Vietnam ranks 63rd globally in digital environment

The ADB index measures the quality of the environment for digital entrepreneurs by looking at the level of digitalization in eight areas: culture, institutions, market conditions, infrastructure, human capital, knowledge, finance, and networking.

Singapore has the world’s best digital environment and support system for entrepreneurs, according to the Global Index of Digital Entrepreneurship Systems, released on Sept. 21 as part of the Asian Development Outlook 2022 Update. The U.S. ranks second, Sweden third, Thailand 59th, Vietnam 63rd, Indonesia 71st, India 75th, and the Philippines, 79th.

Up to 17 of 21 developing Asian economies are ranked toward the bottom, underscoring the need for many to nurture digital entrepreneurship, the ADB said, noting that digitalization offers big growth opportunities for businesses in Asia and the Pacific.

Digitalization is a driver of innovation, which is key for economies striving to achieve high-income status. It can also make economies more resilient, with digital technology having helped many businesses survive the Covid-19 pandemic, and promoting inclusive growth by lowering the cost of starting a business, according to the bank.

“Digital entrepreneurship helped economies stay afloat during the Covid-19 pandemic, and it can become a major engine of growth and innovation in the post-pandemic world. For this to happen, there needs to be a supportive environment enabled by conducive policies and incentives,” said ADB Chief Economist Albert Park.

In addition to investing in digital infrastructure like broadband networks, governments need to promote political stability, reliable legal systems, open and competitive markets, and strong property rights. An ADB analysis shows that strong rule of law has a positive effect on enterprise innovation, while less corruption in a society correlates with an increase in the entry of new entrepreneurs to the market.

For Asia and the Pacific as a whole, an insufficiently supportive culture is among the biggest weak spots when it comes to nurturing digital entrepreneurship, according to the ADB. One example is a general lack of public appreciation for the vital role that entrepreneurs play in economic progress. One way to change this is to improve the public perception of entrepreneurship through education, said the bank.