|A section of the Viet Nam High Quality Products Trade Fair held last month in HCM City. There has been an important reversal in the past two years, with firms now experiencing more growth from domestic markets than through overseas expansion. — VNA/VNS Photo Thanh Vu
HA NOI (VNS) — New findings from a survey conducted by global office provider Regus indicates the number of Vietnamnese companies seeking business opportunities in the domestic market is 260 per cent higher than those looking overseas.
The one-month poll, which surveyed more than 200 Vietnamese businesses, is a part of global study which collected the opinions of more than 20,000 senior executives and business owners across 95 countries.
The research proves that 42 per cent of the companies are seeking domestic growth, while only 17 per cent look forward to growing internationally.
According to the research, the five most important barriers to international growth by Vietnamese firms were the need to hire top-quality staff (89 per cent), lack of access to flexible office space (84 per cent), lack of market information (74 per cent), lack of local knowledge and connections (63 per cent) and the need to set up a local distribution network (63 per cent).
The focus on home-grown growth is even more significant in emerging markets, where three times as many companies (51 per cent) were seeking domestic growth compared to the number of companies seeking growth overseas.
This provides evidence that more people in developing countries have started to benefit from the results of economic recovery, as consumer confidence has begun to recover and reliance on exports has diminished.
Serge Dupaux, country manager at Regus Viet Nam, the global workplace provider, stated that there has been an important reversal in the past two years, with firms now experiencing more growth from domestic markets than through overseas expansion. The trend highlights how important it is for businesses to remain flexible and scalable so that they can respond to market volatility but also highlights an important increase in consumer purchasing power in emerging economies.
"Regardless of whether businesses are expanding in new markets in their own country or abroad, they rely on a series of key factors. They need to access reliable and up-to-date market information, to have a network, and to have easy access to a number of options when considering the best location to set up. In addition, flexible working space allows businesses to rapidly react to the markets and keep their capital free for investment in further growth," he said.
Founded in Brussels, Belgium, in 1989, Regus is based in Luxembourg and listed on the London Stock Exchange. — VNS