Over 90% of German Businesses Plan Investment Expansion in Vietnam

9:55:43 AM | 6/13/2022

Nearly 93% of German businesses plan to expand investment in Vietnam and more than 64% expect good business outcomes in the next 12 months.

These facts are found in a survey on business confidence of German companies in Vietnam conducted in March and April by the German Industry and Commerce in Vietnam (AHK).

Accordingly, German businesses in Vietnam believed in business prospects and more positive economic growth than in the autumn survey of 2021.

Mr. Marko Walde, Chief Representative of AHK Vietnam, said that Vietnam plays an important role in international trade flows. Currently, more than 450 German businesses are operating in Vietnam and employing nearly 50,000 workers, thus furthering their positive contributions to bilateral economic relations.

According to the survey, one of the important factors that increase the interest of German businesses in Vietnam is border reopening together with drastic and timely response policies of the Government to motivate post-pandemic economic recovery.

More than 46% of respondents plan to hire more workers next year. The most important factors for their investment and business decisions in Vietnam are a stable political situation, and high-quality human resources in the technical, engineering, transportation and logistics industries.

Besides, Vietnam can make the most of free trade agreements to draw foreign capital flows. More than 73% of German companies believed that the Vietnam-EU Free Trade Agreement (EVFTA) will increase their competitiveness in Vietnam.

Other important factors include high-quality human resources in technical fields (58.3%), education quality in technical fields (58.3%) and tariff barriers to trade (56.5%).

To persuade more German investors to enter Vietnam, Mr. Marko Walde emphasized that Vietnam needs to develop a production supply network and high quality, capable human resources to meet investors’ needs. In addition, it is necessary to build a renewable energy network soon to become the foundation for future development.

By Ha Thu, Vietnam Business Forum