Vietnam has emerged as a magnet for foreign investment. Photo: Internet
Vietnam has been voted as the third most attractive destination in Asia for Asian companies to expand operations in the coming three to five years, only after Singapore and Japan, according to a recent survey conducted by Singapore-based United Overseas Bank (UOB).
As many as 28% of respondents said they would invest more in Vietnam, below 32% who considered Singapore and 29% who voted for Japan. Meanwhile, just 22% of surveyed enterprises chose China.
In Southeast Asia, after Singapore, Vietnam is the most popular expansion destination thanks to the country’s stable political environment, favorable economic conditions of low inflation and accommodative monetary policy.
Vietnam’s young and active workforce has added to its attractiveness as an expansion destination, the survey showed.
Malaysian, Thai and Singapore enterprises are the keenest on Vietnam, with 38%, 35% and 29% of them respectively planning to expand operations in the latter within three to five years’ time.
The 2016 survey indicated that fewer firms are operating in Vietnam than originally anticipated in 2014, when the Asian Enterprise Reports was first released. Meanwhile, in Malaysia and Singapore, the number of running enterprises has gone beyond the expectations.
A total of 2,500 business leaders of Asian enterprises in six regional countries and territories – China, Hong Kong, Indonesia, Malaysia, Singapore and Thailand – participated in the research.