Private equity investors are paying more attention to Vietnamese marketand ready to put additional resources here in expectation of betterlong-term returns, according to the Grant Thornton global private equityreport 2014-2015.
The report made reference to the bi-annual12th survey that was conducted in the fourth quarter, 2014, involvingdecision-makers and investors working in the private equity (PE) sectorboth in and outside Vietnam.
In the survey, respondents’positive sentiment towards the economy achieved its highest responserate in the last two years, reaching 72 percent.
They intendto maintain or even increase investment fund allocation to Vietnam, inthe next 12 months, with responses by 64 percent and 87 percent,respectively.
Education, real estate, food &beverages, and retail are, again, the leading sectors which are seen asespecially attractive for investment.
While therole of market growth as a driver of value growth increased from 35percent to 43 percent among respondents, performance improvementdecreased from 49 percent to 35 percent, reflecting the current marketcondition.
When considering an investment into aVietnamese private company, transparency in business activities isconsidered the most important factor with 21 percent of the respondentschoosing this category, showing no change compared to the last survey.
Twenty percent of respondents said they are concerned most about corporate governance in Vietnam.
There is an increase among respondents to 41 percent who believe thecost of debt will decrease slightly in the next 12 months.
Nevertheless, the economy is still facing many challenges, includingslow reforms in the state-owned sector, inadequate infrastructure,difficulties in obtaining debt financing, corruption, and thecomplications in government red tape and legislation.
In terms of unattractive ranking, there is a portion of respondentswho no longer see the country as a potential destination (5 percentcompared to nil in the last survey).
According tothe ASEAN Business Outlook Survey conducted by the American Chamber ofCommerce in Singapore, the most attractive countries for new businessexpansion are Indonesia, followed by Vietnam and Myanmar.-VNA
The report made reference to the bi-annual12th survey that was conducted in the fourth quarter, 2014, involvingdecision-makers and investors working in the private equity (PE) sectorboth in and outside Vietnam.
In the survey, respondents’positive sentiment towards the economy achieved its highest responserate in the last two years, reaching 72 percent.
They intendto maintain or even increase investment fund allocation to Vietnam, inthe next 12 months, with responses by 64 percent and 87 percent,respectively.
Education, real estate, food &beverages, and retail are, again, the leading sectors which are seen asespecially attractive for investment.
While therole of market growth as a driver of value growth increased from 35percent to 43 percent among respondents, performance improvementdecreased from 49 percent to 35 percent, reflecting the current marketcondition.
When considering an investment into aVietnamese private company, transparency in business activities isconsidered the most important factor with 21 percent of the respondentschoosing this category, showing no change compared to the last survey.
Twenty percent of respondents said they are concerned most about corporate governance in Vietnam.
There is an increase among respondents to 41 percent who believe thecost of debt will decrease slightly in the next 12 months.
Nevertheless, the economy is still facing many challenges, includingslow reforms in the state-owned sector, inadequate infrastructure,difficulties in obtaining debt financing, corruption, and thecomplications in government red tape and legislation.
In terms of unattractive ranking, there is a portion of respondentswho no longer see the country as a potential destination (5 percentcompared to nil in the last survey).
According tothe ASEAN Business Outlook Survey conducted by the American Chamber ofCommerce in Singapore, the most attractive countries for new businessexpansion are Indonesia, followed by Vietnam and Myanmar.-VNA
