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In a recent study conducted by the Economist Intelligence Unit (EIU), Vietnam, Serbia, and Romania have been highlighted as the countries that have seen the most significant improvement in their business environments over the past two decades. The findings are based on the EIU’s comprehensive long-term analysis, which has tracked progress across multiple regions worldwide.
Significant Progress in Eastern Europe and MENA Region
The EIU report reveals that several countries in Eastern Europe, including Serbia, Romania, and Croatia, as well as nations in the Middle East and North Africa (MENA) such as Morocco, Saudi Arabia, and Israel, have made considerable strides in enhancing their business environments between 2003 and 2023. This period has seen these countries take substantial steps toward improving conditions for businesses, driven by political, economic, and infrastructural reforms.
Among the leading countries in this transformation, Vietnam ranks first, having achieved the most substantial improvement according to the EIU Business Environment Rankings. These rankings, which have been published since 1995, evaluate the business environments of over 80 countries that together account for more than 90% of global GDP. Serbia has been identified as the second-most improved nation in this index, reflecting the country’s remarkable progress in reshaping its business landscape.
Serbia’s Journey: From Post-Conflict Economy to Business Reformer
Serbia’s improvement has been particularly striking, as noted by the EIU analysts. Starting from a relatively low base, Serbia’s business environment had been severely affected by the country’s post-war recovery and the economic sanctions it faced during the 1990s. Analysts highlight that Serbia was one of the most economically damaged countries to emerge from the dissolution of the former Yugoslavia.
“The most notable progress in Serbia occurred in the early 2000s, following the overthrow of Slobodan Milošević’s regime, the end of international isolation, and the lifting of economic sanctions,” the EIU report states. As a candidate for European Union membership, Serbia has benefited from increased trade with EU member states and has received substantial financial assistance from the bloc. Additionally, favorable loans and infrastructure support from China have played a key role in enhancing Serbia’s economic development—a trend expected to continue through the 2024–2028 period.
Key Areas of Improvement for Serbia
According to the detailed criteria used in the EIU study, Serbia ranks second among the ten most successful countries in terms of transforming its business environment. This is largely due to significant progress in areas such as foreign trade, financial sector reforms, infrastructure quality, and macroeconomic stability.
However, there are areas where Serbia still faces challenges. The country lags behind in labor legislation, employment practices, and overall conditions in the domestic market. Furthermore, Serbia scores lower on the newer criteria of “preparedness for technological changes and challenges,” which was incorporated into the EIU business environment reports in 2016.
Future Outlook: Maintaining Momentum
EIU analysts predict that Vietnam, Serbia, and Romania will continue to lead the rankings for countries that have improved their business environments, with sustained momentum through 2028. These countries are expected to remain at the forefront of business reforms, driven by ongoing investments and international partnerships.
Nonetheless, new contenders are emerging. “Several other countries are poised to enter the top 10 over a 25-year period from 2003 to 2028,” according to the EIU experts. India, Kenya, and Greece are among the nations expected to join the ranks of the most successful business environment reformers by 2028, adding further competition to the list.
