AHK World Business Outlook Index 2017

01.09.17

VIETNAM - Positive Outlook in medium term

April 2017, the Association of German Chambers of Industry and Commerce (DIHK) in Berlin in collaboration with AHKs worldwide conducted an AHK World Business Outlook survey to evaluation on the business climate among German companies globally. Part of the survey was focusing on the ASEAN region and the feedbacks as well as the expectations of German companies there are positive. 

German companies see Vietnam as an exciting and promising market. Their businesses in Vietnam are quite good and 75% of the participants expected a better business trend for the coming 12 months. They are all excited about prospects for Vietnam and plan to increase their staff in 2017 as well as invest more in Vietnam or even expand their presence in Vietnam. Vietnam's competitive wages are a major draw for manufacturers seeking a low-cost base. However, skills shortages can be a problem and for those German investors in Vietnam it could be the most challenging factor for them.  

Another key factor driving the attractiveness of Vietnam for investment is their engagement in global economy - Free Trade Agreements. ASEAN market size and the free trade area of ASEAN bring a lot of potential, especially in term of middle class spending.  

German investors need qualified employees with technical background and in Vietnam there is still a lack of praxis-oriented vocational training in Vietnam.  

German and EU image still the factors that attract the Vietnamese consumers. German and EU products are viewed as qualified and safe ones. 

Details on the result, please click HERE