Malaysian firms keen on business expansion in Vietnam

Illustrative image (Source: VNA)

Kuala Lumpur (VNA) – Upto 38 percent of Malaysian firms chose Vietnam as their favoured Asiandestination for business expansion in the next 3-5 years, according to the 2016Asian Enterprise Survey released by the United Overseas Bank (UOB) on March 31.

The firms said they were drawn toVietnam’s stable political climate (44 percent), huge and growing customerdemand (42 percent), and favourable tax and regulatory environment (32 percent).

Vietnam continues to beattractive for foreign investment thanks to its 6 percent growth and a youngworkforce base with 60 percent of its 90 million population aging below 35.

The findings were taken from morethan 2,500 interviews granted to financial planners working for Malaysia-based Asianenterprises which have been in operation for at least three years and earn atleast 3.5 million USD each year.

UOB Malaysia Chief ExecutiveOfficer Wong Kim Choong said Malaysian investors in Vietnam mostly operate inexport-oriented industries such as manufacturing, health care, pharmaceuticals,construction and real estate, adding that they also look forward to moreopportunities brought about by Vietnam’s free trade agreements with theEuropean Union and the Eurasian Economic Union.

UOB has noticed Vietnam’sstrategic importance since 1995 when the bank opened a branch mostly servingforeign businesses in the country, he said.-VNA

VNA