Indian businesses: Vietnam is a potential market for development

Indian businesses choose VietnamIndonesia, Malaysia and Singapore, because these are the markets that bring the most development potential.

All of the Indian enterprises participating in the survey are eager to increase production in ASEAN and more than 90% of these businesses predict revenue to grow within the next 12 months.

According to Standard Chartered Bank, Vietnam is a rapidly developing economy with a large domestic market, young population… (Artwork – Photo: Investment Newspaper)

The consumer market is expanding in ASEAN (according to 90% of the respondents), abundant and skilled labor force (51%) and the ability to access international markets through the Agreements. Free trade (44%) was the most important factor for Indian business leaders participating in the survey to decide to expand development in this region.

In addition, with the Regional Comprehensive Economic Partnership (RCEP) expected to help attract more investment flows to ASEAN, 63% of surveyed businesses have plans to expand investment in the next 3-5 years.

In terms of target markets in ASEAN, 61% of enterprises surveyed said that they are focusing on expanding their operations in Indonesia because this is the market that offers the best potential for development, according to the report. followed by Vietnam (49%), Malaysia and Singapore (46%).

Besides opportunities, enterprises participating in the survey also pointed out many risks and challenges in the region. The three biggest risks are the situation of COVID-19 epidemic or other health-related risks (85%), a slow economic recovery and reduced consumer demand (73%) and geographical instability. political and commercial conflicts (54%).

The biggest challenges in the next 6-12 months include: Changing the business model to adapt to the conditions and practices of each field (more than 60%), understanding the regulations of countries in the region as well as such as payment methods and infrastructure, building relationships with suppliers, and adapting to the logistics requirements of the supply chain.

In order to promote balanced and stable growth in ASEAN and mitigate these risks and challenges, the business leaders participating in the survey pointed out important aspects that need attention, including: establish partnerships/joint ventures to increase presence (73%), invest in human resource and leadership development (59%), promote sustainable development and ESG initiatives including the environment school, society and governance (41%).

According to Ms. Michele Wee, General Director of Standard Chartered Bank Vietnam, Vietnam is a rapidly developing economy with a large domestic market, young population, educated and tech-savvy workforce. and has competitive cost, along with many outstanding advantages of being a member of many free trade agreements and having a very convenient geographical location.

“Vietnam is also an important link in the global supply chain. We believe that Vietnam will continue to offer attractive business and investment opportunities for foreign investors and businesses.” , said Ms. Michele Wee.

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