Malaysian enterprises want to expand business in Vietnam: report
Sunday, 2017-04-02 07:39:53
NDO – As many as 38% of Malaysian companies are willing to choose Vietnam as their favourite destination in Asia to expand their business over the next three to five years, a report recently-released by the United Overseas Bank (UOB) has quoted.
According to UOB’s 2016 Asian enterprise survey, Malaysian entrepreneurs highly valued the conditions in Vietnam, such as stable politics (44%), large and growing demand of customers (42%), and favourable tax environment and regulations (32%).
The economic growth rate of 6% in 2016 and the young labour force making up 60% of the 90 million population under the age of 35 make Vietnam an attractive investment destination, it stated.
UOB’s survey was based on 2,500 interviews with key Asian financial planners from Malaysia and aimed to find out how they do business amidst global and regional economic trends and trade flows. Malaysian businesses surveyed must have had at least three years of operation with an annual turnover of at least 15 million ringgit (US$3.5 billion).
Wong Kim Choong, CEO of UOB Malaysia, said the results of the survey reaffirmed Malaysian companies' desire to continue to seek profit and business opportunities by expanding their business to foreign markets.
According to Wong, Malaysian investors in Vietnam mainly invest in export industries such as manufacturing, healthcare, pharmaceuticals, construction and real estate due to favourable business conditions and a rising middle class with increasing purchasing power.
Malaysian businesses are also attracted by opportunities which will open up further through free trade agreements Vietnam has reached with the European Union and the Eurasian Economic Union.
UOB opened its first branch in Vietnam serving mainly businesses in 1995.