Vietnam is A Sustainable Investment Location for German Businesses: AHK World Business Outlook Survey
On June 8, the German Chambers of Industry and Commerce in Vietnam held a conference in Hanoi, reporting the results of the AHK World Business Outlook Survey for Spring 2022.
|Photo: VNT/ Zoey Nguyen|
According to a survey conducted by the German Chambers of Industry and Commerce with 4,200 German enterprises in 92 countries, up to 64.3% of enterprises believe that the situation of production and business in Vietnam in the next 12 months will improve, only 7.1% of enterprises believe that the situation will not change.
German businesses in Vietnam believe in the business prospects and economic growth momentum of the country in the next 12 months. But the high price of fuel and raw materials, and the shortage of skilled workers are still two big challenges for business activities.
About 53.6% of German businesses surveyed believe that Vietnam's economic growth will increase in the next 12 months.
The opening of the border along with the drastic and timely policies of the Government have created the impetus for the economic recovery after the pandemic. Compared with the autumn of 2021, German businesses were more optimistic about Vietnam's economic development prospects.
The equilibrium score, which measures German firms' expectations for the development of the Vietnamese economy, increased from 7 last fall to 43 this year.
When asked, up to 93% of German enterprises said that they will continue to invest in Vietnam in 2022-2023, 46% will continue to recruit within the next 2 years.
|Ms. Dao Thu Trang - Head of AHK Communication and Government Relartion reported the survey results at the conference. Photo; VNT/ Zoey Nguye|
Turning crisis into opportunities
|Mr. Marko Walde - Chief Representative of the German Chamber of Industry and Commerce (AHK) in Vietnam answering questions at the conference. Photo: VNT/ Zoey Nguyen|
At the press conference, Marko Walde - Chief Representative of the German Chamber of Industry and Commerce (AHK) in Vietnam - said that Vietnam businesses must proactively take advantage of opportunities from the current economic situation.
"Vietnam's attraction lies in an important position in the flow of international trade. Vietnam is one of two member states of ASEAN that have a free trade agreement with the European Union (EU), said Walde.
He introduced the number of German businesses are actively operating in Vietnam, with more than 500 businesses, responsible for 28,000 jobs.
"German businesses are looking to allocate and diversify their supply networks. Beside their investment from China, many German companies are looking new investment locations in Southeast Asian countries to eliminate risks and secure better opportunities," Walde explained the investment trend of German businesses in Asia.
|Mr. Robin Hoenig - Divisional Head of Trade Policy Competence Centre (Asia/ASEAN). Photo: VNT/ Zoey Nguyen|
Answering Vietnam Times reporter, Mr. Robin Hoenig - Divisional Head of Trade Policy Competence Centre (Asia/ASEAN) highlighted some key insights of the European Union–Vietnam Free Trade Agreement (EVFTA) and its current impacts on Vietnam, saying that: "There are many outstanding benefits of EVFTA that Vietnam businesses can utilize, the agreement improves the competitiveness of German exporters in the Vietnamese market, lifts most tariff barriers, increases Vietnam's competitiveness as a supply market, reduces economic barriers in trade, helps to expand service markets. EVFTA is also a good sign of Vietnam's commitment to international labor, investment and environmental standards."
The AHK World Business Outlook is based on a regular survey of member companies of the German Chamber of Commerce Abroad, Delegations, and Representative Offices (AHKs). In spring 2022, it collected feedback from more than 4,200 German companies, branches, and subsidiaries worldwide, as well as those with close ties to Germany.
The survey has become a barometer of the business confidence among German companies and a key indicator of the German business situation, confidence, and economic expectation.
Participants from Vietnam: 46.4% of the responding companies are from the service sector, 39.3% are from the industry and construction sector, and another 14.3% are trading companies.
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