German firms intend to expand investment in Vietnam
Fifty-five percent of German businesses, when asked, have said they want to increase investment capital in Vietnam, higher than the rate for Southeast Asia (44 percent), according to a survey conducted by the German Industry and Commerce Vietnam (GIC) in April.
The AHK World Business Outlook 2019 was announced at a press conference in Hanoi on June 20 (Source: tapchihuongviet.eu)Hanoi (VNA) – Fifty-five percent of German businesses, when asked, have said they want to increase investment capital in Vietnam, higher than the rate for Southeast Asia (44 percent), according to a survey conducted by the German Industry and Commerce Vietnam (GIC) in April.
The survey namely “AHK World Business Outlook 2019” involved German investors and businesses in Vietnam operating in various fields such as industry, construction, services, and trade.
German enterprises stayed optimistic about their performance in Vietnam as well as growth prospects for 2020 despite global economic crisis and escalating trade tensions, according to the survey.
Specifically, 77 percent of German businesses assessed their business situation in 2019 as good. Last year, only 56 percent had a positive view of their performance. This result is much higher than the average rate of Southeast Asian nations – 61 percent.
2018 was evaluated as a successful year of Vietnam’s economy with a GDP growth of 7.1 percent. The foreign direct investment (FDI) reached 13 billion USD while the import-export turnover hit a record of 465 billion USD, with a trade surplus of over 7 billion USD.
The Vietnamese Government is willing to support foreign investors to do business in the country.
Vietnam’s participation in a number of free trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA) is a favourable factor to boost the country’s economy.
The survey also showed that compared to other Southeast Asian countries, Vietnam received more special attention from German businesses.
Fifty-nine percent of German investors in Vietnam plan to hire more workers in 2019-2020 to serve the expansion of their business.
The conclusion of negotiations for the EVFTA is expected by German businesses to help improve the legal framework and economic policies in Vietnam.
However, they also pointed to some factors that might pose challenges to their development such as economic policies, lack of high-quality labour, increasing personnel costs, and trade barriers.
Chief representative of the GIC in Vietnam Marko Walde said the country is one of the Southeast Asian nations that German businesses have selected to land investment.
A majority of German businesses having factories in Vietnam had intention to increase investment capital in Vietnam, he added.-VNA
You should also see
Energy industry needs nearly 5 trillion VND of investment in 2021-2030
The total investment capital demand for the whole energy sector in the 2021-2030 period is between 4.13-4.8 trillion VND (163.01-189.46 million USD), according to a plan to implement the National Power Planning in the 2021-2030 period with a vision to 2050.
See more
Business
Investor confidence gains traction on improved business climate
Better investment climate, with simplified administrative producers and special incentives, has helped improve investor confidence, thus catalysing investments from a wider pook of both domestic and international investors for socio-economic development.
Business
Vietnam’s rice exports may exceed 2024 target
With positive results recorded so far, Vietnam can exceed its target of 7.6 million tonnes in rice export volume set for 2024, Nguyen Ngoc Nam, Chairman of the Vietnam Food Association, said at a conference in the Mekong Delta city of Can Tho on April 26.
Business
Ample room for Quang Ninh to attract FDI
The northeastern province of Quang Ninh has ample room to attract foreign direct investment (FDI) and realise the goal of attracting 3 billion USD in FDI this year and 10 billion USD in the 2020-2025 period.
Business
Long An, Dong Nai introduce strengths in RoK
The southern province of Long An and Dong Nai introduced their investment climate as well as socio-economic development orientations at an investment promotion conference held in the Republic of Korea (RoK) on April 26.
Business
Vietnam makes initial efforts to approach creative industries: CIEM
Vietnam has made initial efforts to approach creative industries and services, particularly a policy framework related to creative economy development, according to a new report released by the Central Institute for Economic Management (CIEM).
