For the first time, Vietnam’s economy broke into the moderately free category in the 2021 Index of Economic Freedom by the US-based Heritage Foundation, climbing 15 places compared to last year when it was classified in the group of having almost no economic freedom.

Vietnam is the 90th freest economy globally. Source: Heritage Foundation

With the economic freedom score of 61.7, representing an increase of 2.9 points against last year ranking, the country’s economy made it to the 90th freest, “primarily because of an improvement in fiscal health,” stated the Heritage Foundation’s report.

Meanwhile, Vietnam is ranked 17th in the region, while its score was higher than both regional and world averages at 60.2 and 61.6, respectively.

According to Heritage Foundation, Vietnam’s ranking could increase further if the government took additional action to liberalize investment rules and the financial sector.

Heritage’s 2021 Index looks at 184 sovereign nations from every corner of the globe and demonstrates that economic freedom can improve the quality of life regardless of cultural or geographic settings.

The results were based on 12 economic freedoms and grouped into four pillars, including Rule of Law (Property Rights, Judicial Effectiveness, Government Integrity), Government Size (Tax Burden, Government Spending, Fiscal Health), Regulatory Efficiency (Business Freedom, Labor Freedom, Monetary Freedom), and Open Markets (Trade Freedom, Investment Freedom, Financial Freedom).

Singapore claimed the top spot for two consecutive years with 89.7 points and also ranked 1st among 40 countries in the Asia-Pacific region. It also remained the only country in the world that is considered economically free in every Index category.

Other fours economies in the top five included New Zealand, Australia, Switzerland and Ireland.