Vietnam tops US investment choices in SEA

September 13, 2014 | 09:03

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Vietnam is expected to be the top choice for American companies shifting investments from China to Southeast Asia, according to a recent survey by the American Chamber of Commerce in Singapore (AmCham Singapore).

AmCham Singapore just released their survey of business prospects in ASEAN for 2015, based on opinions of nearly 600 leading investors of the US doing business in ASEAN countries.

The survey showed that as many as 37% of companies who responded said they had plans for future business expansion in Vietnam, only after Indonesia with 41%. Coming at the third is Myanmar with 35%.

Among the respondents, 75% said that they would choose Vietnam for investment expansion, and 22% wanted to keep up the current scale. Particularly, Vietnam is at the top of the list of choice for American companies for shifting their investment to ASEAN nations.

Of those asked, 79% of companies said that the Trans-Pacific Partnership (TPP) agreement with the participation of 12 countries, including Vietnam and the US, would have positive impact on American trade and investment activities in Vietnam.

More than half, 57%, said that Vietnam expects their workforce to increase this year, while 66% expected increases in profits this year. Expectations for next year are even higher, at 82%.

The respondents pointed out some particular advantages of investing in the country, including cheap labour, tight security and political stability. Still, some had worries about issues such as corruption, lack of infrastructure. The anti-China protests caused particular worry.

According to the Ministry of Planning and Investment, the US ranks 7th among territories and countries investing in Vietnam, with a total investment capital of USD2.55 billion.

Dtinews

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