Why is Vietnam attractive to Asian investors?

The results from the Asia Overseas Enterprise Survey of United Overseas Bank (UOB) recently reaffirmed that Vietnam is among the top locations for foreign investors (FDI) to expand their business. in Southeast Asia. But to choose "clean" FDI, which is beneficial to the economy, Vietnam will not attract investment at all costs.

According to the Foreign Investment Department (Ministry of Planning and Investment), in the first 10 months of 2016, FDI sector has invested in 19 sectors, of which the processing and manufacturing sector is an attractive field. Much attention of FDI enterprises (DN) with 842 newly registered investment projects and 691 times of adjusted capital projects, the total newly and additionally capitalized is 12,84 billion USD, accounting for 72,9% total investment registered for 10 months.

Why is Vietnam attractive to Asian investors?

 

Ideal destination

The field of real estate business is second with 46 of new projects, total new and additional registered capital is USD 200 million, accounting for 982,59% of total registered investment capital. The field of professional activities, science and technology ranks third with 5,5 million USD, accounting for 657,66% of total investment capital.

In the Asia Enterprise Report, UOB said that in 2016 Asian enterprises surveyed, more than a quarter chose Vietnam (2.500%) as an ideal business expansion point in next year 's 28-3 in the East region. South Asia, just behind Singapore (5%).

In particular, enterprises from Malaysia, Thailand and Singapore are particularly interested in the Vietnamese market, with the rates respectively being 38%, 35% and 29%. Enterprises in these three countries are interested in investing mainly in manufacturing sectors; medical - pharmaceutical products; energy - natural resources; construction - real estate ...

Also according to UOB, the main factors affecting the selection of business expansion locations of Asian businesses in Vietnam are the political and economic environment, stable demand and increasing number of guests. line. Moreover, preferential tax rates and favorable legal environment, close connection of local businesses, incentives from the Government.

Looking at the results of this survey, experts believe that in the next year, the energy - natural resources industry, the construction - real estate industry will be the most benefited sectors from FDI, when Vietnam upgraded its infrastructure to promote economic and social development. In it, the most important is to invest in developing energy infrastructure to meet the needs of the country.

Evidence is in April, April / April, UOB Venture Management Pte Ltd (UOBVM), UOB's investment fund and Japan ORIX Group (ORIX), announced the investment of USD 200 million into one of private companies. Largest hydroelectric power plant in Vietnam, Bitexco Power Joint Stock Company (Bitexco Power).

This investment is related to the forecast of the General Statistics Office on the demand for electricity consumption throughout the country will continue to rise at a rate of between 10-12% annually, from the central rate of 169,8 in the year up to XNXX of the middle. run time in year XNX.

The manufacturing sector also contributes to the development of the national economy as Vietnam transforms itself into a major Asian production center. With 54%, Asian companies believe that rising costs are one of the biggest challenges, many companies in the region are looking to Vietnam due to lower operating costs and labor costs.

The leading Asian electronics groups such as LG and Panasonic have also expanded their production base in Vietnam. Population characteristics also help Vietnam become an ideal destination for business expansion.

 

Avoid environmental exchange

According to UOB, with a young population, an increase in the middle class, an urbanization process and an increasing level of spending, Vietnam has become attractive to Asian businesses looking for new markets for their products. products and services.

There are 39% representatives of enterprises surveyed by UOB saying that they are learning to expand the international market to increase revenue. These companies also include a working group in the medical and pharmaceutical sectors, with the goal of meeting the increasing needs and spending levels of Vietnamese people for health care.

According to Eric Tham, UOB's Head of Commercial Banking, Asian businesses know how to seize opportunities to provide products and services, meeting the increasing needs of Vietnam's middle class. especially to build strong businesses in the region.

In order to understand more about the investment environment in Vietnam as well as the concerns of investors in the region, the upcoming April / April / April period in Hanoi will take place the Bloomberg Summit 2012 with the participation of key leaders of leading regional and global corporations, senior executive leaders of international financial services companies as well as government leaders.

This conference is being expected by Asian investors to be able to capture the next stage of development of Vietnam and the ASEAN Economic Community (AEC), especially in cross-border trade and investment in the region. .

Growth sectors such as consumer goods, infrastructure, goods and energy, banking and finance are thought to be a major concern for investors at this summit.

Talking to foreign investors, Deputy Prime Minister and Foreign Minister Pham Binh Minh affirmed that Vietnam will continue to focus more on investment but towards environmental sustainability; attract investment in areas with advantages, high technology, efficient use of resources. Vietnam will provide conditions to ensure both attracting investment and protecting the environment.

 

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