Saadia Zahidi, head of the WEF's Center for the New Economy and Society, noted that a major factor in the country’s jump is due to the economy’s ability to take advantage of the ongoing trade tensions between the United States and China. In addition, Vietnam has worked hard to attract investments and develop into more of a regional trading hub.
The WEF’s report states that the US is less competitive than in previous years, whilst the global economy is hampered by low productivity despite receiving cheap money for a decade from central banks.
In its most recent assessment of the factors behind productivity and long-term economic growth, the WEF said Singapore had overtaken the US to become the world’s most competitive country.
This can be attributed to the island nation’s state-of-the-art infrastructure and strong co-operation between labour and management.
The third, fourth, and fifth places went to Hong Kong, the Netherlands, and Switzerland, respectively.
The WEF's report maps out the competitive landscape of 141 economies worldwide.
They are based on more than 100 indicators across a dozen categories, including overall health, financial system, market size, business dynamism, and capacity to innovate.