Vietnam, though having made it easier for business doing in the country, needs to accelerate reform so as to become more competitive within the Asia-Pacific region, according to a freshly-issued report by the International Finance Corporation and the World Bank.

According to the "Doing Business 2007: How to Reform" released here Wednesday, Vietnam is ranked 104 out of 175 countries and regions in terms of the ease of doing business, although the country has slashed the documents and time required to get building permits and allowed employers to use fixed-term contracts for any type of task, making hiring easier.

Vietnam lacks minority shareholder protection against directors' misuse of corporate assets, ranking 170 out of 175 countries and regions. The report says Vietnam does not have the necessary legal framework and practice to govern directors' liabilities or the rights of minority investors.

It is difficult to close a business in Vietnam. The report ranks Vietnam 116 out of 175 countries and regions, saying the average time to complete a bankruptcy case in the country is five years, with a recovery rate of only 18 percent.

Vietnam ranks 120 out of 175 countries and regions on the ease of paying taxes. The report says Vietnamese businesses require an average of 1,050 hours, equivalent to 130 staff days, to complete procedures relating to paying taxes.

Published annually by International Finance Corporation and the World Bank, "Doing Business" assess the ease in doing business in a country or region based on 10 factors: starting a business, dealing with licenses, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts, and closing a business.

Singapore became the most business-friendly economy in the world in the 2005-2006 period, as measured by the Doing Business indicators, after last year's winner, New Zealand, made business licensing more difficult.

The runner-up economy in the Asia-Pacific region is China's Hong Kong (ranking fifth in the world), followed by Thailand (18) and Malaysia (25). Laos (159) and Timor-Leste (174) are ranked lowest in the region.

Source: Xinhua