Analysis of Taxation Impacting on the National Competitiveness: The Cases of Vietnam and ASEAN countries

Abstract

The research systemizes the main results of articles and papers on the factors that affect the national competitiveness. It also analyzed the impact of taxation on the national competitiveness of Vietnam and ASEAN countries. The paper used the data of the Global Competitiveness Reports and Doing Business reports and paying taxes in the period 2010-2017. By performing the multiple linear regression, the results show twelve statistically significant factors that positively affect the national competitiveness, including institutions, macroeconomic environment, infrastructure, health and primary education, goods market efficiency, higher education and training, labor market efficiency, financial market development, technological readiness, market size, business sophistication, and innovation. The research also analyzes the taxation directly impacting on three pillars comprising of institutions and macroeconomic environment, and goods market efficiency of the national competitiveness and testing the different impact of taxation on the national competitiveness between Vietnam and ASEAN countries. This paper suggests possible solutions for improving the taxation in order to enhance the national competitiveness of Vietnam.