Vietnam among top places for business expansion in Southeast Asia: survey
In the Southeast Asia region, Singapore tops the list of most favorable expansion destinations for Asian companies, with 32% of respondents saying they will invest more, followed by Vietnam, according to a recent survey by United Overseas Bank.
Vietnam’s young and active workforce adds value to its attractiveness as an expansion destination. When it comes to labor cost, no country in the region except Myanmar can beat Vietnam.
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| Laborers work at TAL Apparel Vietnam Garments factory in Vinh Phuc Province, north of Hanoi, Vietnam October 20, 2016. Photo by Reuters/Kham |
Vietnam has become a magnet for investment even for investors from Southeast Asia. Malaysian, Thai and Singaporean companies are the keenest on Vietnam, with 38%, 35% and 29% respectively planning to pour more money in the next three to five years.
In the first nine months, the country has attracted US$16.43 billion foreign investment, latest data from the government shows.
However, according to the survey, fewer firms are operating in Vietnam than originally anticipated in 2014. Meanwhile, in Malaysia and Singapore the number of running enterprises has exceeded the expectations.
There remain some obstacles affecting businesses in Vietnam such as corruption, red tape and the lack of a long-term strategy.
Asia’s rising importance continues unabated in the global economy. The region’s share of global economy has jumped from 18% in 1980 to 31% in 2015, and is forecast to reach 45% by 2030.
A total of 2,500 business leaders and key financial decision makers of Asian enterprises based in six regional countries and territories -- China, Hong Kong, Indonesia, Malaysia, Singapore and Thailand -- participated in the survey.
