Vietnam attractive despite global recession: survey

Vietnam is becoming an increasingly attractive investment destination for Asian businesses while China is losing some of its appeal, according to a survey of Asian business leaders published Friday.

The annual poll, conducted by the Asia Business Council of its members, mostly Asia-based CEOs and chairmen, also showed 75 percent of them expect business conditions to worsen in Asia as a result of the global financial crisis and a US economic slowdown. It showed that China remained the top destination for investment by Asian companies this year, followed by India, but Vietnam surpassed the US, pushing it into fourth place. Investment in China, however, has seen a drop in the last two years. In the latest survey, 61 percent of respondents said they invested in China in the past year, down from 64 percent in 2007 and 77 percent in 2006. Investment in Vietnam jumped 28 percent in the past year, the survey showed, compared to 25 percent in 2007. The survey was conducted in September and October and based on responses from 54 of 69 council members. Only 6 percent of respondents expected business conditions to improve, compared with 32 percent in a similar survey a year ago. According to 42 percent of respondents inflation was the biggest problem in Asia, while 30 percent named recession. There was little change in reported investment plans for the next one to three years compared with a year ago, suggesting companies were taking a wait-and-see attitude amid an uncertain investment climate. Source: TN, Reuters