Illustrative image. (Photo: VNA) Hanoi (VNA) – Corporates from the Association of Southeast Asian Nations (ASEAN) are optimistic about their businesses in Vietnam, with 58% having existing or future plans to expand sales in the country.
This was released in the 'Winning in ASEAN' report launched by Standard Chartered on November 24, showcasing business sentiments, opportunities, and strategies that corporates can undertake to navigate the global shifts and drive growth in the region. The findings underscore the impetus for greater effective public-private partnership (PPP) to accelerate recovery and resilience in ASEAN and beyond.
The report shows that Vietnam has made significant progress in becoming a dynamic, cost-competitive nation. The country has received greater attention as an alternative manufacturing hub as businesses increasingly adopt a 'China plus one' diversification strategy.
Anchoring on three national strategic plans, namely New National Industrial Policy, Digital Transformation Plan, and National Strategy on Green Growth, Vietnam has a long-term plan to digitalise production and supply chains. For instance, it is developing smart factories to improve efficiency and competitiveness and foster priority industries and green growth.
Vietnam's medium- to long-term prospects remain bright, supported by its favourable demographics, improving domestic fundamentals and a strong commitment to regional and global integration, said Michele Wee, CEO of Standard Chartered Vietnam.
As an increasingly important player in international trade and global supply chains, and with its role as an alternative manufacturing hub, Vietnam continues to present appealing opportunities for businesses looking to expand in the region, she said.
Last year, ASEAN was the third highest recipient of Foreign Direct Investment (FDI) globally, with 74 billion USD poured in, returning to pre-pandemic levels. Some 50% of ASEAN's FDI influx originate from the US, EU-27, and China. Intra-ASEAN FDI made up about 12% of the region's FDI inflows in 2021.
Trade agreements, such as the Regional Comprehensive Economic Partnership (RCEP), are expected to further accelerate growth. With the RCEP in place, 81% of the business leaders surveyed plan to increase investments in ASEAN over the next three to five years. Overall, 93% of them expect positive revenue growth from their ASEAN businesses.
Benjamin Hung, Chief Executive Officer of Standard Chartered Asia, said ASEAN is an oasis of growth, with its GDP forecast to grow about 4% annually to 4.5 trillion USD by 2030.
"Amid global complexities, we see structural trends presenting significant opportunities in ASEAN, where there is growing inter-connectivity in trade and capital flows, strong digital adoption, and an acceleration of green transition," he said, adding that corporates need to act decisively to capture what ASEAN has to offer today.
Hung said that as a leading regional international bank, Standard Chartered is committed to supporting its clients in capturing these exciting opportunities.
The report indicated that business leaders will also progressively step up on net zero to drive long-term growth, with 52% of those surveyed planning to invest in sustainability initiatives within the next three years.
The findings showed that the top three areas where collaboration needs to be strengthened in the next two to three years to advance progress are forming more new partnerships to unlock potential across the value chain, upskilling to future-proof the workforce, and developing infrastructure solutions more proactively through PPP.
Heidi Toribio, regional co-head of Client Coverage, Asia, Corporate, Commercial and Institutional Banking of Standard Chartered, said that regional and international companies are increasingly realigning their business models and embedding sustainability to future-proof their operations.
"Standard Chartered is committed to working with our clients to re-visit their investment strategies and achieve their growth ambitions.
"As the only international bank with a full presence in ASEAN, our diverse network, in-depth local knowledge and comprehensive suite of capabilities set us apart as the ideal banking partner," she said./.
