Invest ASEAN 2015: Vietnam poised to be the next powerhouse

Experts discuss investability in Vietnam. Source: the Hanoi Stock Exchange

Vietnam has the potential to become the world’s next factory, and will probably be receiving investment from several international funds, whose collective assets amount to $5 trillion, according to experts which attended the Invest ASEAN 2015 summit, at Ho Chi Minh City on Tuesday. The country that is located right next to China, is likely to become the manufacturing hub for the ASEAN region, once the ASEAN Economic Community is formed, they added.

A young population, a stable political and economic scene, and an increasing number of consumer, makes it a particularly competitive economy in an attractive place like ASEAN; especially as its labour cost is just half of that of China, Thailand, Philippines and Malaysia, explained John Chong, CEO of Maybank Kim Eng.

Also read: Invest ASEAN 2015: Opportunities galore in the ASEAN region

Investors might have been familiar with the “China plus 1” strategy, in which Vietnam is seen as a hedging replacement for China, if their operations are exposed to risks in the most populated country.

Vu Minh Khuong, associate professor at the Lee Kuan Yew School of Public Policy, noted that the recent surge in export has again affirmed the position of Vietnam in the region’s economic map. The country’s export during the 2005-14 period increased nearly 20 per cent, far ahead of Indonesia, Malaysia, Thailand and Philippines.

“Vietnam has become a hot destination for global electronics producers and technology companies, who have brought in billion-dollar projects. Investors land in Vietnam not only because of cheap labour, but also with a desire to join the global supply chain,” commented Huynh Quang Hai, deputy general director of the Vietnam – Singapore Industrial Park (VSIP).

Foreign investors at the summit said that they were keenly observing the policy developments in Vietnam. These include, the privatisation of state-owned companies and increasing the limit of foreign ownership in public companies. Currently, the limit is 49 per cent for a joint stock company and 30 per cent in banks.

Related stories: AEC Effect: ASEAN banks follow retail & realty investors, into Vietnam

Vietnam’s overseas investment expands to $20b

Vietnam lures $1.56b in investments from Korean firms

Singapore cos invest $211.42m in Vietnam by April-end 2015

Japanese firms seek more investment in Vietnam: Survey

 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.