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Vietnam gains four places on Economic Freedom index but overall score falls

Vietnam has moved up four places on the Fraser Institute’s Economic Freedom of the World: 2024 Annual Report, ranked 99th alongside Namibia and Djibouti (Of note, this is based on 2022 data). Its overall score however recorded a slight fall from 6.24 to 6.23. 

The country saw progress in monetary stability, with its “Sound Money” ranking improving from 116th to 105th, and also made strides in regulatory policies, moving from 103rd to 99th in the “Regulation” category.

However, Vietnam experienced setbacks in the “Size of Government,” where its ranking dropped significantly from 87th to 106th, indicating increased government intervention. The “Freedom to Trade Internationally” category also declined, with the ranking falling from 101st to 113th. Meanwhile, the ranking for “Legal System & Property Rights” remained relatively stable, improving slightly from 77th to 78th, reflecting gradual progress in legal rights protection.

Breakdown of key criteria

Size of Government: This area evaluates how much government fiscal policies, such as spending, taxation, and state ownership, limit individual economic choices, with lower government involvement earning higher ratings.

Legal System and Property Rights: It measures how well a country’s legal system protects individuals and their property, with a focus on judicial independence, property rights, contract enforcement, and protection from crime, adjusted for gender disparities in legal rights.

Sound Money: This area assesses the stability of a country’s currency, focusing on inflation control and allowing access to alternative currencies, as currency stability is crucial for individuals’ economic decision-making.

Freedom to Trade Internationally: It measures restrictions on international trade, such as tariffs and exchange controls, with high ratings given to countries that allow free movement of goods, capital, and human resources.

Regulation: This area evaluates the extent to which regulatory policies, such as credit, labour, and business regulations, limit market entry and the freedom to exchange goods and services.

Vietnam Economic Freedom index ranking over time

Year2022202120202019201820172016201520142013
Overall Score6.236.246.166.176.125.935.865.785.665.60
Rank99103110123118130129131135137
Size of Government106878298107134129120125135
Legal System & Property Rights78778288888386858586
Sound Money105116133136137143150151152156
Freedom to trade internationally113101104116117115112122118102
Regulation99103106105103108108111117117

Source: Fraser Institute

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