Private equity investors still keen on Vietnam
Print 
Vietnam remains an attractive destination for private equity investors, even in the current “challenging” global economic environment, according to a survey by consulting firm Grant Thornton Vietnam.
The “Private Equity-Vietnam Investment Environment and Outlook" survey on 200 foreign businesses with private equity investments in Vietnam found most respondents held favorable views about investing in Vietnam.
Of the investors that took part in the Quarter 4 survey, 76 percent said they considered Vietnam a more attractive investment destination than any other country. Only 20 percent of respondents said Vietnam was less attractive than other countries.
Of the survey respondents with investments in more than one country, 59 percent said they planned to increase their investment in Vietnam over next 12 months. Only 9 percent said they planned to reduce investment in Vietnam.
The survey found 65 percent of the surveyed businesses had a positive view of economic conditions in Vietnam over the next 12 months while 4 percent were negative. The remaining 31 percent held a neutral view.
“Recent economic data, particularly rising inflation and likely continued devaluation of the Vietnam dong, has provided some investors with reasons to be less confident about the Vietnamese economy,” said Trinh Kim Dung, advisory services manager of Grant Thornton Vietnam.
“However, the fundamentals for growth remain, and most investors sit on the positive side of the fence,” she added.
Vietnam’s economy is expected to grow 6.7 percent this year.
It grew at 5.3 percent in 2009, slower than the 6.2 percent posted in 2008.
Grant Thornton Vietnam is a member of the Grant Thornton International Ltd, an organization of independently owned and managed accounting and consulting firms. It started operating in Vietnam in 1993.
