HCMC – Up to 90% of Vietnamese businesses are planning to expand internationally, with Southeast Asia being their preferred destination, showed a recent study by United Overseas Bank (UOB) Vietnam.
The UOB Business Outlook Study 2024, which surveyed over 4,000 businesses across ASEAN and China, found that most Vietnamese firms are optimistic about the current business environment and are predicting 6% growth this year.
This confidence is likely fueled by Vietnam’s leading position in regional digitalization, with 41% of businesses having digitized their entire operations. Most companies plan to increase their budget for digital transformation in 2024, despite concerns about cybersecurity and skills shortages.
The UOB study showed that businesses are seeking tax incentives and financial assistance to overcome the hurdles of international expansion. The primary motivation for expansion, cited by 60% of businesses, is to increase revenue, with digital cross-border trade platforms being a popular means to achieve this goal.
Within Southeast Asia, Thailand is the top target market for Vietnamese businesses, followed by Singapore, Malaysia and Indonesia. China is also an attractive market, with 37% of businesses showing interest.
