Vietnam ranks 7th among APEC economies for increased investment.
Confidence among CEOs in Asia Pacific continues to strengthen, according to a new report from PwC, with Vietnam ranked 7th, with 45 per cent of CEOs polled saying they plan to increase investment in the country. Forty-six per cent of executives in the region now say they are “very confident” about growth in the next 12 months, up ten points from 2012 and four points from last year, despite slowing growth in China - the economic engine of 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.
“PwC Vietnam has been observing ongoing high levels of foreign direct investment (FDI) into the country, with $22.3 billion registered in 2013 and $13.7 billion in the first ten months of 2014,” said Mr. Stephen Gaskill, Advisory Partner at PwC Vietnam. “Investment has primarily been in the manufacturing sector, since Vietnam continues to be viewed as a stable, low-cost location with a plentiful supply of labor. FDI has primarily been from Asian countries such as South Korea, Japan and Taiwan, but we have observed increasing interest from Southeast Asian investors over the last 2-3 years. There has also 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.”