US businesses favour Vietnam 2nd after Indonesia

KFC vietnamAmong the ten ASEAN countries, Vietnam is US businesses’ second choice for expansion after Indonesia, a recent survey conducted by the American Chamber of Commerce in Singapore has shown.

Indonesia, Vietnam, Thailand and Myanmar were the most popular locations for business expansion while Brunei and Laos were the least, according to the AmCham Singapore’s ASEAN Business Outlook Survey 2014.

43 per cent of US firms said they want to expand their businesses in Vietnam. The rate is 49 per cent in Indonesia and 40 per cent in Thailand.

Among those US companies that want to enlarge businesses in Vietnam, 77 per cent said they want to expand their own business, 4 per cent wanted to contract, 18 per cent said they would remain the same, and the rest said they do not have a clear plan yet.

Vietnam is a market with a lot of potentials, especially for beverage firms, Ahmet Bozer, Chairman of Coca-Cola International, told Cong Thuong (Industry and Trade) newspaper. Coca-cola is now hiring around 15,000 employees in Vietnam and is planning to hire 500 more, he said.

Mary Beth Tuner, Deputy Economic Counselor of the US in Vietnam told Cong Thuong that many US investors are thinking of switching their business from China to Vietnam as production costs in China have been increasing.

She highlighted the participation of Vietnam in negotiations for the Trans-Pacific Partnership (TPP) trade deal, saying it has strengthened the confidence of US firms to invest in Vietnam, even with those who have not done business in Vietnam and just intend to do so.

The TPP, whose member countries account for nearly 40 per cent of the global economy and one-third of all world trade, aims to eliminate barriers to goods and services and address issues including the movement of electronic data, market access for financial firms, and copyright protection.

Tariffs on most goods traded between members will be zero over 10 years, while other free trade and bilateral agreements allow open markets and cut taxes on a more limited range of goods.

Planned to be finished by the end of this year, TPP negotiations see participation of 12 nations including Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Japan.

The participation of Vietnam in TPP negotiation shows that the country has committed to improve transparency in doing businesses, which will increase its attractiveness for investment and make Vietnam stand out in comparison with other countries in the region that are not a part of the trade talks, said Tuner.

After Vietnam becomes a member of TPP, investors will also enjoy tax cuts and the trade turnover between Vietnam and the US will be much higher than the $25 billion recorded last year, she added.



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Among the ten ASEAN countries, Vietnam is US businesses' second choice for expansion after Indonesia, a recent survey conducted by the American Chamber of Commerce in Singapore has shown. Indonesia, Vietnam, Thailand and Myanmar were the most popular locations for business expansion while Brunei and Laos were the least, according to the AmCham Singapore’s ASEAN Business Outlook Survey 2014. 43 per cent of US firms said they want to expand their businesses in Vietnam. The rate is 49 per cent in Indonesia and 40 per cent in Thailand. Among those US companies that want to enlarge businesses in Vietnam, 77...

KFC vietnamAmong the ten ASEAN countries, Vietnam is US businesses’ second choice for expansion after Indonesia, a recent survey conducted by the American Chamber of Commerce in Singapore has shown.

Indonesia, Vietnam, Thailand and Myanmar were the most popular locations for business expansion while Brunei and Laos were the least, according to the AmCham Singapore’s ASEAN Business Outlook Survey 2014.

43 per cent of US firms said they want to expand their businesses in Vietnam. The rate is 49 per cent in Indonesia and 40 per cent in Thailand.

Among those US companies that want to enlarge businesses in Vietnam, 77 per cent said they want to expand their own business, 4 per cent wanted to contract, 18 per cent said they would remain the same, and the rest said they do not have a clear plan yet.

Vietnam is a market with a lot of potentials, especially for beverage firms, Ahmet Bozer, Chairman of Coca-Cola International, told Cong Thuong (Industry and Trade) newspaper. Coca-cola is now hiring around 15,000 employees in Vietnam and is planning to hire 500 more, he said.

Mary Beth Tuner, Deputy Economic Counselor of the US in Vietnam told Cong Thuong that many US investors are thinking of switching their business from China to Vietnam as production costs in China have been increasing.

She highlighted the participation of Vietnam in negotiations for the Trans-Pacific Partnership (TPP) trade deal, saying it has strengthened the confidence of US firms to invest in Vietnam, even with those who have not done business in Vietnam and just intend to do so.

The TPP, whose member countries account for nearly 40 per cent of the global economy and one-third of all world trade, aims to eliminate barriers to goods and services and address issues including the movement of electronic data, market access for financial firms, and copyright protection.

Tariffs on most goods traded between members will be zero over 10 years, while other free trade and bilateral agreements allow open markets and cut taxes on a more limited range of goods.

Planned to be finished by the end of this year, TPP negotiations see participation of 12 nations including Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Japan.

The participation of Vietnam in TPP negotiation shows that the country has committed to improve transparency in doing businesses, which will increase its attractiveness for investment and make Vietnam stand out in comparison with other countries in the region that are not a part of the trade talks, said Tuner.

After Vietnam becomes a member of TPP, investors will also enjoy tax cuts and the trade turnover between Vietnam and the US will be much higher than the $25 billion recorded last year, she added.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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