German firms have expressed their optimism about Vietnam’s economy in both mid-and long terms in a recent survey released by the Association of German Chambers of Industry and Commerce (DIHK) on May 12.
Illustrative image (Photo: VNA) German firms have expressed
their optimism about Vietnam’s economy in both mid-and long terms in a recent
survey released by the Association of German Chambers of Industry and Commerce
(DIHK) on May 12.
According to the survey, 66 percent of respondents
said Vietnam’s economy will see significant improvements this year, as compared
with only 46 percent recorded last year.
One third of them held that the economy will recover
in the first half of this year, and 30 percent believed that the recovery will
begin in 2022.
More than half of the firms said their business in
Vietnam is running smoothly, while only 11 percent have experienced lower
revenue.
Besides, 47 percent of the enterprises intend to
expand their business in the country and half of them will recruit more
employees in 2021 and 2022. Notably, 67 percent expect to diversify their
supply chains by seeking new suppliers, change logistics goods transportation routes
or increase their stockpile.
However, the survey unveiled that a shortage of
skilled labourers and declining consumption have remained the biggest
challenges for German firms in Vietnam, with up to 42 percent of them said they
are meeting difficulties in employing high quality personnel, up from 18
percent 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 significantly affected their business.
The survey outcomes have demonstrated the efficiency
of the Vietnamese Government’s drastic policies and guidelines to fight the
pandemic and reboot the national economy.
The Government has created optimal conditions for
foreign investors and enterprises to operate in the country.
The implementation of the EU-Vietnam Free Trade
Agreement (EVFTA) and the Comprehensive and Progressive Agreement for
Trans-Pacific Partnership (CPTPP) is expected to raise the country’s GDP by 3.2
percent for 2021-2030./.