More than half of German businesses wish to expand their business in Vietnam over the next 12 months and 52% want to hire more employees for their factories.
According to a survey conducted by the Network of German Chambers of Commerce Abroad (AHKs), through collecting feedback from over 3,500 German companies worldwide.
“The Vietnamese economy will continue to grow and the EU-Vietnam Free Trade Agreement (EVFTA) is expected to further boost Vietnam’s growth” said Mr. Marko Walde, Chief representative of GIC/AHK Vietnam.
According to a report on NDO, a state-owned media channel, Vietnam has been considered as an important partner of Europe and Germany in ASEAN. In addition, due to the US-China trade tension, foreign companies are looking to relocate their manufacturing to China’s neighboring countries in order to avoid tax increases arising from the dispute.
However, the legal framework for investment and business and a lack of high-quality manpower in Vietnam are major challenges for German investors.
The survey also notes that, despite decent growth in Asia, the expectations of German businesses are not as high as in early 2018.
German companies expect the region’s economic growth to slow down as a result of the US rate increases and the impacts of the US-China trade dispute.
Full article can be found at nhandan.org.vn