KPMG survey optimistic about emerging market expansion, including Vietnam

17:28 | 17/09/2014
Vietnam was ranked in the top four high growth markets globally for intended investment by US multinational companies in the next 12 months, according to KPMG’s latest survey of US business executives.

“It is exciting to see our US clients expressing such confidence in Vietnam,” said KPMG in Vietnam’s chairman and CEO, Warrick Cleine.

“Quality investment – in services, manufacturing and infrastructure – is key to Vietnam’s future prosperity, and US investors have a great track record in these areas,” he shared.

A recent survey by KPMG LLP, the US audit, tax and advisory firm, reveals that ninety per cent of US business executives involved with business development and corporate strategy have seen revenues from high growth and emerging markets (HGEM) increase in the past year and expect them to continue increasing in the coming months.

“High growth and emerging markets have moved to the top of the corporate agenda, and companies are investing beyond the BRIC countries,” said Mark Barnes, national leader of KPMG’s U.S. High Growth Markets practice.

“Significantly, there is an increasing appetite for investment in emerging countries such as Vietnam, Chile, Argentina, Malaysia, Indonesia and South Africa.  And all for good reason: markets like Vietnam, Nigeria, and India are projected to be the highest growth markets at 6 per cent to 7 per cent in the years and decades ahead,” he noted.

Other finding is that an overwhelming majority of executives (84 per cent) say that HGEM countries are important to their company’s strategy and growth – a significant increase of 37 percentage points from last year’s KPMG survey.

More companies (29 per cent) expect a higher share of their global revenues ($31 million to $50 million) to come from these countries – an increase of 17 percentage points over prior year survey results.

 “On average, executives this year expect that nearly one quarter of their global revenues will come from HGEM countries,” said Barnes. “This number has increased from last year and may indicate an opportunity gap throughout the world as emerging countries contribute 50 per cent of the global GDP.”

The survey also shows that outside the traditional BRIC countries (including Brazil, Russia, India and China), Chile, Philippines, Argentina, Indonesia and Vietnam have seen increased executive perception over the past year.  The number of companies planning to invest at least $5 million in Vietnam in the coming 12 months increased from 7 per cent to 9 per cent.  

KPMG in Vietnam’s chairman and CEO Warrick Cleine further stated, “The KPMG survey results really confirm what we are seeing on the ground and what I’m hearing from our clients, and that is a restoration of investor confidence again, which is a fantastic sign long-term for HGEM countries, but particularly right here in Vietnam”.

The KPMG survey was conducted in the spring of 2014 and reflects the responses of 100 US business executives involved with business development and corporate strategy. 

Based on revenue in the most recent fiscal year, nine per cent of survey respondents work for companies with annual revenues exceeding $10 billion, 48 per cent with annual revenues in the $1 billion to $10 billion range, and 43 per cent with revenues in the $100 million to $1 billion range.

By By Mai Thuy

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