German Businesses Confident about Growth Prospect in Vietnam

10:00:16 AM | 11/10/2021

Economic expectation 

The challenges for German companies in Vietnam are numerous more than a year and a half after the start of the COVID-19 pandemic. Most recently, the economic recovery has lost pace: Only 33 percent of German companies surveyed in Vietnam still expect the economy in Vietnam to develop better over the next twelve months. That expectations are more subdued than they were in spring 2021. German companies in other ASEAN countries such as Malaysia, Singapore and Thailand have also significantly fewer positive expectations than they did at the beginning of 2021.  

Business outlook 

In terms of their own businesses, however, companies in Vietnam are proving resilience. They expect a further revival of their own activities despite the cooling economy. They are confident about the business development in the coming twelve months. 55 percent of German companies in Vietnam expect their own businesses to improve. 83 percent of survey participants intend to invest further in their activities in Vietnam and 33 percent assume an increase in employment in the upcoming 12 months.  


However, given the existing challenges posed by the coronavirus pandemic, companies are on a rocky road. Travel restrictions and problems in the supply chains and logistics are preventing smooth business operations and an overall self-sustaining, investment-driven upturn in international business.  

In this context, further consequences that affected the German businesses in Vietnam are the cancellation of orders and the decrease in demand of goods and services. Irrespective of the immediate effects of the coronavirus pandemic, economic policies,  raw material prices and the shortage of skilled workers currently represent the top 3 business risks for German companies in Vietnam.   

T.H (Vietnam Business Forum)