payments take up 40.8 per cent of companies' profits in Viet Nam. In contrast, tax payments take up 25.8 per cent of companies' profits in Laos, 21 per cent in Cambodia, 26.9 per cent in Thailand and 18.4 per cent in Singapore.
But Viet Nam experienced a one-step increase in rankings for two topics: dealing with construction permits, from 21st to 22nd rank, and registering property, from 32nd to 33rd rank.
The country's ranking remained the same for three other topics: getting electricity, enforcing contracts and resolving insolvency.
Singapore continues to lead the world in ease of doing business, followed by New Zealand and Hong Kong SAR of China. Among countries in Southeast Asia, Malaysia placed 18th and Thailand 26th overall, ahead of Viet Nam, which at 78th was ahead of the Philippines at 95th, Indonesia at 114th, Cambodia at 135th and Laos at 148th. — VNS