PwC survey on Vietnamese CEOs confidencce (Photo: pwc.com)Hanoi (VNA) – Business leaders in Vietnam are among the mostoptimistic in Asia-Pacific.
They are more likely to increase investments over the next year compared toCEOs in other Asia-Pacific Economic Cooperation (APEC) economies, according tothe APEC CEO survey in Asia-Pacific in the 2016-17 period conducted by the firmPwC that focuses on audit and assurance, consulting and tax services.
Despute regional growth uncertainties, APEC CEOs continue to invest inbusinesses and in economies across the region to seed future growth. Amongthose with over-sight for markets in Vietnam, 76 percent expect to increaseinvestments over the next year, against 53 percent of CEOs who are likely toinvest across APEC.
This report reflects the perspective of 54 business leaders in Vietnam comparedto all 1,154 ones (APEC CEOs) surveyed from May to July 2016.
For seven years, as Knowledge Partner to the APEC CEO Summit, PwC has conductedthis survey to sharpen understanding of what’s driving business growth andinvestment in the region. Over half of all respondents are in organisationswith more than 1 billion USD in annual revenue.
Vietnam’s central position in evolving regional trade projects further addssupport to its growth prospects, according to the survey, adding that theTran-Pacific Partnership, for one, is widely expected to boost exports,although implementation seems less certain than it did a year ago.
CEOs in Vietnam are more likely to see significant progress toward the goal offree trade in Asia Pacific compared to CEOs in the US or Japan, and consider lower-costskilled labour a major force driving regional economic integration.
While economists expect GDP growth to moderate somewhat this year, Vietnamremains among the fastest growing in the region. The economy is drawing record foreign business investment. A market of over 90 million people, rapid middle-income growth andopenness to foreign ownership combine to boost its attractiveness. The CEOs are most confident in attaininghigher margins from domestic operations.
Some 33 percent of CEOs is more confident about launching a new product orservice or entering a new line of business, 41 percent of CEOs believe inincreasing profits margins in domestic operations, while 19 percent are less confidentabout increasing profits margins in international operations.
Johan Nyvene, CEO of Securities Corporation in HCM City, said Vietnam wouldbenefit from the growing integration of regional economies. The growth rate inother countries in the region had probably reached a plateau, which will requirethem to invest beyond their borders.
“Thus in many cases, Vietnam is not only a destination for investors fromdeveloped countries, but also for investors from Thailand or Indonesia,” Johansaid.
On average, APECT business leaders are investing in seven other APECTeconomies. This is the competitive arena that matters most, reflected in therise of global foreign direct investment in 2015. Business investment capitalis pushing across borders to accelerate growth and as a result, often bumpinginto fresh regulatory issues.
CEOs today say they balance policy and market factors in cross-border decisions.These perspectives suggest cross-border business investment will increasinglyflow to the right regulatory conditions for business expansions, according tothe survey.
The survey indicates that the Internet of Things (IoT) is opening up newbusiness models and forging new and closer relationships, with customers andsupply chain partners.
“Over the next three years, there will be more APEC companies deploying IoT technologythan those which aren’t. The twin aims to facilitate free trade of data – and keepingthat data secure – will likely persist as jurisdictions grapple with keepinglaws, and regulations on cross-border data transfers in step with, or ahead of,IoT advancements and wider adoption of the technology,” the report said.-VNA
They are more likely to increase investments over the next year compared toCEOs in other Asia-Pacific Economic Cooperation (APEC) economies, according tothe APEC CEO survey in Asia-Pacific in the 2016-17 period conducted by the firmPwC that focuses on audit and assurance, consulting and tax services.
Despute regional growth uncertainties, APEC CEOs continue to invest inbusinesses and in economies across the region to seed future growth. Amongthose with over-sight for markets in Vietnam, 76 percent expect to increaseinvestments over the next year, against 53 percent of CEOs who are likely toinvest across APEC.
This report reflects the perspective of 54 business leaders in Vietnam comparedto all 1,154 ones (APEC CEOs) surveyed from May to July 2016.
For seven years, as Knowledge Partner to the APEC CEO Summit, PwC has conductedthis survey to sharpen understanding of what’s driving business growth andinvestment in the region. Over half of all respondents are in organisationswith more than 1 billion USD in annual revenue.
Vietnam’s central position in evolving regional trade projects further addssupport to its growth prospects, according to the survey, adding that theTran-Pacific Partnership, for one, is widely expected to boost exports,although implementation seems less certain than it did a year ago.
CEOs in Vietnam are more likely to see significant progress toward the goal offree trade in Asia Pacific compared to CEOs in the US or Japan, and consider lower-costskilled labour a major force driving regional economic integration.
While economists expect GDP growth to moderate somewhat this year, Vietnamremains among the fastest growing in the region. The economy is drawing record foreign business investment. A market of over 90 million people, rapid middle-income growth andopenness to foreign ownership combine to boost its attractiveness. The CEOs are most confident in attaininghigher margins from domestic operations.
Some 33 percent of CEOs is more confident about launching a new product orservice or entering a new line of business, 41 percent of CEOs believe inincreasing profits margins in domestic operations, while 19 percent are less confidentabout increasing profits margins in international operations.
Johan Nyvene, CEO of Securities Corporation in HCM City, said Vietnam wouldbenefit from the growing integration of regional economies. The growth rate inother countries in the region had probably reached a plateau, which will requirethem to invest beyond their borders.
“Thus in many cases, Vietnam is not only a destination for investors fromdeveloped countries, but also for investors from Thailand or Indonesia,” Johansaid.
On average, APECT business leaders are investing in seven other APECTeconomies. This is the competitive arena that matters most, reflected in therise of global foreign direct investment in 2015. Business investment capitalis pushing across borders to accelerate growth and as a result, often bumpinginto fresh regulatory issues.
CEOs today say they balance policy and market factors in cross-border decisions.These perspectives suggest cross-border business investment will increasinglyflow to the right regulatory conditions for business expansions, according tothe survey.
The survey indicates that the Internet of Things (IoT) is opening up newbusiness models and forging new and closer relationships, with customers andsupply chain partners.
“Over the next three years, there will be more APEC companies deploying IoT technologythan those which aren’t. The twin aims to facilitate free trade of data – and keepingthat data secure – will likely persist as jurisdictions grapple with keepinglaws, and regulations on cross-border data transfers in step with, or ahead of,IoT advancements and wider adoption of the technology,” the report said.-VNA
VNA
