American Firms See Vietnam as Favorable for Long-Term Investment

Business Confidence and Investment Outlook

The key element of a rebound roadmap for Vietnam was consistent policies throughout the country that would allow people to living safely with the Covid-19 virus. Seventy-eight per cent of American companies in Vietnam says the country remains a “positive” or “very positive” long-term investment destination.

A November 15-17 survey by the American Chamber of Commerce (AmCham) in Vietnam also found 25 per cent of the respondents saying they expect to recover to normal operations by the end of this year, while two-thirds anticipate recovery by the first half of next year.

The survey, which polled 550 corporate members and 2,000 individual representatives, found 45 per cent of AmCham member companies operating at 60 per cent or more and one-fifth are at 80 per cent or more.

Operational Challenges and Responses

The key risks limiting companies’ operations now was international travel restrictions, according to 66 per cent of the respondents, followed by supply chain disruptions/costs (56 per cent) and domestic travel restrictions/complications (49 per cent).

Many companies said they were facing labour shortages, mainly because they’d returned to their hometowns, according to 57 per cent of respondents. Fifty-six per cent said another factor for the worker shortage was that schools were closed and parents were struggling with managing work and online learning. In response, companies are offering flexible work schedules and providing assurances of vaccine access to attract more workers.

Key Elements for Rebound Roadmap

Almost all the respondents (92 per cent) felt that the key elements of a rebound roadmap for Vietnam were consistent policies throughout the country that would allow people to live safely with the Covid-19 virus. Other factors are more vaccines/herd immunity (83 per cent) and streamlined procedures for foreign expert approvals and travel (73 per cent).

Reference: vnexpress