The 25-year-old company driver is serious about getting fitter, scheduling his badminton games religiously after his eight-hour work shift. 

He now has more time to eat and drink with his friends, after leaving his security guard job to take on this new role at a Malaysian firm in Ho Chi Minh City. 

As a driver, he is paid US$100 a month, higher than the US$80 he was paid as a security guard on a seven-day week. 

With the increasing number of foreign firms setting up shop in this country, more Vietnamese youths like Loi have the bargaining power to demand higher pay from expatriate-run businesses. 

Vietnam is becoming increasingly attractive to foreign investors, primarily for its labor cost, as most Malaysian businessmen would point out.  

Most, if not all, would agree that the cost in Vietnam is about one-third that in China. This has led intensive-intensive manufacturing firms such as Latitude Tree Bhd, Furniweb Industrial Products Bhd and Scientex Inc Bhd to set up plants near Ho Chi Minh, some as early as 1992.  

Also, Vietnamese industries are becoming more profitable as the country opens itself to the world.  

This was propelled by a string of events last year. Vietnam captured the world’s attention as host to the Asia-Pacific Economic Cooperation (APEC) meeting and to Microsoft chairman Bill Gates, and joined as a new World Trade Organization (WTO) member. 

Even Intel has announced plan to invest some US$1bil in the Saigon Hi-Tech Park earlier this year. 

This was apparently driven by the enactment of Vietnam's doi moi (renovation) policy in 1986, which called for increased economic liberalization and structural reforms to produce more competitive, export-driven industries. 

Currently, Malaysia only ranks the 10th largest foreign investor, after Taiwan, Singapore, South Korea and Hong Kong. 

After hearing news about high profits and return of investments from doing business in Vietnam, more Malaysians are entering the market by setting up plants and factories and bidding for projects.  

As shared by a long-time Malaysian investor in Ho Chi Minh City, last year’s surge in Malaysian businesses in Vietnam reflects a kind of herd mentality – following others in the hope of reaping similar gains. 

But the question is, are Malaysians too late in picking the best fruits from the tree? 

Admittedly, the risk appetite of Malaysians is different from those of the Taiwanese, Singaporeans, Japanese and South Koreans, who have been doing business in Vietnam for some 10 to 20 years. 

Singapore, as the third largest foreign investor in Vietnam with close to US$10bil pumped into the country, went as far as setting up an industrial park jointly with the Vietnamese government. 

As Vietnam continues to attract profit-hungry firms, it naturally leads to increased costs. 

The cost of doing business may just be higher than one believes based on market talk, attributed to rising land prices and labor costs due to the upsurge in demand. 

Many Malaysians with business in Vietnam were “burnt” in 1997, and therefore it is understandable if Malaysians are hesitant to re-enter the Vietnamese market.  

But the economic scenario is very different now.  

With a more open Vietnamese government as well as so many incentives and allowances offered, who can we blame if this newly installed WTO member and our other neighbors overtake Malaysia in the Global Competitiveness Index? 

Source: theStar online