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|Vietnam among APEC’s best in foreign investment, source: twitter.com/apec_ceosummit|
PwC, the world’s leading provider of advisory, tax, and legal services, said in an APEC CEO survey released last week that Vietnam tops cross-border investment among the 21 member economies, with a net 46 per cent of respondents planning to increase investments over the next 12 months.
Vietnam even ranks higher than attracting regional destinations like China (45 per cent) and Thailand (39 per cent), thus marking it the second consecutive year of Vietnam achieving the top ranking.
|Figure 1: Top APEC economies to receive increased cross border investment over the next 12 months (net increase) (Source: PwC’s APEC CEO Survey 2018)|
|Figure 2: Impact of technology on jobs in businesses in Vietnam and APEC
(Source: PwC’s APEC CEO Survey 2018)
|Figure 3: Top areas that Vietnam should improve upon to advance in the digital economy (Source: PwC’s APEC CEO Survey 2018)|
The high rank is attributed to APEC business leaders’ confidence in revenue growth in the country. In particular, 33 per cent of respondents in Vietnam indicated that they are ‘very confident’ of their companies’ short-term growth prospects, with another 48 per cent being ‘somewhat confident.’
International trade is likely to continue being a source of growth for Vietnam-based companies: 40 per cent expect a rise in revenue opportunities thanks to new bilateral trade agreements, and 34 per cent anticipate such chances to arise from new multilateral agreements. With a positive perspective on revenue growth, a net 51 per cent of business leaders in the APEC are planning to raise levels of investment, up from 43 per cent two years ago. The biggest winners across the APEC for foreign investment are set to be Vietnam, China, the US, Australia, and Thailand, with Vietnam on top for the second consecutive year.
“With major trade deals like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Vietnam Free Trade Agreement (FTA), and the ASEAN-Hong Kong FTA on the horizon, Vietnam has the potential to attract even more investment and generate new cross-border business opportunities,” said Dinh Thi Quynh Van, general director of PwC Vietnam.
Last week Vietnam became the seventh nation to adopt the CPTPP, while the EU-Vietnam FTA is to be signed imminently, creating new business opportunities for foreign investors in Vietnam. The country’s registered foreign direct investment is projected to rise 10 per cent this year from $36 billion last year, which was up 44.4 per cent against 2016.