Latest World Bank Doing Business survey shows Vietnam moving up rankings for overall ease of doing business and tax regulation
The country is up three places for overall ease of doing business, and up four places for improvements to its tax regime
Published annually, the World Bank Doing Business project provides objective measures of business regulations for local firms in 189 economies worldwide. Member firms of the Russell Bedford International audit network, including Russell Bedford KTC Associates (RBK), have again contributed data to the report’s Paying Taxes survey.
This year’s report, Doing Business 2016: Measuring Regulatory Quality and Efficiency, shows Vietnam improving its key rankings on doing business and tax regulation – a situation perhaps attributable to recent reductions in profits tax, down from 17 percent last year to 14.5 percent now.
Businesses in Vietnam are still having to spend 770 hours per year on meeting their tax compliance obligations, however. While this is an improvement on the 872 hours recorded last year, it is still far in excess of the average 201.4 hours recorded across East Asia and the Pacific.
RBK Managing Partner Hung Duy Pham commented: “It is, of course gratifying to see Vietnam improving its rankings in such a major report. But, as every business owner knows, tax compliance in Vietnam remains disproportionately onerous in comparison with other emerging economies. Further reform is needed here, including greater use of (and access to) online filing facilities.”
About Russell Bedford KTC Associates
Established in 2006, Russell Bedford KTC Associates (RBK) has since grown to become a full-service audit and accountancy firm, staffed by a team of qualified professionals (including local and international Certified Public Accountants (CPAs)) with experience across a range of industries. The firm’s clients include small and medium foreign invested enterprises, representative offices, Vietnamese joint-stock companies, and not-for-profit organisations.
Hung Duy Pham
Level 4, GP Invest building, 170 La Thanh street, Dong Da District
Tel.: +84 4 6277 6386
About Russell Bedford International
Established in 1983, Russell Bedford International is a global network of independent firms of accountants, auditors, tax advisers and business consultants. Ranked amongst the world’s leading accounting and audit networks, Russell Bedford is represented by some 460 partners, 5000 staff and 200 offices in more than 80 countries in Europe, the Americas, the Middle East, Africa and Asia-Pacific. Russell Bedford International is a member of EGIAN, the European Group of International Accounting Networks and Associations.
Russell Bedford International
3rd Floor, Paternoster House
65 St Paul's Churchyard, London EC4M 8AB
Tel.: +44 20 7410 0339
About the World Bank Doing Business project
The Doing Business project provides objective measures of business regulations and their enforcement across 189 economies and selected cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 189 economies that Doing Business has ranked.
The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 189 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the two largest business cities. The project has benefited from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world.