With an overall score of 58.3 points, Vietnam ranked 13th out of 29 economies in the Asia-Pacific region, according to the Prosperity Index 2020 published Monday by London-based think tank Legatum Institute.

The index ranked countries and territories based on various socio-economic categories including safety and security, governance, investment environment, economic quality, living conditions, health, education and natural environment.

In Asia-Pacific, Vietnam stood above the Philippines (83), India (101), Laos (115), Cambodia (118), and Myanmar (127). It lagged behind Singapore (15), Japan (19), South Korea (28), Malaysia (40), Indonesia (57) and Thailand (64).

Vietnam performs most strongly in social capital (13) and health (49).

The country also did well in terms of economic quality (56), along with market access and infrastructure (60).

Living conditions in Vietnam have improved the most over the past decade, increasing by 18 places, according to the report. In recent years, thanks to affordable housing and low cost of living, Vietnam has become a top expat destination.

Around 90,000 foreigners lived and worked in Vietnam, mainly in Hanoi and HCMC, as of last year, according to official data.

"For example, the percentage of the population that live on less than $3.20 a day has fallen from almost 50 percent a decade ago to less than 10 percent now, and the percentage that survive on less than $5.50 has reduced from nearly 80 percent of the population to less than 25 percent," it revealed.

Denmark proved the most prosperous country in the world, followed by Norway and Switzerland.

The U.S. and China, the world's two most powerful economies, ranked 17th and 54th.