Report: Vietnam is the number 1 investment market

Global investors have pinpointed Vietnam as one of the top emerging markets in the world.

Vietnam - one of the best places for investors to put their money in

According to a new report published September 15 by UK Trade & Investment and Economist Intelligence Unit, Vietnam is seen as one of the best places for investment globally.

The ‘Great Expectations: Doing business in emerging markets’ report offers new insights from international investors about which markets they see as being the global growth engines of the future.

Vietnam has been selected as the number one investment destination, beyond the BRICs (Brazil, Russia, India, China), for the third consecutive year.

The top three markets for investors in the next two years are thought to be China (20%), Vietnam (19%), India (18%).

The report is based on a survey of more than 520 global executives from every sector. All respondents are already doing business in emerging markets or plan to do so in the next two years.

Launching the new report in London, Vince Cable, the UK Business Secretary said: “The balance of global economic power is shifting towards emerging markets and this is recognised in the UK Trade & Investment’s report.”

According to the report, emerging markets are viewed as sources of new consumer demand. 76% of investors see emerging markets as a source of new business growth.

71% of respondents agreed that emerging markets beyond the BRIC countries collectively offer an opportunity too big to ignore. Companies are now prioritising a range of other countries alongside their well-established operations in the BRIC countries.

Far more executives believe that the potential rewards far outstrip the risks within both the BRIC countries and other emerging markets. 52% expect growth prospects for their once-risky emerging markets business to be "significantly better" over the next two years.

The report also reveals that local companies in emerging markets are sought after for partnerships and alliances. Despite a greater ease with the risks of new places, the need to tap into local knowledge and contacts quickly remains strong.

Emerging markets are not just for big business. One in three SMEs polled plan to expand into one new emerging market over the next two years through joint ventures or partnerships with local companies.

Sources: Economist Intelligence Unit survey, July- August 2010; Survive & Prosper: emerging markets in the global recession (2009); Tomorrow’s Markets (2008)