Private equity investors are paying more attention to the Vietnamese market, readying additional resources in expectation of better long-term results, according to the Grant Thornton global private equity report for 2014 to 2015.
The report cited the 12th bi-annual survey conducted in the fourth quarter of 2014, with participation from decision-makers and investors working in private equity inside and outside Vietnam.
In the survey, 72 percent of voters responded with positive sentiments about the economy – the highest rate in two years.
Respondents intended to maintain or even increase investment fund allocation to Vietnam in the next 12 months, with education, real estate, food and beverage, and retail seen as the most attractive sectors for investment.
While the role of market growth as a driver of value growth increased from 35 percent to 43 percent among respondents, performance improvement decreased from 49 percent to 35 percent, reflecting current market conditions.
When considering investing in a private Vietnamese company, transparency in business activities was considered the most important factor – as it was during the last survey – with 21 percent of respondents choosing it.
Twenty percent of respondents said they were most concerned about corporate governance in Vietnam, and about 41 percent believed the cost of debt will decrease in the next year.
Nevertheless, the economy is still facing many challenges, including slow reforms in the public sector, inadequate infrastructure, difficulties in obtaining debt financing, corruption, and complications with red tape and legislation.
About 5 percent of respondents no longer see the country as a potential destination – compared with zero in the last survey.
According to the ASEAN Business Outlook Survey conducted by the American Chamber of Commerce in Singapore, the most attractive country for new business expansion is Indonesia, followed by Vietnam and Myanmar.-VNA
The report cited the 12th bi-annual survey conducted in the fourth quarter of 2014, with participation from decision-makers and investors working in private equity inside and outside Vietnam.
In the survey, 72 percent of voters responded with positive sentiments about the economy – the highest rate in two years.
Respondents intended to maintain or even increase investment fund allocation to Vietnam in the next 12 months, with education, real estate, food and beverage, and retail seen as the most attractive sectors for investment.
While the role of market growth as a driver of value growth increased from 35 percent to 43 percent among respondents, performance improvement decreased from 49 percent to 35 percent, reflecting current market conditions.
When considering investing in a private Vietnamese company, transparency in business activities was considered the most important factor – as it was during the last survey – with 21 percent of respondents choosing it.
Twenty percent of respondents said they were most concerned about corporate governance in Vietnam, and about 41 percent believed the cost of debt will decrease in the next year.
Nevertheless, the economy is still facing many challenges, including slow reforms in the public sector, inadequate infrastructure, difficulties in obtaining debt financing, corruption, and complications with red tape and legislation.
About 5 percent of respondents no longer see the country as a potential destination – compared with zero in the last survey.
According to the ASEAN Business Outlook Survey conducted by the American Chamber of Commerce in Singapore, the most attractive country for new business expansion is Indonesia, followed by Vietnam and Myanmar.-VNA
