The US Chamber of Commerce recently published a survey on business prospects in 2017 in ASEAN member states. The information is based on the 2017 ASEAN Business Outlook Survey recently issued by the US Chamber of Commerce and the American Chamber of Commerce in Singapore (Amcham Singapore).
The survey found positive prospects and abundant trade opportunities for American businesses in ASEAN. Accordingly, 53% of respondents replied that ASEAN markets became more important for them over the last two years. Up to 78% of businesses expected for higher revenues in 2017 and 49% planned to expand their labor force in ASEAN at the end of 2016.
A majority of respondents (87%) forecast higher trade transactions and investment in the next five years. Noticeably, up to 40% of American businesses responded that Viet Nam took the lead in ASEAN for market expansion and investment; followed by Indonesia, Myanmar, Thailand, and the Philippines.
Vietnam also led other ASEAN member states in FDI attraction from American businesses which intended to withdraw from China in the next two years. Respondents praised Viet Nam’s advantages such as competitive labor costs (65%); individual security (65%); stable political system (64%); infrastructure (61%); and stability of the legal system (54%).
Almost all business managers said that the domestic business and investment environment was improved significantly. However, they also pointed out weaknesses including corruption (71%) and the lack of guaranteeing from local authorities (46%). Up to 50% of respondents said that the regional integration positively influenced performance of American businesses there.
Accordingly, the survey manifests optimism about the growth prospects and commercial opportunities in ASEAN. 53% of respondents reported that ASEAN markets have become more crucial for their companies’ worldwide revenue over the past two years, and 78% of executives forecasting that profit increases in 2017 and 49% expecting to increase their ASEAN workforce by the end of 2016.
Most of the respondents (87%) predicted that their companies’ level of trade and investment in ASEAN will increase in the next five years. 40% of the US businesses said Viet Nam is leading among ASEAN members in attracting investment from the U.S. thanks to its advantages of low cost labor, personnel security, stable political system, infrastructure and legal system.
Almost all managers supposed that the business climate in Vietnam has been remarkably improved. About 50% of surveyed American enterprises said the formation of the ASEAN Economic Community will bring positive effects for the US firms’ investment and business in Vietnam. While more than half of respondents stated that the Trans-Pacific Partnership affected their investment plans in Vietnam in particular and ASEAN in general.
