Nearly half of multinational firms eye Vietnam business expansion in next 3 years

The figure was higher than 43 percent of Thailand, 40 percent of Malaysia and 17 percent of China.

However, Vietnam’s figure stood behind Nigeria, with 81 percent, India, with 64 percent, Indonesia, with 57 percent.

In the Southeast Asian country, 45 percent of businesses said they would maintain operations at the same level for the next three years, while one percent plan to reduce operations.

Foreign direct investment, has been a growth engine of Vietnam’s economy. Foreign firms account for 70 percent of the country’s export revenue.

FDI allowed more than 350,000 individuals to enter formal manufacturing employment in the country between 2007 and 2016, World Bank said. It raised average manufacturing wages, which increased 12 percent.

Consequently, these wage increases brought about by FDI helped reduce poverty. Conservative estimates suggest that FDI contributed to lifting at least 24,000 in Vietnam in the period.