Vietnam is a Hot Piece of Cake for Investment

In a newly developed ranking system, PriceWaterHouseCoopers rates Vietnam as the World’s currently most attractive investment country for manufacturing businesses, surpassing China, Poland, Chile and Malaysia. The report suggests that businesses looking to invest in emerging markets to look beyond the BRIC countries.
“Vietnam takes the top spot as the most profitable emerging market for manufacturing companies”, is the recent conclusion of a new report from PriceWaterHouseCoopers.
PriceWaterHouseCoopers recently introduced a new index, EM20 Index – Balancing Risk and Rewards, ranking the 20 best emerging markets according to their relative attractiveness for overseas investment in either manufacturing or services sectors.
The index measures the relative value created per dollar invested in companies that are 50% export orientated, and at the same time the index also considers the risk involved in making the investment. This measurement represents the relative attractiveness of business investment opportunities in each country considered. The generated values are then translated on to a 0-100 scale.
Vietnam ranked the highest in the index for manufacturing with a score of 95 (out of 100). PriceWaterHouseCoopers concluded that Vietnam is a highly cost-competitive country that offers investors the potentially highest return, though one should also have in mind that Vietnam was rated the fourth riskiest investment location within the 20 emerging markets. However, the potential returns from investments in Vietnam are so great that they offset the country’s relatively high country risk premium.
With investments already pouring into Vietnam since the accession to the WTO in January 2007, this new status could potentially bring the country further in its integration into the global economy cementing Vietnam’s status as a new Asian dragon.
“To me, the impressive ranking of Vietnam in the EM20 Index only confirms that this is indeed the time for Danish companies to turn their eyes on Vietnam. Commercial opportunities are ample and potential rewards substantial. The future belongs to countries like Vietnam and it is important that Danish business joins the party while the best seats are still available,” says Denmark Ambassador to Vietnam Peter Lysholt Hansen.

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