Thai businesses in Vietnam keen on expansion: survey

By Vien Thong April 4, 2024 | 11:57 pm PT

Some 66% of Thai businesses operating in Vietnam are interested in expanding, the highest ratio for any country in Southeast Asia, a survey by lender HSBC has found.

They were followed by companies from Malaysia (58%) and Indonesia (55%), the ASEAN Business Sentiment survey, which polled 600 companies from Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam, said.

Of the Thai businesses, 93% were confident about growing their company in Vietnam, behind only Vietnamese (98%) and Singaporean (95%) businesses.

Thailand continues to be a major contributor of FDI in Vietnam, being the ninth biggest investor with $14 billion.

In August last year Thailand’s second largest lender, Kasikornbank, said it would invest $1 billion in Vietnam by 2027.

The fourth largest bank, The Siam Commercial Bank Public Company, has announced plans to buy out consumer loan company Home Credit Vietnam for around EUR800 million ($866 million)

Most Southeast Asian businesses (87%) want to invest within the region for geographical proximity and cultural similarities.

Vietnam last year attracted $36.61 billion in FDI, up 32% from 2022.