09 Jun 2022
Around 93% of German firms operating in Vietnam will keep investing in the country, whilst 64% forecast their business development to receive a boost over the next year.
This is according to a poll by AHK World Business Outlook – Spring 2022 published this week, carried out by the German Chambers of Commerce Abroad, Delegations and Representative Offices (AHKs).
The results of the survey showed that Vietnam’s border reopening and government policies have bolstered the recovery from the pandemic.
German firms are now more optimistic in regard to economic development in Vietnam over the coming year, compared to last year. More than 46% are planning to recruit more employees in the next 12 months, according to a Vietnam Plus report.
The firms polled also said that key factors for their operations in Vietnam include political stability, skilled worker availability and transport and logistics.
Due to Vietnam’s participation in free trade agreements, it boasts favourable conditions to attract foreign direct investment.
According to Marko Walde, Chief Representative of AHK: “Instead of focusing on a specific market and production base, German businesses are expanding their supply chains, and 95% are looking at Southeast Asia, specifically Thailand and Vietnam,” he said.
Walde added that Vietnam plays an important role in international trade flow.
“Among the 10 ASEAN member states, Vietnam is one of the four countries participating in the CPTPP, and together with Singapore, it is the only two countries with a free trade agreement with the EU so far,” he continued.
The AHK World Business Outlook collated feedback from over 4,200 German businesses, branches and subsidiaries across the globe, along with companies who have close links to Germany, in March and April 2022.