German firms optimistic about Vietnamese economy
German firms optimistic about Vietnamese economy
German firms have expressed their optimism about Viet Nam's economy in both the mid and long-term in a survey released by the Association of German Chambers of Industry and Commerce (DIHK) on Thursday.
According to the survey, 66 per cent of respondents said the economy will see significant improvements this year, compared with only 46 per cent last year.
A third of them said the economy will recover in the first half of this year, and 30 per cent believed the recovery will begin in 2022.
More than half of the firms said their business in Viet Nam is running smoothly, while only 11 per cent have experienced lower revenue.
Besides, 47 per cent of the enterprises intend to expand their business in the country and half will recruit more employees in 2021 and 2022. Notably, 67 per cent expect to diversify their supply chains by seeking new suppliers, change logistics goods transportation routes or increase their stockpiles.
However, the survey found that a shortage of skilled labourers and declining consumption have remained the biggest challenges for German firms in Viet Nam, as up to 42 per cent of them said they face difficulties in employing skilled workers, up from 18 per cent 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 affected their business.
