Emerging economies are labeled so for a reason, and their popularity among technology companies and investors is not weakening. Our Technology Leaders Forecast Survey found that 43 percent of respondents are looking to expand operations into emerging markets, with China, India, and Southeast Asia leading the way.
Interestingly, the responses skewed toward heavy investments by large companies into Southeast Asia, and DLA Piper Partner Khoa Do has high praise for Vietnam’s potential to be a hotbed of activity for the tech industry.
Compared to its neighbors, Vietnam has the fastest-growing economy, he said, and in terms of GDP growth, it is on the heels of India. This year, Vietnam has attracted a record $15.3 billion in foreign direct investment.
“I think this phenomenon has been fueled by Vietnam’s fast-growing $70 billion economy that has been absolutely blessed with a population of 86 million industrious people, a low median age of 27, and rock-bottom unit-labor costs,” he said.
Another noteworthy finding is the confidence respondents have in tech firms based in the United States to originate “leapfrog” technologies, with China and India named frequently as runners-up. Given the current financial crisis, however, some firms may miss out in the short term if risk aversion becomes a greater focus.
Monday, October 20, 2008
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11 comments:
There's been a lot of talk about vietnam lately. will be interesting to see if they catch an added boost from teh current downturn.
The talk so far has been just that...a lot of talk. I know of very few who view Vietnam as a viable emerging market and even fewer who would be willing to make that type of bet given the state of the economy.
To the contrary, may multibillion dollar companies are investing in Vietnam -- Intel Corporation, Cisco Systems, IBM, eBay, Toyota, Samsung, Yahoo!, Google. The list is endless. And major private equity firms have already closed significant transactions in Vietnam.
To the contrary, MANY multibillion dollar companies are investing in Vietnam -- Intel Corporation, Cisco Systems, IBM, eBay, Toyota, Samsung, Yahoo!, Google. The list is endless. And major private equity firms have already closed significant transactions in Vietnam.
True, the business world has focused much on Vietnam lately. This country surely shows a lot of promise and we should all pay close attention. Maybe Khoa Do and DLA Piper can guide us there!!
My company is looking to do M&A in Vietnam. Khoa Do is already on our speed dial.
Vietnam is a clear alternative to China and India. Big businesses until now have lacked effective counsel on how to do business there. Khoa, we hope you're not too busy.
vietnam is an untapped growth area and few know how to navigate. it's nice to see a name firm with a specialty in this area as you have to be careful and know who you're dealing with before investing capital.
Vietnam's advantage is that the country is small enough to have a quick turnaround compared to larger countries like China and India; especially in todays current economic crisis. Khoa Do clearly has the inside track when it comes to doing business in Asia.
Khoa Do speaks with authority regarding Asian Markets including Vietnam. I don't think one can go wrong, if he is doing the navigating. He is very adept on domestic deals as well.
Clearly Vietnam will benefit from its own economic maturation as well as growth in Asia as a whole -- but that doesn't make investing there risk free. You maximize your potential returns by developing the right investing strategy and executing on that strategy.
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