Vietnam ranked 7th among the top 10 destination economies for investors, according to a report issued by auditing firm PwC.
PwC’s study, “New Vision for Asia Pacific: Connectivity creating new platforms for growth,” surveyed more than 600 business leaders about prospects for business in the region. It was released Monday at a meeting of the Asia Pacific Economic Cooperation (APEC) in Beijing.
PwC Vietnam has been observing ongoing high levels of foreign direct investment (FDI) into the country with US$22.3 billion licensed in 2013 and $13.7 billion licensed in the first ten months of 2014.
Investment has primarily gone into the manufacturing sector since Vietnam continues to be viewed as a stable, low cost location with a plentiful supply of labor, said Stephen Gaskill, advisory partner at PwC Vietnam.
“FDI has primarily come from Asian countries such as Korea, Japan and Taiwan but we have observed increasing interest from Southeast Asian investors in the last 2 - 3 years. In addition, there has been an uptick in real estate investment after a long period of relative inactivity with a number of funds investing significant amounts into the country,” he said.
Up to 57 percent of respondents said they are either building or expanding facilities in APEC economies in the next 3 to 5 years.
Of those optimistic investors, 15 percent chose to spend their capital in Vietnam, making Vietnam the 6th among the top-10 private sector capital destinations in the Asia Pacific region.
Thirty-eight percent of respondents expect to increase staff by at least 5 percent a year over the next 3-5 years, according to the report.
The survey found that 67 percent of executives plan to increase investment in the APEC region over the next 12 months. Their plans are spread over each of the 21 APEC member economies, with China, the US, Indonesia, Hong Kong-China and Singapore the most popular destinations for investment.