Most of surveyed German firms plan expansion in Vietnam

August 10, 2023 | 14:28

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About 91per cent of German companies are planning to expand their investment in Vietnam, according to a survey conducted by the Delegation of German Industry and Commerce (AHK) in Vietnam.

Most of surveyed German firms plan expansion in Vietnam | Business | Vietnam+ (VietnamPlus)

Despite challenges such as inflation, uncertainties of the world economy, and the increasing political influence on supply chains, Vietnam is expected to experience a resurgence in its economic growth in the medium-term. (Photo: baodautu.vn)

Hanoi - About 91 per cent of German companies are planning to expand their investment in Vietnam, according to a survey conducted by the Delegation of German Industry and Commerce (AHK) in Vietnam.

The AHK World Business Outlook Spring 2023 – Vietnam Focus shows that 40 per cent of the surveyed firms also have plans to increase their workforce in the next 12 months.

Despite challenges such as inflation, uncertainties of the world economy, and the increasing political influence on supply chains, Vietnam is expected to experience a resurgence in its economic growth in the medium-term.

The growth will be fueled by various factors, including Free Trade Agreements (FTAs), the China Plus One strategy, the global trend of shifting and persifying manufacturing supply chains towards competitive hubs in Southeast Asia, and the inflow of green investments, the report said.

About 500 German companies have invested some 2.9 billion USD in the Southeast Asian nation so far, mainly in its southern and northern regions that make up 60 per cent and 22 per cent of the total capital, respectively. They have generated about 50,000 jobs, thus significantly contributing to the bilateral ties.

As of July 20, newly-registered capital, additional investment, capital contribution and share purchase by German investors in Vietnam amounted to nearly 197 million USD, with 21 new projects, mainly in the construction and building material sector.

To lure more foreign investors, the AHK suggested the Vietnamese Government further streamline administrative procedures and invest more in infrastructure development, particularly in transport and logistics.

Furthermore, enhancing the competitiveness of domestic enterprises, spurring the development of industrial clusters, providing intensive personnel training, observing international standards, and ensuring stable electricity supply for sustainable development are crucial solutions to raise Vietnam's attractiveness, it said.

Vietnam introduces investment potential to German firms

Vietnamese Ambassador to Germany Nguyen Minh Vu has briefed German businesses on Vietnam’s economic development and potential for companies in Baden-Württemberg State’s Karlsruhe city to invest in Vietnam.

Vietnamese, German firms join hands in developing wind power projects

The Construction Joint Stock Company 47, Vu Phong Energy Group and Steag Energy Services GmbH of Germany signed in Hanoi on December 15 a memorandum of understanding (MoU) on jointly providing consultancy services for the implementation of wind power projects nationwide.

German firms hope for stronger partnership with Vietnam

The German business community have high expectations for stronger economic cooperation with Vietnam after the phone talks between Vietnamese Party General Secretary Nguyen Phu Trong and German Chancellor Olaf Scholz on March 31.

Most German firms plan to continue operating in Vietnam

Almost 93 percent of German companies already operating in Vietnam will continue to invest in the country and over 64 percent of them expect their business to develop better in the next 12 months, a survey from AHK World Business Outlook–Spring 2022 has revealed.

By VNA

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