The AHK publicises a report on German firms worldwide (Photo: VietnamPlus)

 

Hanoi (VNA) – Compared to other regional countries, Vietnam has received special attention from German businesses and become a magnet for investment in the medium term.

The AHK World Business Outlook (AHK WBO) was conducted by the Association of German Chambers of Commerce and Industry (AHK), with the participation of German entrepreneurs in Vietnam.

It showed that Vietnam is a top investment destination for German businesses with high expectations of economic development in the medium term.

German enterprises are optimistic about their businesses as well as the prospects for growth in the next year, despite the instability of the global economy due to trade tension, the outlook said.

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Representatives of as many as 77 percent of German businesses in Vietnam said their business is better this year, much higher than the average of other Southeast Asian countries of 61 percent.

Furthermore, 72 percent of the firms were optimistic about their development in the next 12 months.

With many achievements in economy, investment and social development in 2018, Vietnam received confidence from German enterprises in economic development for the next 12 months, with 67 percent of firms optimistic.

The outlook also revealed that 55 percent of the German companies in Vietnam intend to expand their activities in the country, higher than the average of 44 percent of Southeast Asian nations and the 52 percent recorded in 2018.

Henceforth, compared to other countries in the region, Vietnam has received attention of German businesses and become an investment attraction, as 59 percent of the firms expect to hire more workers in 2019 and 2020.

Chief Representative of AHK Vietnam Marko Walde speaks at the event (Photo: VietnamPlus)

 

At the event, Chief Representative of AHK Vietnam Marko Walde said previous German investment projects in Vietnam focused on garment-textiles and the iron and steel industry. Recently, there has been an increase of firms investing in electricity and the electronics sector.

Chief Representative of AHK Vietnam Marko Walde said the Vietnamese Government has presented appropriate foreign investment attraction policies.

He expressed his hope that Vietnam will pay more attention to human resources training to meet the needs of German enterprises, and added that Vietnamese firms need to exert effort into improving their competitiveness.

Those factors will enhance the confidence of foreign businesses, especially German firms, to do business in the long term in Vietnam, the official noted.

The businesses do not want to build a factory that imports parts, then produces and exports. They want to set up factories serving sustainable business development, creating partnerships with Vietnamese firms and a competitive environment in Vietnam, Walde said.

He said other important factors for the development of businesses from the perspective of German enterprises are domestic market demand, the stability of the political system, the source of high-quality labour, and regional demand.

Last year was a successful one for Vietnam’s economy with gross domestic product (GDP) growth of 7.1 percent. 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 more than 7 billion USD.

The Vietnamese Government is willing to support foreign investors to do business in the country.

Vietnam’s participation in free trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA) has also bolstered the country’s economy.

The conclusion of negotiations for the EVFTA is expected by German businesses to help improve the legal framework and economic policies in Vietnam.–VNA