Vietnam is the second most popular expansion destination in the Association of Southeast Asian Nations (ASEAN) for US businesses, according to new survey results released Thursday in Singapore by the U.S. Chamber of Commerce.
The 2015 ASEAN Business Outlook Survey polled 588 senior executives from US companies working in all 10 ASEAN countries.
Seventy-five percent of the respondents reported a rise in business in the bloc over the past two years; an overwhelming 89 percent expected it to increase over the next five years.
Indonesia was rated the top destination in ASEAN for US business expansion, followed by Vietnam, the survey found.
Vietnam’s strengths, according to those polled, include positive sentiments toward the US, the availability of low cost labor, good personal security and a stable government and political system.
Respondents, however, identified corruption as one of the biggest problems in Vietnam.
Over the past five years, cost pressures have eased, as levels of satisfaction with the availability of low-cost labor, housing costs, and office leasing costs in Vietnam have all increased significantly, according to the survey.
On the other hand, most respondents reported falling satisfaction with business incentives offered by the Vietnamese government and personal security, among other factors.
The companies surveyed reported turnovers ranging from below US$50 million to more than $1 billion.