Asian firms keen to expand in Vietnam
17:55, 2016/11/16
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).
Enterprises from Malaysia (38%), Thailand (35%) and Singapore (29 percent) ranked Vietnam as one of their top-three expansion destinations, according to the UOB Asian Enterprise Survey 2016.
The enterprises were among the 28% 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%), large and growing customer demand (40%) and favourable tax and regulatory environment (35%).
With an economic growth of 6.7% last year and 60% 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% 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.
“Investments in Vietnam will also create more jobs and boost income. This in turn will open doors for new economic opportunities as Vietnam’s growing urban population and expanding middle class start spending more on consumer goods, and on healthcare services to ensure their personal health and well being. In addition, Vietnamese enterprises will benefit from collaborating with foreign companies in the areas of knowledge sharing and skill transfer,” Tham said.
Last year a Memorandum of Understanding (MoU) was signed between the Foreign Investment Agency (FIA) and UOB aimed at increasing investment and trade between Vietnam and Southeast Asia.
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.
The enterprises were among the 28% 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%), large and growing customer demand (40%) and favourable tax and regulatory environment (35%).
With an economic growth of 6.7% last year and 60% 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% from the same period last year.
Illustrative image
|
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.
“Investments in Vietnam will also create more jobs and boost income. This in turn will open doors for new economic opportunities as Vietnam’s growing urban population and expanding middle class start spending more on consumer goods, and on healthcare services to ensure their personal health and well being. In addition, Vietnamese enterprises will benefit from collaborating with foreign companies in the areas of knowledge sharing and skill transfer,” Tham said.
Last year a Memorandum of Understanding (MoU) was signed between the Foreign Investment Agency (FIA) and UOB aimed at increasing investment and trade between Vietnam and Southeast Asia.
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.
12:17, 2025/02/25
Vietnam eyes top 3 in investment environment in ASEAN next 2 years: Party Chief
A key objective is to trim off at least 30% of administrative procedures and cut both business costs and unofficial fees.
18:03, 2025/02/22
Vietnam attracts South Korean tech investment at SEMICON Korea 2025
The event provided a platform for Vietnam to showcase its semiconductor potential and reaffirm its commitment to developing high-tech industries and strengthening international cooperation.
16:46, 2025/02/20
Swedish group plans US$1 billion investment in Binh Dinh recycling plant
By creating a large number of jobs and promoting a green economy, the initiative is important in establishing Vietnam as a global hub for the circular textile sector.
10:52, 2025/02/13
Samsung plans to invest in AI, semiconductors in Vietnam
Vietnam will continue improving its investment environment and driving strategic breakthroughs in order to usher in a new era of economic development.
17:20, 2025/02/07
Vietnam's data center construction costs among the lowest in Asia Pacific
The country has a lot of potential to become one of the most important data markets in the region.
21:05, 2025/02/03
Bright prospects for FDI inflows into Vietnam in 2025
Market size, growth potential, low labor costs, and stable political and social conditions continue to be Vietnam’s selling points in attracting foreign investors.
- Foreign companies confirm investment expansion in Vietnam in 2025
- PM invites Skoda to manufacture electric vehicles in Vietnam
- US Berggruen Holdings to help Vietnam set up investment funds
- Vietnam releases Esports White Book 2022-2023
- Aircraft manufacturer Embraer seeks comprehensive aviation partnership with Vietnam
- Better links with FDI firms to support Hanoi businesses