More than half of German businesses wish to expand investment in Vietnam

15:28 | 17/11/2018 Economy

54% of German companies wish to expand their business in Vietnam over the next 12 months and 52% want to hire more employees for their factories, according to a survey announced by the Delegate of German Industry and Commerce in Vietnam (GIC/AHK Vietnam).

Siemens is one of the successful German businesses in Vietnam - Photo: Vietnam Finance

The survey was conducted by the Network of German Chambers of Commerce Abroad (AHKs), through collecting feedback from over 3,500 German companies worldwide.

According to Marko Walde, chief representative of GIC/AHK Vietnam, the Vietnamese economy will continue to grow and the EU-Vietnam Free Trade Agreement (EVFTA) is expected to further boost Vietnam’s growth.

Vietnam is an important partner of Europe and Germany in ASEAN. In addition, due to the US-China trade tension, foreign companies are looking to relocate their manufacturing to China’s neighbouring countries in order to avoid tax increases arising from the dispute.

However, the legal framework for investment and business and a lack of high-quality manpower are major challenges for German investors in Vietnam.

The survey also notes that, despite decent growth in Asia, the expectations of German businesses are not as high as in early 2018.

German companies expect the region’s economic growth to slow down as a result of the US rate increases and the impacts of the US-China trade dispute.

Theo NDO