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Wednesday, June 19, 2024

Nearly 93% of German firms say will expand Vietnam operations

By Le Hoang

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HCMC – Nearly 93% of German enterprises operating in Vietnam said they will continue to invest in the country and over 64% of them said their businesses will fare better in the next 12 months, according to a survey by the German Chambers of Commerce Abroad, Delegations and Representative Offices (AHKs).

The survey, released on June 8, showed that German companies were more optimistic about their economic development outlook in the next 12 months than they were in the autumn of last year.

Over 46% of German businesses said they are planning to increase hiring in the coming year. Respondents said the most important factors for their trade and investment decisions in Vietnam were political stability, the availability of skilled workers in technical and non-technical fields, and improved transport and logistics infrastructure.

In addition, Vietnam has favorable conditions to attract foreign direct investment flows thanks to its participation in free trade agreements.

More than 73% of German businesses participating in the survey believed that the European Union-Vietnam Free Trade Agreement had improved their competitiveness in Vietnam.

They have made the most of the ASEAN-China Free Trade Agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership to grow their businesses.

While doing business in Vietnam, German firms consider the availability of skilled labor in technical fields (58.3%), the quality of education in technical fields (58.3%) and tariff trade barriers (56.5%) as the most important factors.

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