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Vietnam more favorite among German investors than China, India and other Asian peers

By Dam Tuan   June 1, 2016 | 03:14 am PT
German companies in Vietnam are expressing more confidence in the economy and business development than those in China, other ASEAN countries, and India, a survey has shown.

46 percent of German businesses expect a better situation of Vietnam's economic development comparing to China (16 percent), India (45 percent), Thailand (29 percent) and Indonesia (35 percent), according to the AHK World Business Outlook released by German Chamber Network worldwide on May 31.

The AHK World Business Outlook Survey 2016 also stated nearly 70 percent of German firms operating in Vietnam said they were satisfied with their general business results in Vietnam while only 42 percent of them in China or 51 percent in India and 43 percent in Thailand expressed satisfactory with the repsective countries.

In term of increasing total investment capital, only German enterprises in Thailand (56 percent) have higher rate than Vietnam's (54 percent) while China, India and Indonesia are lower with 27 percent, 37 percent and 42 percent, respectively.

Moreover, 54 percent of German companies operating in Vietnam said they will spend more in the country, while 58 percent plan to hire more people for 2017.


Representatives of German enterprises in Vietnam at a job fair organized by German Industry and Commerce Vietnam. Photo by

58 percent of the respondents perceive their business outlook as “positive” while many German investors plan to expand their investments and recruit more staff in Vietnam with 58 percent having recruitment plans for 2017 comparing to China (32 percent), India (42 percent) and Thailand (54 percent).

Basically, German enterprises are now seeking for investment opportunities and for further investment in Vietnam, because they see Vietnam as an attractive destination in term of all integration encourages of Vietnam’s government (EU-VN FTA, TPP) and other location advantages of Vietnam,” the chief representative of German Industry and Commerce Vietnam, Marko Walde, said.

Indicators show that Vietnam’s investment environment is a safe, sustainable and potential investment destination for German firms.Firms from Europe's leading economy have also seen noticeable improvements in infrastructure and material and energy costs in Vietnam.

However, they also pointed out some of the problems they are facing, including economic policies (46 percent), the lack of skilled workers (42 percent) and labor cost (35 percent), which are the main factors stopping them from expanding in Vietnam.

The purpose of the survey is to show German businesses' confidence, outlook and expectations in ASEAN, China and India for the next year, in comparison with the previous year.The survey gathers the feedback from about 3.400 German companies this year. These are either members of the Chambers Abroad (AHKs) or connected to the German Delegations or Representative Offices.

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