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Investor optimism increases
Fifty-nine per cent of respondents in a recent survey have a more positive outlook about the Vietnamese economy than they had in April, according to a survey conducted by consulting firm Grant Thornton Vietnam.
In April, only 36 per cent of respondents held a positive view.
The survey, released yesterday, November 17, showed that 67 per cent of the respondents considered Viet Nam more attractive than other investment destinations.
The survey, Private Equity in Vietnam - Investment Sentiment and Outlook, canvassed the opinions of more than 200 senior investors and advisors.
"More and more private equity investors are seeking to acquire strategic stakes in local Vietnamese companies as part of their investment portfolio," said Kenneth Atkinson, managing partner of Grant Thornton Vietnam.
"The continued growth in the domestic economy during a globally uncertain investment period has shown that the country offers opportunities that other economies cannot provide," he added.
Of the different investment sectors, healthcare and pharmaceuticals, and retail were identified by respondents as the most attractive sectors for investment in Viet Nam.
Retail is no longer the most attractive, as it was in the April 2009 survey, but is still seen by more than 70 per cent of respondents as positive or very positive.
The survey identifies obstacles related to investment in Viet Nam, with infrastructure again seen as a problem by almost 95 per cent of respondents.
Matthew Lourey, corporate finance director at Grant Thornton Vietnam, stated that "problems with infrastructure are an impediment to investment in the country."
"Investors appreciate the need for infrastructure as part of an efficient economy, and whilst these problems persist we will likely see reduced levels of actual investment despite the general optimism towards the economy," he said.
The survey also identified the continued difficulty in accessing debt finance, with almost 77 per cent respondents indicating that debt finance was difficult or extremely difficult to arrange in the current environment. Meanwhile, a mere 6 per cent said it was relatively easy to obtain loans.
VietNamNet, Viet Nam News
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