The Grant Thornton’s Private Equity – Vietnam Investment Environment and Outlook Survey revealed that 67 percent of the foreign investors said they considered Vietnam a more attractive investment destination than any other country in Southeast Asia.
The information was announced by Ken Atkinson, Grant Thornton Vietnam’s director at Southeast Asia Private Equity (PE) Conference held in Ho Chi Minh City with the participation of over 500 international investors, investment funds and securities brokers.
The PE operation in Vietnam is no longer limited by the number of investors, but has been expanded to more PE communities thanks to good economic growth, said Ken Atkinson.
For foreign PE, the Vietnamese private companies are providing opportunities for them to come back and focus on long-term investments, he added.
Recent studies showed that four of ten largest economies in the world will be China, India, Japan and Indonesia, contributing to the global growth of up to 60 percent, according to Frederick Burke, a managing lawyer of Singapore-based Baker & McKenzie Co.
To not separate from the development, Vietnam should make a strong growth strategy towards the private sector, removing bottlenecks on infrastructure and logistics, he added.
Southeast Asia region, from 2011 onwards, will witness a blooming wave of private investment funds, Etienne Chenevier, director of Star City Singapore investment fund, said in the sidelines of the conference.
Venture capital funds are looking for markets and strong links with the PE in this region to launch new private investment fund in a number of potential emerging markets including Vietnam.
In the future, PE activities will focus more on fields of information technology and real estate.
But the PE activities in the host country will be more or less affected by the flow of foreign investment capital, so the field of banking and finance will play an important role for PE activities in developing countries.