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Wednesday, June 19, 2024

German firms keen on energy, agriculture in Vietnam

The Saigon Times

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HCMC – German companies have expressed keen interest in investing in Vietnam, particularly in agriculture, food, and renewable energy such as solar and wind power, according to the German Business Association in Vietnam (GBA).

In the year till now, German companies have initiated 28 new investment projects worth US$342 million. This represents a remarkable increase of 410.1% compared to the same period last year.

As of October 2023, German businesses had got involved in a total of 459 investment projects in Vietnam, with pledged capital amounting to US$2.5 billion. Nearly 500 German firms are actively engaged in ongoing business activities in Vietnam or are in the process of establishing collaborative ventures with Vietnamese partners.

For a substantial portion of these companies, the local market’s growth potential plays a pivotal role in their decision to expand their business operations. According to a survey conducted by the German Industry and Commerce in Vietnam, around 91% of German businesses are contemplating business expansion in Vietnam, a notable increase compared to the figures recorded in 2021.

Despite prevailing global economic uncertainties, 42% of these companies intend to focus on diversifying their product offerings, while 41% prioritize enhancing sales and marketing strategies. The service sector has attracted investments from 35% of German firms, with logistics also appealing to 31% of them.

Having been established in Vietnam since 1995, GBA has grown over the past 28 years to comprise 375 business members and 15 partners. This has solidified its position as one of the largest foreign business associations in Vietnam. The GBA is also one of the founding members of the European Chamber of Commerce in Vietnam (EuroCharm).

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