Nine-tenths of German firms plan to expand in Vietnam: AHK survey

Two-fifths of the respondents also have plans to raise their workforce in the next 12 months, the AHK World Business Outlook Spring 2023–Vietnam Focus found.

Vietnam is expected to see a revival in economic growth in the medium-term despite challenges like inflation, global economic uncertainties and the rising geopolitical influence on supply chains, it found.

Despite challenges such as inflation, uncertainties of the world economy, and the increasing political influence on supply chains, Vietnam is expected to experience a resurgence in its economic growth in the medium-term.

The growth will be fuelled by various factors, including free trade agreements (FTAs), the China Plus One strategy, the global trend of shifting and diversifying manufacturing supply chains towards competitive hubs in Southeast Asia and the inflow of green investments, the report said.

About 500 German companies have invested some $2.9 billion in the Southeast Asian nation so far, creating about 50,000 jobs, Vietnamese media outlets reported.

As of July 20 this year, newly-registered capital, additional investment, capital contribution and share purchase by German investors in Vietnam amounted to nearly $197 million.

AHK suggested Vietnam to further streamline administrative procedures and invest more in infrastructure development, particularly in transport and logistics, to lure more foreign investors.

Fibre2Fashion News Desk (DS)