Illustrative image. (Photo: moit.gov.vn) Hanoi (VNA) – As many as 55 percent of surveyed German enterprises inVietnam expressed their confidence in positive development next year, according to the AHK World Business Outlook 2021 released bythe Delegate of German Commerce and Industry in Vietnam.
Althoughthe rate of German firms that are optimistic about Vietnam's economic recovery was 33 percent, lower than the figure at the beginning of this year, 55percent of German firms expected their positive development in 2022.
Up to 83 percent of the respondents said they would continue to invest inexpanding production or upgrading their facilities in the next 12 months. Thirty-three percent of the respondents are planning to recruit more workers to serveproduction and business in Vietnam.
Travelrestrictions and issues relating to supply chains and logistics were majorchallenges to German companies’ growth, according to the report.
The AHKWorld Business Outlook is an annual survey conducted by the German Chambers of Commerce and Industry Abroad with the participation ofGerman enterprises and investors overseas. This year, it received feedback frommore than 3,200 German companies and subsidiaries worldwide, including Vietnam.
Asurvey released by the DIHK on May 12 showed that 66 percent of respondentssaid Vietnam’s economy will see significant improvements this year, as comparedwith only 46 percent recorded last year.
Onethird of them held that the economy will recover in the first half of thisyear, and 30 percent believed that the recovery will begin in 2022. More than half of the firms said their business in Vietnam is running smoothly,while only 11 percent have experienced lower revenue.
Besides, 47 percent of the enterprises intend to expand their business in thecountry and half of them will recruit more employees in 2021 and 2022. Notably,67 percent expect to diversify their supply chains by seeking new suppliers,change logistics goods transportation routes or increase their stockpile.
However, the survey pointed out that a shortage of skilled labourers anddeclining consumption have remained the biggest challenges for German firms inVietnam, with up to 42 percent of them saying they are meeting difficulties inemploying high quality personnel, up from 18 percent last year.
✃ Other issues regarding economic policy, financial approach, legal safetyand infrastructure, plus border closure, consumption decline and thecancellation of exhibitions and trade events due to COVID-19 have also significantlyaffected their business./.
