In terms of the social pillar, Vietnam has risen to eighth, higher than middle income countries such as China, Thailand and Malaysia, thanks to curbing inequality and improving labour standards (Photo Sustainable Trade Index 2018) Hanoi (VNS/VNA) - Vietnam rankedninth out of 20 economies in the Sustainable Trade Index 2018 released by theHinrich Foundation last week.
The index seeks to measure the capacity of 20economies – 19 in Asia along with the US – to participate in the internationaltrading system in a manner that supports the long-term domestic and globalgoals of economic growth, environmental protection, and strengthened socialcapital.
The index includes 24 indicators, grouped ineconomic, social and environmental pillars, that together measure whether acountry is engaged in sustainable trade.
According to the report, Vietnam’s sustainabletrade index ranks ninth in the list of 19 Asian economies plus the US, up twopoints in comparison with 2016’s result and up six points in index performancerelative to the gross domestic product (GDP) per head, which is currentlyranked 15th.
For the economic pillar,the Vietnam’s index has improved, especially on reducing non-tariff barriersand attracting foreign investment. In addition, Vietnam has achieved a highlevel of market openness, reflecting the openness of trade and cross-bordertrade.
Stephen Olson, researchfellow from the Hinrich Foundation, said that Vietnam was a country with asolid track record of moving towards sustainable trade. In the economic sphere,along with impressive GDP growth, Vietnam was also very open to trade. Thesigning of the CPTPP was a demonstration of Vietnam’s commitment to tradeliberalisation, he stated.
In terms of the socialpillar, Vietnam has risen to eighth, higher than middle income countries suchas China, Thailand and Malaysia, thanks to efforts curbing inequality andimproving labour standards.
However, on theenvironment pillar, Vietnam has decreased by 10.4 points and 5 places comparedto 2016, due to high rates of deforestation.
The Hinrich Foundationsuggested that Vietnam needed to overcome basic weaknesses such as reducingtrade costs related to infrastructure, logistics and other costs from the legaland management system; reduce the risks of trade payments, and reduce the rateof deforestation and pollution of water resources due to commercial productionand corruption.
The report was developed by the non-profitfoundation Hinrich Foundation and British research and analysis firm TheEconomist Intelligence Unit in cooperation with the Vietnam Chamber of Commerceand Industry (VCCI).
It was first published in 2016 and this yearmarks the second edition.-VNS/VNA
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