Vietnam Daily News

Vietnam slips 4 spots in global financial market

Written by Dailynews.vn Friday, 16 December 2011 17:45

Despite falling four spots in the ranking of global financial markets (from 46th to 50th place), the banking services in Vietnam again ranked No. 30 and rated as effective by the World Economic Forum.

World Economic Forum (WEF) today announced Global Financial Development Report 2011, in which Vietnam ranked 50 of a total of 60 countries and territories in its ranking. This ranking fell four spots from the 2010 report as Vietnam received only 2.98 points (on a scale of 7), down by 0.05 points from last year.

On the macro factors, Vietnam was rated fairly high for the political stability (ranked 48/60). However, like two other countries with similar conditions including Indonesia and Bangladesh, the development of Vietnam's financial market is facing major barriers in the business environment as well as the economic regime has changed slowly. Indicators of business environment and financial stability therefore stood at No. 53rd of the 60 economies.

Despite the recent problems of liquidity and bad debts, the banking services in Vietnam were highly appreciated when being put in the average threshold (30). According to the WEF, this system has worked quite efficiently and as of 2009, it provided about $73 billion credit to the economy, accounting for more than a half of the value of financial assets.

Despite the accessibility of financial services for people has improved considerably in recent years (also ranked 30/60), the quality of non-banking services and financial market in general of Vietnam was underestimated when only it was ranked 48 and 49 of the economies.

Besides, Vietnam was strongly underrated by the quality of corporate governance. According to the WEF from 2008 to now, most countries have lost points in this category (only 8/60 economies got the points up, in which Saudi Arabia gained the largest increase, added 0.78 points). Vietnam's corporate governance declined only moderately (0.34 points compared with Korea which posted the biggest fall in terms of this category as it lost 1.12 points) but most of this point of Vietnam (0.29 points) has been lost within a recent year.

As for the overall rankings, Hong Kong (China) is the most developed economy in the world in 2011 with a score of 5.16/7. The top five also include US, UK, Singapore and Australia. Besides Hong Kong, Singapore and Vietnam, Asia also has 12 other representatives entering the rankings this year, including Japan (8), Malaysia (16), Korea (18), China (19), Thailand (35), India (36), Philippines (44), Kazakhstan (46), Indonesia (51), Pakistan (55) and Bangladesh (56).

Source: www.intellasia.net/news/articles/finance/111350955.shtml