ASEAN enterprises positive on Vietnam’s economy
Standard Chartered report notes that Vietnam has made rapid progress in becoming a dynamic, competitive country.
ASEAN enterprises have a positive view of Vietnam as the country is considered a frontier market in Southeast Asia, according to Standard Chartered’s “Winning in ASEAN” report.
The report showcases business sentiments and the opportunities and strategies that corporates can undertake to navigate global shifts and drive growth in the region. The findings underscore the impetus for greater effective public-private partnerships (PPPs) to accelerate recovery and resilience in ASEAN and beyond.
The report indicates that corporates are optimistic about their businesses in Vietnam, with 58 per cent having existing and future plans to expand sales in the country.
Vietnam has made significant progress in becoming a dynamic, cost-competitive nation. It has received greater attention as an alternative manufacturing hub as businesses increasingly adopt a “China plus one” diversification strategy.
Anchored on three strategic national plans - the New National Industrial Policy, the Digital Transformation Plan, and the National Strategy on Green Growth - Vietnam has a long-term plan to digitize production and supply chains. For instance, it is developing smart factories to improve efficiency and competitiveness as well as fostering priority industries and green growth.
Ms. Michele Wee, CEO of Standard Chartered Vietnam, said Vietnam’s medium to long-term prospects remain bright, supported by its favorable demographics, improving domestic fundamentals, and strong commitment to regional and global integration.
Vietnam has also emerged as an attractive investment location for foreign investors due to its competitive workforce and various cost-saving factors. The government has pushed for reforms in incentives to attract investors and to simultaneously improve the business environment
“As an increasingly important player in international trade and global supply chains, and with its role as an alternative manufacturing hub, Vietnam continues to present appealing opportunities for businesses looking to expand in the region,” Ms. Wee said.