US companies find Vietnam the second most attractive country, after Indonesia, for new business expansion in the Association of Southeast Asian Nations (ASEAN).
The finding was part of new survey results released on August 20 by the American Chamber of Commerce in Singapore (AmCham Singapore) and the US Chamber of Commerce.
In a poll of 475 senior executives from US companies operating in the 10 ASEAN countries, 43 percent of all respondents said they have plans for business expansion in Vietnam as compared with 49 percent for Indonesia.
Of the 69 respondents in Vietnam, 61 percent expect their workforce to increase in the country in the remaining months of 2013 and in 2014 as 62 percent expect profits to increase in 2013 and 85 percent, in 2014.
The majority of respondents in Vietnam speak highly of availability of low cost labour (59 percent), personal security (55 percent) and sentiment towards the US (55 percent).
They indicate dissatisfaction in Vietnam’s infrastructure (65 percent), laws and regulations (59 percent) and tax structure (57 percent).
As many as 42 percent of respondents in Vietnam are operating in the service sector and 51 percent in the manufacturing sector, most in electronics, pharmaceuticals and medical manufacturing.