The country’s 46 percent figure was higher than for Thailand (43 percent), Malaysia (40 percent), Turkey (35 percent), and China (17 percent), the report, which polled 2,400 executives working for global companies in 10 middle-income countries, found.
It was behind Nigeria (81 percent), India (64 percent), Indonesia (57 percent), and Brazil (49 percent).
In Vietnam, 45 percent said they would keep operations at the same level for the next three years, 1 percent plan to contract their operations and the rest did not have plans, the report released this week said.
Asked about the biggest obstacles to operating in Vietnam, they said investment approvals, local sourcing requirements and expatriate restrictions.
In terms of competitive pressure, 31 percent said they face pressure from other global firms operating locally, 30 percent listed foreign firms in other markets and 24 percent said Vietnamese firms.
“In Vietnam, FDI allowed more than 350,000 individuals to enter formal manufacturing employment between 2007 and 2016,” the World Bank said.including
Bui Ngoc Son from the Institute of World Economy and Politics said Vietnam still lacks several factors that multinational companies need such as infrastructure, logistics, low costs rents and skilled labor.
FDI has been a key driver of Vietnam’s economic growth. Foreign companies account for around 70 percent of the country’s exports. FDI rose 7.2 percent to $38 billion last year.
- Number of new firms up 36 percent in May
- Listed companies’ profits in free fall as coronavirus takes toll
- Vietnam has highest rate of SMEs in Southeast Asia with expansion plans
- Recruitment demands drop 20 percent in Q2
- Listed firms return to profit growth
- Vietnam GDP could top Singapore‚Äôs this year: IMF
- Firms to recruit more workers in Q3
- Vietnam has 75,200 new firms in seven months