PwC releases new study on investment perspective in Asia Pacific

Accordingly, forty-six percent of executives in the region now say they are “very confident” of growth in the next 12 months, up 10 points from 2012 and four points from last year, despite slowing growth in China, the economic engine for the region.

The survey found that 67 per cent of executives plan to increase investment in the APEC region over the next 12 months.

Their plans are spread over each of the 21 APEC member economies, with China, the US, Indonesia, Hong Kong-China and Singapore the most popular destinations for investment. Vietnam ranked seventh among top 10 economies, with 45 per cent of CEO polled said they plan to increase investment in Vietnam.

"PwC Vietnam has been observing ongoing high levels of foreign direct investment into the country with $22.3 billion licensed in 2013 and $13.7 billion licensed in the first ten months of 2014. Investment has primarily been into the manufacturing sector since Vietnam continues to be viewed as a stable, low cost location with a plentiful supply of labour,” said Stephen Gaskill, advisory partner at PwC Vietnam.

According to Gaskill, foreign direct investment has primarily been from Asian countries such as Korea, Japan and Taiwan.

“In addition, there has been an uptick in real estate investment after a long period of relative inactivity with a number of funds investing significant amounts into the country,” he added.

In the PwC study, 57 per cent of respondents say they are either building or expanding facilities in APEC economies in the next three to five years, in which 15 per cent chose to spend their capital in Vietnam, helped to rank Vietnam the sixth among top 10 of private sector capital destinations in the Asia Pacific region.

Besides, 38 per cent of respondents expect headcount in their organisations globally to expand by at least 5 per cent a year over the next five years.

Supporting this confidence is a vision of an Asia Pacific region that is more connected, both physically and virtually, and an outlook for more balanced regional growth.

For example, nearly 60 per cent of executives say they are now more willing to share insights and resources with business partners in order to speed product development and gain market access. And more than 40 per cent say their company will likely enter a business combination outside of their core industry.

“Asia Pacific today stands at a turning point as advancing technologies move beyond national boundaries and create new demands and even new industries,” said

Dennis M. Nally, chairman of PricewaterhouseCoopers International Ltd.

“CEOs see the need to be bold in breaking down the barriers to growth. They want to finalise the Trans-Pacific Partnership, address intellectual property issues and encourage regulatory harmony in the region,” he noted.

The survey also found that data-driven changes are having an impact in the region as 57 per cent of executives say they are more confident of their ability to respond to changes in the marketplace, and half say they are more skilful at forecasting demand.

“Businesses are investing in a different Asia Pacific with rising numbers of urban middle-income consumers demanding new, technologically advanced products and services from business and governments. In its 25^th year, APEC has an ongoing and important role to play in helping to meet these demands and advancing growth throughout the region,” said Nally.

Carried out by PwC International Survey Unit, the APEC CEO Survey 2014 was conducted between June and August 2014 covering 635 CEOs and industry leaders across 39 nations with operations in APEC economies.