Photo: GIC/AHK Vietnam
More than half of respondents to AHK survey plan to increase their investment in Vietnam.
German investors are upbeat on Vietnam as fine destination for their future investments thanks to recently-signed trade agreement between Vietnam and the European Union (EU).
“German enterprises are now seeking investment opportunities and expanding existing investments in Vietnam as they see the country as an attractive destination given the EU - Vietnam Free Trade Agreement (EU-VN FTA) and the TPP, together with advantages in location,” Mr. Marko Walde, Chief Representative of German Industry and Commerce in Vietnam (AHK Vietnam), said in a press release issued on May 31.
The Vietnam section of the AHK World Business Outlook Survey 2016 released on May 31 in Ho Chi Minh City and conducted by AHK’s network worldwide on 3,400 German companies, showed that more than half were positive about the future of Vietnam’s economy and 47 per cent expect even greater economic development in the country.
Fifty-four per cent of German investors said they were considering increasing their investment in Vietnam next year and 58 per cent will engage more employees under their investment plans.
Almost 70 per cent said they believe their business situation at this time is good, when asked about their perceptions.
When asked about challenges for future investments in Vietnam, factors cited included the economic conditions, shortages of skilled workers, and increasing labor costs. Infrastructure and energy and commodity prices, meanwhile, are considered positives.
In Vietnam, German companies are more confident about the economy and business development than in other ASEAN countries or China and India, according to the report, and there are very positive signs in business confidence, outlook and expectations among German companies in Vietnam.
The Delegation of German Industry and Commerce in Vietnam (GIC/AHK Vietnam) has been providing support and enhancing the business relationship between Germany and Vietnam since 1993. Every year it supports hundreds of German companies in doing business and searching for partners and suitable investment locations in Vietnam and also helps Vietnamese firms in developing markets in Germany.