11:03:30 AM | 25/12/2010
Up to over 82% out of 200 interviewed foreign firms’ executives in Vietnam said that the retail sector is the most appealing to foreign companies in the country, auditing and consultancy firm Grant Thornton said in a survey released on December 20.
“With domestic retail sales growing at 25% year-on-year, it is not surprising that retail remains the most attractive sector for the private equity investors”, Managing Partners of Grant Thornton Vietnam Ken Atkinson said.
The domestic economy continues to shift towards modern trade and away from traditional markets, and this is providing opportunities for investors to develop brands and to gain share as a foundation for their future, Atkinson added.
The survey covering healthcare and bio-tech, oil and gas, agriculture, real estate, transport, financial services, manufacturing and hospitality and tourism indicated that healthcare and pharmacy ranked second with around 76% of the respondents.
Oil, gas and natural resources are still considered by respondents to be less attractive investments, as are agriculture and manufacturing.
Whilst there has been a slight drop in investor confidence over 2010, up to 59% of interviewees plan on increasing their investments in Vietnam over next 12 months.
Respondents have reported that the limited availability of debt financing and lack of cooperate transparency remains a barrier to investment. Corruption, however, which was considered to be seriously impeding investment, has become relatively less detrimental. (Grant Thornton)
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