Vietnam exceeds expectations for IT application, economic development
Thanks to the application of information technology (IT), combined with a high economic growth rate and friendliness with foreign trade, Vietnam has won plaudits for its global connection ability.
Inside a lab of a Vietnamese mobile network operator which was opened in 2017. Photo: Hai Dang
In DHL’s latest report, Vietnam was praised by international experts for its information technology application and stable politics, plus its maximum support for trade and business.
DHL and the NYU Stern School of Business released the 2021 update of the DHL Global Connectedness Index (CGI). This report, in its 10th year, provides a fresh view on the impact of the Covid-19 pandemic on globalization by analyzing international flows of trade, capital, information and people.
In 2020, Vietnam ranked 38th out of 139 countries in the DHL Global Connectedness Index. The report also cited data from a third party, saying that Vietnam ranked 1st in supporting trade and business out of 48 countries assessed.
In the report titled "The 10 Year Lessons of the DHL Global Connectedness Index", researchers chose Vietnam along with the Netherlands, the United Arab Emirates (UAE), Sierra Leone, and Mexico as examples for their outstanding performance over the past two decades.
The analysis pointed out the factors that helped Vietnam have a very good ranking in the DHL Global Connectedness Index. Vietnam is among the countries that has gone beyond expectations in terms of economic development and friendliness to foreign markets.
In 1985, Vietnam's GDP per capita was only about US$500, among the poorest countries in the world. Thanks to its door-opening policy, Vietnam is now in the lower middle-income group, with GDP per capita of $2,715.
Vietnam ranked 58th according to the Global Peace Index 2019. This factor helped Vietnam increase its CGI score.
The domestic business environment in Vietnam has improved impressively. Vietnam ranked 67 out of 138 on this in the DHL Global Competitiveness Index report, and as the country with the most improvement. Particularly, the most obvious improvement was in IT and the financial system.
Vietnam has also issued policies to promote international flows, especially focusing on trade in goods, which contributed to pushing Vietnam to the 5th position in terms of trade. This is thanks to Vietnam’s active signing of and participation in regional and global trade organizations.
Although Vietnam ranks high in trade criteria, Vietnam scores lower points in other areas.
For example, except for 24 countries that are exempt from visas, Vietnam requires citizens of the other remaining countries to secure a visa upon entry. Vietnamese citizens also must have a visa to travel to most foreign countries (only 54 countries exempt visas for Vietnamese visitors).
In addition, Vietnam is a member of the Association of Southeast Asian Nations (ASEAN) but only 12% of its total trade, capital, information and people flows link with ASEAN countries, making it the least regionally focused country in the bloc, compared to Thailand with 28%, Cambodia 35%, and Laos 61%.
However, Vietnam is a global bright spot in terms of supporting trade and business relationships. In the Pew survey, 95% of respondents praised the country in this regard, the highest level among all countries surveyed since 2014.
At the same time, 88% of Vietnamese respondents to Pew's survey said that life is better today than 50 years ago. This is higher than any of the 37 countries surveyed, and more than double the global average.
Vietnam ranked 44th out of 132 countries and economies in the Global Innovation Index 2021 (GII 2021) which was announced by the United Nations' World Intellectual Property Organisation (WIPO) on September 20.