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Wednesday, December 11th, 2019

Asian Firms Keen To Expand In Vietnam

by November 15, 2016 General

HO CHI MINH CITY, Nov 15 (Bernama) — Vietnam is likely to see increasing investment from Singapore, Malaysia, Thailand and other neigbouring countries in the next five years, according to a survey conducted by United Overseas Bank Limited (UOB).

Vietnam News Agency (VNA) reports that enterprises from Malaysia (38 per cent), Thailand (35 per cent) and Singapore (29 per cent) ranked Vietnam as one of their top-three expansion destinations, according to the UOB Asian Enterprise Survey 2016.

The enterprises were among the 28 per cent of all 2,500 surveyed respondents who chose Vietnam as their favoured expansion destination in the next three to five years.

Asian enterprises said they were drawn to Vietnam’s stable political and economic climate (41 per cent), large and growing customer demand (40 per cent) and favourable tax and regulatory environment (35 per cent).

With an economic growth of 6.7 per cent last year and 60 per cent of its 90 million people under 35 years old, Vietnam continues to be an attractive destination for investment.

In the first half of the year, the country received a record US$11.3 billion in foreign direct investment (FDI), a surge of 105 percent from the same period last year.

Eric Tham, head of Group Commercial Banking at UOB, said the findings from the survey reaffirmed the entrepreneurial spirit of Asian enterprises.

Speaking at an investment forum organised by UOB in Ho Chi Minh City last week, Tham said the top industry sources of foreign investment into Vietnam included key sectors, such as manufacturing, healthcare, pharmaceuticals, construction, real estate, and energy and natural resources sectors.

Growth in these key sectors is expected to build a strong foundation to support long-term economic growth.

Tham said while Vietnam’s economy could be affected by global market uncertainties stemming from a precipitous drop in oil prices and tepid consumer demand in the West, Vietnam’s rapid development presents many opportunities for Asian businesses.

With its head office in Singapore, UOB has a global network of more than 500 offices in 19 countries and territories in the Asia Pacific, Europe and North America.