According to Forbes, the Vietnamese business community, typically VinFast, with its successful listing on the US stock exchange, building a factory in North Carolina, opening stores in France, Germany, the Netherlands, etc., is a dynamic model for global businesses from Southeast Asia.
As Forbes begins its in-depth analysis, everyone is looking for growth opportunities these days as China’s economy slows. The question is, where will high-growth companies list when major economies, including the U.S., are still struggling to find their footing? The answer points to Southeast Asia as the next destination for emerging Asian companies.
VinFast car model display area at the exhibition “VinFast – For a green future”. Photo: Getty
Southeast Asia, especially Singapore, Vietnam and Indonesia, are poised to become economic powerhouses in the coming decade. Their young populations and business-friendly environments are creating fertile ground for innovative companies ready to go global . NASDAQ could be a viable path for many Emerging Growth Companies (EGCs) on their journey to international expansion.
According to Forbes, Singapore is becoming a regional financial hub as businesses look for options outside of Hong Kong (China). Singapore's strengths include a growing technology sector and a good investment environment. Large businesses in Singapore also have extensive experience in international relations, along with a modern legal system and strict accounting practices.
Also in Southeast Asia, Forbes specifically mentioned Vietnam. The dynamism of the Vietnamese business community, according to Forbes, shows the model of Silicon Valley in previous years. The listing on the US stock exchange of VinFast, an automobile manufacturer with its main production facility in Hai Phong, is a typical example. While VinFast's parent company - Vingroup - is a well-known name in the region, this global expansion has brought Vietnam's advanced electric vehicle manufacturing capacity to customers around the world in record time.
VinFast officially listed on the Nasdaq Global Select Market on August 15.
In just a few years, VinFast has established its US headquarters in Los Angeles, is building a massive factory in North Carolina expected to produce 150,000 cars a year, and has opened stores in France, Germany, and the Netherlands.
In addition to VinFast, Fobes also mentioned VNG - a Vietnamese technology company that is also planning to raise capital in the US in the near future.
Forbes analyzed that Vietnam's outstanding growth has attracted great attention from the political world. President Joseph Biden recently visited Hanoi to further strengthen the cooperative relationship. Here, President Joe Biden attended the Vietnam - US talks, the Innovation & Investment Summit with senior leaders of American companies such as Intel, Google, Boeing, and GlobalFoundries, as well as Vietnamese companies.
Also at these meetings, the US President highly appreciated Vietnamese businesses, especially the meaningful presence of VinFast in the US. “Last year, a Vietnamese company signed a $4 billion deal to build an electric car and battery factory in the US state of North Carolina. The factory has created 7,000 jobs for workers in the region,” President Joe Biden said about VinFast.
To conclude the visit, the Biden administration signed a comprehensive strategic partnership with Vietnam, including agreements on research, technological breakthroughs, semiconductor supply chains, and workforce development.
Alongside Vietnam, Forbes also mentioned Indonesia - another regional hub with a remarkable growth rate. The country's advantages include a population of more than 270 million, an increasingly tech-savvy population and the government's commitment to economic modernization. Indonesia's GDP growth is expected to hover around 5% in 2023 as advanced economies in Europe and the US struggle to overcome inflation and slow growth.
Tech unicorns have listed on Indonesian exchanges. In 2022, e-commerce giant GoTo raised $1.1 billion. PT Bukalapak.com raised $1.5 billion in 2021. Indonesia's e-commerce market is valued at $40 billion.
As predicted, Southeast Asia is emerging as another global economic engine as supply chains, technology development, and corporate funding diversify into new markets. As emerging companies look for ways to sustain growth, the US stock market is seen as an attractive option to optimize valuations and gain access to a liquid market. This can be achieved through a direct listing or through a SPAC, which provides companies with a faster path to an IPO in the US.
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(Source: Forbes)
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