2012 Index of Economic Freedom HERITAGE.ORG/INDEX

Vietnam’s Performance

in the 2012 Index

James M. Roberts Research Fellow

The Heritage Foundation

Ho Chi Minh City, Vietnam

September 20-21, 2012

2012 Index of Economic Freedom HERITAGE.ORG/INDEX

“Fundamentally, there are only two ways of coordinating

the economic activities of millions. One is central direction

involving the use of coercion—the technique of…the modern

totalitarian state. The other is voluntary cooperation of

individuals—the technique of the marketplace.”

--Milton Friedman, Capitalism and Freedom

2012 Index of Economic Freedom HERITAGE.ORG/INDEX

Ten Economic Freedoms: World Averages

Rule of Law

Limited

Government

Regulatory

Efficiency

Open Markets

2012 Index of Economic Freedom HERITAGE.ORG/INDEX

Global Average Economic Freedom

57.6

57.1

57.3 57.2

57.5

58.1

59.2 59.2

59.6 59.6 59.6

59.9

60.1 60.2

59.5

59.4

59.7 59.5

1995 Index

2012 Index

2012 Index of Economic Freedom HERITAGE.ORG/INDEX

Growing Attention to Public Debt Burden

Quick Facts – Greece

2012 Index of Economic Freedom HERITAGE.ORG/INDEX

2012 Index of Economic Freedom HERITAGE.ORG/INDEX

Which Countries Enjoy the Most Economic Freedom?

2012 Index

1. Hong Kong

2. Singapore

3. Australia

4. New Zealand

5. Switzerland

6. Canada

7. Chile

8. Mauritius

9. Ireland

10. United States

2011 Index

1. Hong Kong

2. Singapore

3. Australia

4. New Zealand

5. Switzerland

6. Canada

7. Ireland

8. Denmark

9. United States

10. Bahrain

Least Free: North Korea, Zimbabwe, Cuba, Libya

2012 Index of Economic Freedom HERITAGE.ORG/INDEX

2012 Index of Economic Freedom HERITAGE.ORG/INDEX

One-Year Freedom Score Change

2012 Index of Economic Freedom HERITAGE.ORG/INDEX

2012 Index of Economic Freedom HERITAGE.ORG/INDEX

Economic Freedom is Key to Prosperity

Correlation: 0.65 R² = 0.42

$100

$1,000

$10,000

$100,000

20 30 40 50 60 70 80 90 100

Economic Freedom

Hong Kong

2012 Index of Economic Freedom HERITAGE.ORG/INDEX

2012 Index of Economic Freedom HERITAGE.ORG/INDEX

Economic Freedom Promotes Growth and Reduces Poverty

2012 Index of Economic Freedom HERITAGE.ORG/INDEX

Economic Freedom Increases Entrepreneurship and Job Opportunities

Correlation: 0.76 R² = 0.58

1

21

41

61

81

101

121

1 21 41 61 81 101 121 141 161

Rank in Legatum’s Entrepreneurship and Opportunity Sub-Index

2012 Index of Economic Freedom Rank

Hong Kong

2012 Index of Economic Freedom HERITAGE.ORG/INDEX

Economic Freedom Promotes a Clean Environment

74.4

69.3

62.0

53.0 51.5

Free Mostly Free Moderately Free Mostly Unfree Repressed

Economic Freedom

Correlation: 0.47

Average Score of the Environmental Performance Index

2012 Index of Economic Freedom HERITAGE.ORG/INDEX

2012 Index of Economic Freedom HERITAGE.ORG/INDEX

Economic Freedom Over the Last Ten Years

35.0

40.0

45.0

50.0

55.0

60.0

65.0

70.0

75.0

Sc

ore

Year

2003-2012 Index of Economic Freedom Scores

Philippines, The Thailand

Laos

Vietnam

Cambodia

Indonesia

Myanmar

Malaysia

2012 Index of Economic Freedom HERITAGE.ORG/INDEX

Economic Freedom in Vietnam

2012 Index of Economic Freedom HERITAGE.ORG/INDEX

2012 Index of Economic Freedom HERITAGE.ORG/INDEX

For More Information Visit

www.heritage.org/Index

Thank You!