Vietnam still attractive destination for international firms: HSBC

The survey notes that Vietnam’s skilled workforce was identified by 27% of respondents as one of the most attractive attributes for foreign businesses, pointing to the country’s appeal as a manufacturing base.

The same percentage is also attracted by the country’s growing consumer market, thereby highlighting the appeal of increasing consumer prosperity.

The country's growing digital economy was also a key selling point for international business expansion at 23%. Many respondents said they were attracted by the country’s high smartphone penetration rate and vibrant start-up sector.

"Vietnam which has become known for its rapid economic growth also stands out as one of the top performers in the ASEAN region given its strong economic resilience during and after the COVID-19 pandemic. This resilience coupled with its hard working skilled work force and competitive cost structures continues to attract strong FDI flows into the country,” said Tim Evans, CEO of HSBC Vietnam.

Most notably, the country's fast growing middle class is also a prime opportunity for international companies seeking to tap into the consumer market that is expected to become the 10th largest in the world by 2030.

“Despite some short-term headwinds, Vietnam remains an attractive destination for foreign businesses and we continue to see very strong interest in the Vietnam story from customers throughout the HSBC network," he noted.

New research commissioned by HSBC also shows that international businesses from nine major economies are increasingly optimistic regarding their growth prospects in Southeast Asia.

They anticipate sales in the region will grow by 23.2% over the next 12 months compared to the figure of 20.1% seen during last year’s survey, with this being four to five times the rate of GDP growth expected in Southeast Asia. This therefore highlights growing confidence in the region on the part of international companies.