Vietnam achieves breakthrough in economic freedom

March 17, 2021 | 15:33

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US-based Heritage Foundation has just published the Index of Economic Freedom 2021, featuring Vietnam for the very first time in the ranks of Moderately Free economies.

vietnam achieves breakthrough in economic freedom

Vietnam soared 15 levels in the index of economic freedom

Vietnam's position in the Index of Economic Freedom rose 2.9 points and 15 levels on-year. Since the annual survey began in 1995, no countries with the same size as Vietnam were able to level up so quickly, according to The National Interest.

An important indicator of a country's performance is its pace of improvement over the years. When the Heritage Foundation first published the index in 1995, Vietnam received 41.7 points. The score grew to 48.1 points in 2005 and then to 49.8 points in 2010, and 51.7 points in 2015. As of 2021, the country scored 61.7 points. Thus, over the past 25 years, Vietnam's score soared by 20 points.

Only five countries with smaller or similar scales kept pace with of Vietnam, including Moldavia, Bulgaria, Belarus, Romania, and Angola.

The increase in economic freedom is indicative of economic growth and improving living standards. Vietnam’s GDP has risen by an average 6.7 per cent a year since 1995, while government expenses have been maintained at about 29.1 per cent of GDP in 2019, much lower than other countries. The rate in the US was 35.7 per cent in the same year.

The Index of Economic Freedom is based on 12 criteria separated into four groups. Vietnam scored especially high in Public Expenditure, National Budget, Providing Tax Relief, Free Trade, and Monetary Freedom.

By Van Anh

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional