Report outlines VN weaknesses

Viet Nam ranked the 91st out of 118 nations listed in the Global Enabling Trade Report for 2008. The floor ranking was attributed to market access deficiencies, released by the World Economic Forum.

The fundamental objective of the report was to explore the factors enabling trade in individual economies.

"By providing detailed assessments of trade-enhancing environments in countries world-wide, the results can be used by all stake-holders to work together to increase their participation in the global economy, thereby contributing to national growth and prosperity," the report stated.

The enabling-trade index relies on four sub-indicators - market access, border administration, transport and communication infrastructure, and business environment.

Among those for Viet Nam, market access was the worst factor, ranking 112 out of 118 nations - and was the lowest among the Association of South East Asian Nations (ASEAN).

Poor market access mainly stemmed from the weight of tariff and non-tariff barriers.

Other sub-indicators of border administration, transport and communication infrastructure, and business environment ranked 76,75 and 62 respectively.

To calculate the four major indicators, there are some 40 factors to take into account.

Out of those factors, the nation's tariff barrier, openness to multilateral trade rules, irregular payments for exports and imports, airport density, and prevalence of foreign ownership reflected weakness.

However, there is no information to rate customs services and road congestion in Viet Nam, which are also considered the nation's weak points.

The report highlighted the market diversification of Vietnam's trade for 2006. The data showed the US accounted for 18.3% of total export market share, while China was the largest importer with 16%. (Viet Nam News)