The outlook for China’s business environment has deteriorated as a result of greater policy uncertainty, US-China tensions and a more challenging longer-term outlook for growth. Photo Credit: Adobe Stock/powerstock
Singapore is the most attractive destination in which to do business,
a position it has retained for 15 years, while Vietnam is the country
that has made the most significant improvement in its business
environment.
This is according to the EIU’s latest business environment rankings
(BER), a quarterly assessment of the best countries for doing business
based on the attractiveness of the business environment in 82 countries,
using a standard analytical framework with 91 indicators.
After Singapore, Canada and Denmark ranked as the second and third
countries with the best business environment over the next five years.
Hong Kong and New Zealand are two further APAC destinations to also make
the top 10, while Australia, Taiwan and South Korea also rank in the
global top 20.
The EIU’s ranking shows that North America and western Europe
continue to be the best places in the world to do business. Ten of the
top 20 countries in the global ranking are in western Europe reflecting
the region’s political stability, large and competitive domestic
markets, and openness to world trade. Asia ranks third, ahead of eastern
Europe, while Latin America marginally outperforms the Middle East and
Africa (MEA). The report said that as a region, Asia’s score for policy
towards foreign trade is improving.
Vietnam is the overall biggest mover worldwide, climbing 12 spots in
the rankings, while Thailand improves by 10 places and India by six.
The biggest deteriorations are in China, Bahrain, Chile, and
Slovakia, with the report saying that the outlook for China’s business
environment has deteriorated as a result of greater policy uncertainty,
US-China tensions and a more challenging longer-term outlook for growth.
China was the biggest loser globally, falling by 11 spots in the
second-quarter rankings compared with a year earlier, and the rankings
show that it is also behind markets such as Malaysia, Thailand, Vietnam,
Mexico and India that are seeking to attract manufacturing investment
away from China.