The ‘Asean Business Survey Outlook 2015’ lists Indonesia, Vietnam and Myanmar as business favorites for the US.
UC companies have found new favorites in Indonesia, Vietnam and Myanmar for future expansion, leaving Thailand out of the top mix in the ASEAN region. The ‘Asean Business Survey Outlook 2015’, held by the American Chamber of Commerce Singapore and the US Chamber of Commerce, reveals that despite various challenges the three countries are preferred over Thailand mostly due to the country’s unstable government, corruption and increasing labor costs.
Rated as the top destination for business expansion, Indonesia is preferred by US firms because of a 24 percent rise in personal security since 2009, apart from large market size, low labor cost and upwardly mobile demographics. However, inadequate infrastructure, corruption, lack of trained manpower, customs and taxation and regulatory issues are considered as major hindrances.
There was an investment of $65 billion between 2004 and 2012 by US companies, making them the biggest foreign investors in the country. US investors are currently eyeing exports of heavy machinery, oil exploration and consumer goods in Indonesia.
Myanmar has gotten into the good books of the US as it offers affordable labor, personal security and is open to US’ business advances more than any other country in the surveyed region. Nonetheless, the country’s housing cost, unskilled labor, commercial site costs and lack of proper infrastructure hold it back.
Ranking second-highest in the list, Vietnam leads Myanmar in personal security and even lower costing labour.
Brunei and Laos were reportedly of least interest for respondents in the survey.