Competitiveness a big factor in investment decisions

Vietnam's merger and acquisition market continues to show resilience amidst global geopolitical uncertainty.

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Masataka “Sam” Yoshida, head of the Cross-border Division at RECOF Corporation, spoke with VIR’s Thanh Van about how the market is navigating the challenges.

Could you share the rippling impact of the Middle East crisis on the Vietnamese market?

Although there are arguments on how much a country is relying on imported oil (in which case the Philippines or Thailand would be worse than Vietnam) or how long the oil stockpile will cover the domestic consumption (in which case Vietnam could be more vulnerable than the others), higher oil prices surely have negative impact on the national economy if the current situation with shortage of oil supplies and soaring prices continue.

The share of petrochemical sector does not seem to be so high in Vietnam in comparison to its peers in the region. However, the impact would be big in the transportation sector, as well as manufacturing sector in general, which are the key drivers of the economy’s growth, with negative impact over time on the competitiveness due to higher imported material costs, fuel costs, etc.