In Washington, D.C.:
Nadine Ghannam
Phone: +1 (202) 473-3011
E-mail: nsghannam@ifc.org
In Hanoi, Vietnam
Chu Van Anh
Phone: +844 3824 7892
Email: canh1@ifc.org
In Hong Kong
Hannfried von Hindenburg
Phone: +852 2509 8115
E-mail: hvonhindenburg@ifc.org
Hanoi, Vietnam, September 9, 2009 — Vietnam cut business taxes in 2008/2009, joining many other economies in East Asia and the Pacific in strengthening business regulations to help increase opportunities for local firms. Three economies from the region—in order, Singapore, New Zealand, and Hong Kong (China)—led the world in ease of doing business.
Between June 2008 and May 2009 a record 131 of 183 economies around the globe reformed business regulation, according to Doing Business 2010: Reforming through Difficult Times, the seventh in a series of annual reports published by IFC and the World Bank. In East Asia and the Pacific 17 of 24 economies made reforms against the backdrop of the global economic crisis.
“Business regulation can affect how well small and mid-size firms cope with the crisis and seize opportunities when recovery begins,” said Penelope Brook, Acting Vice President for Financial and Private Sector Development at the World Bank Group. “The quality of business regulation helps determine how easy it is for troubled firms to survive difficult times, how fast local entrepreneurs will start investing again and how quickly new business can get started.”
Vietnam cut the corporate income tax rate from 28 percent to 25 percent and eliminated the surtax on income from the transfer of land. It also adopted a new enterprise income tax law and value added tax law. In addition, increasing competition in the logistics industry and the application of new customs administration procedures as part of the World Trade Organization (WTO) membership reform program have reduced trade delays. Overall, Vietnam was ranked 93 on the global ease of doing business rankings, virtually unchanged from 91 last year.
As a result of its reforms, Indonesia—the region’s most active reformer this year—moved up to 122 from 129 on the global ease of doing business rankings. Indonesia cut the time required to start a business by 16 days and the time to transfer a property by 17 days. The country also strengthened disclosure requirements for related-party transactions to protect investors.
Singapore, a consistent reformer, is the top-ranked economy on the ease of doing business for the fourth year in a row, with New Zealand as runner-up. Singapore introduced online and computer-based services to ease business start-up, construction permits, and property transfers.
Other reforms occurred throughout the region. Thailand eased business start-up and ranks twelfth globally on the ease of doing business. China made it easier for domestic firms to trade by relaxing rules on trade credit. The Philippines introduced new insolvency rules to make it easier to reorganize firms. The Pacific island economies also continued to pick up the pace of reform. Fiji, Papua New Guinea, Samoa, Tonga, and Vanuatu reformed in areas including starting a business, getting credit, paying taxes, and enforcing contracts.
Doing Business ranks 183 economies based on 10 topics of business regulations that track the time and cost needed by domestic companies to meet business regulations such as starting and operating a business, trading across borders, paying taxes, or closing a business… Doing Business does not measure all aspects of the business environment that matter to firms and investors. For example, it does not measure security, macroeconomic stability, corruption, skill level, or the strength of financial systems.
About the World Bank Group
The World Bank Group is one of the world’s largest sources of funding and knowledge for developing countries. It comprises five closely associated institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in the mission to fight poverty and improve living standards for people in the developing world. For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org.
For more information about the Doing Business report series, please visit: www.doingbusiness.org
For more information on Doing Business 2010, please contact:
Nadine Ghannam +1 (202) 473-3011
E-mail: nsghannam@ifc.org
Rebecca Ong +1 (202) 458-0434
E-mail: rong@worldbank.org
Contacts for region-specific queries on Doing Business 2010:
East Asia and the Pacific
Hannfried von Hindenburg +852 2509 8115
E-mail: hvonhindenburg@ifc.org
Mohamad Al Arief +1 (202) 458-5964
E-mail: malarief@worldbank.org
Hanoi
Chu Van Anh +844 3 824 7892
E-mail: canh1@ifc.org
Nguyen Hong Ngan +844 3934 6600
E-mail: nnguyen5@worldbank.org
