German companies have high expectations of Vietnam market: survey
German businesses in Vietnam are more confident about growth and have positive expectations about the country’s economic growth than they did in autumn 2022, according to a biannual survey.
Infographics show German businesses in Vietnam are more confident about growth now than they did last autumn. (Infographics courtesy of AHK Vietnam)
HCM City (VNS/VNA) - German businesses in Vietnam are moreconfident about growth and have positive expectations about the country’seconomic growth than they did in autumn 2022, according to a biannualsurvey.
The German Chambers of Commerce Abroad (AHKs) survey found that 91%of German companies intend to expand in Vietnam and 40% plan to increase theirworkforce in the next 12 months.
Thanks to the prompt implementation of government action plans andstable macroeconomic conditions, Vietnam has maintained positive economicgrowth, and so German companies are increasingly optimistic.
But their short-term expectations remain cautious due to thegeo-political challenges such as inflation and the increasing politicalinfluence on supply chains.
Eighty eight % of the survey participants are confident abouttheir business situation in Vietnam (satisfactory or good), and nearly halfexpect economic growth to remain steady, while 21% expect it to speed up.
The risks they identified due to global economic fluctuationsinclude low demand (51%), economic policy framework (46%), shortage of skilledworkforce (34%), and potential disruptions to the supply chain (28%).
They said long-term geopolitical challenges includeinflation and monetary policy (41%), fragmentation of the globaleconomy (41%) and increase in political influences on supply chains (40%).
Nevertheless, Vietnam is expected to see a resurgence ineconomic growth in the medium term fueled by factors like free tradeagreements, the global trend of shifting and diversifying manufacturing supplychains towards competitive hubs in Southeast Asia and the inflows of greeninvestments.
Half of German companies in Vietnam prioritiseddiversifying their supply chains, with Vietnam being their top choice,followed by Malaysia and Thailand.
The survey was done by the AHKs by polling more than 5,100 Germancompanies world-wide in March and April. /.
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Infographics show German businesses in Vietnam are more confident about growth now than they did last autumn. (Infographics courtesy of AHK Vietnam) 
