Illustrative image (Source: VNA)
Kuala Lumpur (VNA) – Up to 38 percent of Malaysian firms chose Vietnam as their favoured Asian destination for business expansion in the next 3-5 years, according to the 2016 Asian Enterprise Survey released by the United Overseas Bank (UOB) on March 31.

The firms said they were drawn to Vietnam’s stable political climate (44 percent), huge and growing customer demand (42 percent), and favourable tax and regulatory environment (32 percent).

Vietnam continues to be attractive for foreign investment thanks to its 6 percent growth and a young workforce base with 60 percent of its 90 million population aging below 35.

The findings were taken from more than 2,500 interviews granted to financial planners working for Malaysia-based Asian enterprises which have been in operation for at least three years and earn at least 3.5 million USD each year.

UOB Malaysia Chief Executive Officer Wong Kim Choong said Malaysian investors in Vietnam mostly operate in export-oriented industries such as manufacturing, health care, pharmaceuticals, construction and real estate, adding that they also look forward to more opportunities brought about by Vietnam’s free trade agreements with the European Union and the Eurasian Economic Union.

UOB has noticed Vietnam’s strategic importance since 1995 when the bank opened a branch mostly serving foreign businesses in the country, he said.-VNA