Buoyed by a strong economy and excited by international prospects, Vietnamese businesses are anticipating a very bright future, according to the latest survey from HSBC.
The global survey polled 9,131 businesses in 35 markets and revealed nearly all Vietnamese businesses (97 per cent) believe their sales will grow over the next year; significantly higher than the global and APAC averages (79 per cent and 77 per cent, respectively).
Thirty-nine per cent of businesses in Viet Nam are classified as ‘high-growth firms’, meaning they foresee achieving at least 15 per cent growth over the next year – nearly double the number of high-growth businesses globally (22 per cent). The mid-term view in Viet Nam is even brighter, with 100 per cent of firms expecting sales to grow over the next five years.
“From an international trade perspective, Viet Nam is one of the most optimistic countries globally and justifiably so,” said Tim Evans, CEO, HSBC Viet Nam.
“The domestic economy is in a good place, hitting a 10-year peak of 7.1 per cent growth in 2018, and bolstered by continued strong momentum in 2019 with Q3 growth reaching 7.31 per cent. Middle-class income and consumption are increasing, and the manufacturing sector continues to go from strength to strength and the service sector is providing additional positive impetus to strong underlying economic growth.”
Evans said: “Viet Nam remains well-poised to make substantial gains from international trade in the years ahead”.
The survey shows Vietnamese firms also see beyond the bottom line when it comes to the positive impacts of international trade. Over the next five years, 98 per cent believe it will drive innovation (compared to 80 per cent globally), while 96 per cent say it will provide new business opportunities (79 per cent globally) and 95 per cent feel it will improve efficiency (78 per cent globally).
More than one third of firms surveyed (32 per cent) are already exploring digital technologies to enhance their supply chains to and to move closer to the end consumer. As a shortage in skilled labour continues to be a deterrent for foreign investors, businesses in Viet Nam are improving the quality of their products and services and investing in training new skills for their workforce.
Vietnamese companies are also increasingly recognising the importance of sustainability as a factor driving the long-term viability of their business and as a way to attract and retain talent. More companies in Viet Nam (28 per cent) believe their expected sales growth will be supported by making their business sustainable than any of the 35 markets surveyed in the Navigator report. — VNS