German firms optimistic about Vietnam’s economy
German firms optimistic about Vietnam’s economy
German firms have expressed their optimism about Vietnam’s economy in both mid-and long terms in a recent survey released by the Association of German Chambers of Industry and Commerce (DIHK) on May 12.
Illustrative image (Photo: VNA)
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According to the survey, 66 percent of respondents said Vietnam’s economy will see significant improvements this year, as compared with only 46 percent recorded last year.
One third of them held that the economy will recover in the first half of this year, 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 the country 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 unveiled that a shortage of skilled labourers and declining consumption have remained the biggest challenges for German firms in Vietnam, with up to 42 percent of them said they are meeting difficulties in employing high quality personnel, up from 18 percent last year.
Other issues regarding economic policy, financial approach, legal safety and infrastructure, plus border closure, consumption decline and the cancellation of exhibitions and trade events due to COVID-19 have also significantly affected their business.
The survey outcomes have demonstrated the efficiency of the Vietnamese Government’s drastic policies and guidelines to fight the pandemic and reboot the national economy.
The Government has created optimal conditions for foreign investors and enterprises to operate in the country.
The implementation of the EU-Vietnam Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is expected to raise the country’s GDP by 3.2 percent for 2021-2030.
