Survey: German firms happy in Vietnam

Nearly 70 percent of German companies in Vietnam are pleased with their business results, while more than half of German investors consider increasing their investment in Vietnam next year, the AHK World Business Outlook Survey 2016 has found.

Worker at a German company in Dong Nai Province. (Photo for illustration)

Conducted by the German Industry and Commerce in Vietnam (GIC/AHK Vietnam), the annual survey of business perspectives among German companies operating in Vietnam aims to track and evaluate business development and confidence of German companies in Vietnam.

The survey found that nearly 70 percent of German companies said their business situation was good in Vietnam.

More than half of the polled German companies were positive about the future of Vietnam’s economy and 47 percent expected further economic development in Vietnam.

About 58 percent of respondents had a positive outlook about their future business development, while 54 percent were considering increasing their investment in Vietnam next year.

Fifty-eight percent of respondents said they planned to hire more employees.

Marko Walde, Chief Representative of GIC/AHK Vietnam, said German enterprises were seeking investment opportunities and further investment in Vietnam.

They see Vietnam as an attractive destination, given the establishment of the ASEAN Economic Community, the EU – Vietnam Free Trade Agreement and the TPP, along with other advantages.

According to the survey, German companies are more confident about the Vietnamese economy than China, India and other ASEAN countries.

However, current economic policies, shortages of skilled workers and increased labour costs are among the hindrances to investment expansion by German firms in Vietnam, the survey found.

GIC/AHK Vietnam suggested that Vietnam build a modern and practical vocational training system that meets the demands of companies.

In addition, the Government also needs to support local businesses in improving their competitive capacity so they can compete with rivals from other countries as Vietnam is a member of the ASEAN Economic Community, TPP and other free trade agreements, it said.

The AHK World Business Outlook was conducted by German Chamber Network worldwide.

It gathered feedback from about 3,400 German companies this year, with 23 percent of the German participants in Vietnam from industry and construction sectors, 58 percent from the services field and 19 percent from trading companies.