Viet Nam Emerges as Potential Investment Destination for German Companies

3:11:40 PM | 11/22/2023

German enterprises have taken a bold step in further solidifying its presence in Viet Nam over the last 10 months of this year.

This is one of the key findings of the AHK World Business Outlook Fall 2023 survey unveiled on November 21, providing valuable insights into the perspectives of German investors worldwide and in Viet Nam.

The survey, conducted from September 25-October 20, focused on assessing the business situation, expectations, investment activities, and associated risks faced by German companies operating in Viet Nam.

According to the survey, a total of 26 foreign direct investment (FDI) projects have been initiated, representing a combined investment of nearly US$221.5 million.

This not only reflects the confidence of German companies in the Vietnamese market but also positions Viet Nam as a promising destination for those seeking to diversify their interests in Asia.

As Viet Nam continues to showcase its potential as a robust and strategic investment location, the survey results indicate a positive trajectory for German businesses looking to implement the "China plus one" strategy, with an emphasis on new green investments.

The Vietnamese market stands ready to welcome and support such ventures, offering a platform for growth, diversification, and sustainable business practices.

When it comes to investment plans, the survey reveals that 42 percent of German companies in Viet Nam prioritize diversifying production and manufacturing, indicating a strategic focus on varied production capabilities.

Sales and marketing (41 percent), services (35 percent), and logistics (31 percent) closely follow, underscoring a comprehensive approach to business development.

The survey emphasizes the influence of factors shaping local investments, with 50 percent recognizing the growth potential of the Vietnamese market as a pivotal consideration.

Customer proximity/localization follows closely at 43 percent, highlighting a keen interest in aligning strategies with local dynamics. Skilled labor availability is also crucial, with 37 percent emphasizing the essential role of a qualified workforce.

Source: VGP