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Mr. Lim Dyi Chang, Director of Corporate Banking at UOB Viet Nam, noted that this could involve investment activities, establishing offices and business locations abroad, or engaging in international trade.

Of these businesses, nearly 70 percent identified ASEAN as their top choice for expansion, with Thailand being the most favored destination, followed by Singapore, Malaysia, and Indonesia.

Mainland China was the second most popular market, with 37 percent of businesses looking to invest there.

However, expanding abroad presents significant challenges for Vietnamese businesses. About 40 percent of survey respondents cited a lack of customers in new markets and difficulties in finding suitable partners. Legal, regulatory, compliance, and tax barriers were also significant concerns.

To successfully expand into foreign markets, Vietnamese businesses are seeking financial support such as tax incentives or refunds (42 percent), and grants or subsidies for new markets (40 percent).

In addition to financial support, over 40 percent of Vietnamese businesses are looking for non-financial assistance, such as connections with large enterprises that could become potential customers in foreign markets.

Besides, the report revealed that most Vietnamese businesses maintain a positive outlook on the current business environment, with this optimism surpassing the regional average.

To enhance business performance this year, companies plan to increase the adoption of digital solutions, upgrade equipment or facilities to boost productivity, and diversify sales channels to promote growth.

UOB Viet Nam's 2024 Business Outlook Study, which surveyed over 4,000 businesses including large enterprises and SMEs in seven key markets across ASEAN and China, reveals these insights. The study included 525 businesses from Viet Nam.

Viet Nam's overseas investment reached US$137 million over the first six months of 2024. Of this amount, US$118.6 million was channelled to 57 new projects, while the remaining capital was added to three existing projects./.