Illustrative photo (Source: VNA)

HCM City (VNA) – As many as 54 percent of the German businesses operating in Vietnam wish to expand their operation in the next 12 months, while 52 percent hope to recruit more employees for their factories, according to the annual AHK World Business Outlook released on November 13, 2018.

The report, made by the German Chambers of Commerce in various countries around the globe, includes comments from German businesses in Vietnam and the world on economic development at present and in the future.

It has the engagement of 3,500 German enterprises around the world who gave their ideas on the growth of the host countries and themselves as well as their future plans.

According to Marko Walde, Chief Representative of the GIC/AHK in Vietnam, the Vietnamese economy has been growing, while the conclusion of negotiations with the EU on a bilateral free trade agreement has created momentum for the country’s economic expansion.

The signing of the deal will be an evidence for the trade facilitation trend, he added.

Walde said that Vietnam is an important ASEAN partner of the EU and Germany. Amidst the US-China trade tension, enterprises are moving their production facilities to China’s neighbouring countries to avoid tariff measures.

However, shortcomings in the legal corridor for trade and business as well as the shortage of high-quality human resources have been great challenges facing German investors in Vietnam.

The report also gives optimistic comments on prospects of economic growth in the Asia-Pacific region. However, German firms have no longer kept high expectation in the region as the beginning of 2018.

The firms held that the region’s economy will slow down due to the adjustment in interest rate of the US as well as impact of the US-China trade tension.-VNA