The Asian nations that have improved the most in the Economist Intelligence Unit’s (EIU) rating of the best places to do business during the previous year are Thailand, Vietnam, and India.
Using a common analytical framework and 91 factors, the business environment report evaluates the appeal of the business climate in 82 nations on a quarterly basis.
According to the study, enterprises who pursue a China+1 policy—having supply chains in both China and another Asian market—benefit from Vietnam and Thailand’s favorable regulations for foreign investors.
The influence of China’s zero-COVID policy, which restricted commercial operations, led to the creation of the China+1 policy. According to the paper, it also enables companies to reduce the geopolitical risk brought on by the US-China relationship.
Vietnam’s score increases as a consequence of a better economic outlook, and Thailand’s score increases as a result of more stable economic conditions.
Thailand, along with Vietnam, Belgium, Sweden, India, and Costa Rica, is one of the nations that has made the largest strides in the past year.
In contrast, the research claimed that because of policy uncertainty and US-China conflict, the outlook for China’s business environment has gotten worse.
China dropped 11 spots in the second quarter’s rating from a year earlier, earning the title of “biggest loser” globally, according to the report. According to the EIU, “China now ranks below Malaysia, Thailand, Vietnam, and India.”
