Vietnam attracts Indian and Chinese businesses

HSBC’s survey result shows that about a quarter of Indian and Chinese enterprises that are operating or plan to operate in Vietnam want to expand their business here.

The "HSBC Navigator: Southeast Asia Spotlight" has just released that 21% of Indian companies that are setting up or plan to set up their operations in Southeast Asia plan to expand their business in Vietnam in the next two years. At the same time, 26% of Chinese enterprises in Vietnam also aim at the priority for their growth here.

This survey was implemented on more than 1,500 companies from the global six biggest economies including China, France, Germany, India, the UK and the US. All are operating or plan to operate in Southeast Asia in the coming time.

In terms of Vietnam's advantages, the questions that whether the skilled workforce is the most attractive one are made to 3 out of 10 companies. While 27% is attracted by the optimistic economic outlook, competitive labor costs and pandemic resilience.

39% of Indian companies choose Vietnam thanks to their developed infrastructure and 49% prefer the government supports and regulatory environment here. Meanwhile 36% of the US companies said this market attracts them because they have many opportunities to test and develop the new products or solutions. In addition, 49% - mainly Chinese, Indian and the US enterprises - want to take the advantage of EU-Vietnam Trade Agreement (EVFTA).

"As the solid fundamentals and position is one of the most attractive investment destinations for the international investors, Vietnam is rising to become the global manufacturing hub," judged Tim Evans, General Director of HSBC Vietnam. 

After the discussions with customers, he also said that more and more global enterprises want to invest to Vietnam "it is not temporary, but strategic and permanent".

On the other hand, 33% of surveyed companies find that they are facing the supply challenges due to the impact of the pandemic when business is operating in Vietnam. The cultural matters, including language and business restrictions, also make the enterprises concerned, 31% of the surveyed companies say that this is a particular challenge for them in Vietnam.

Sustainable development in Vietnam - one of the topics is mostly globally paid attention today - carefully considered by the international investors operating here.

Vietnam is a leading country in the region on the progress of achieving the United Nations' 17 Sustainable Development Goals (SDGs). Being ranked at the 51st out of 162 countries in the SDG index, Vietnam is valuated to be more successful than other Southeast Asian countries (except Thailand).

45% of companies operating in Vietnam in the survey say that the most important sustainability activities they can undertake is to improve energy efficiency. However, about 31% of the companies worry that new regulations and rules on carbon reduction may affect them.

In order to achieve their goals, 3 out of 10 companies are inquired that if they find to improve their employees' knowledge of sustainability. 36% of the companies say that it is difficult to recruit workers with the proper skills for sustainability.

Source : VietNam.Net