In 2024, German investment in Vietnam reached a record high, demonstrating the increasingly strong cooperative relationship between the two countries, with more than 530 German enterprises operating, with a total capital of 3.6 billion USD.
In 2024, German investment in Vietnam reached a record high, demonstrating the increasingly strong cooperative relationship between the two countries, with more than 530 German enterprises operating, with a total capital of 3.6 billion USD.
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| Ziehl-Abegg, Germany's leading ventilation fan manufacturer, has opened a $20 million manufacturing plant in Dong Nai. |
The global economy continues to grow slowly, challengingly and uncertainly, but last year, investment activities of German enterprises in Vietnam remained vibrant, demonstrating German enterprises' optimism about Vietnam's investment and business environment.
This is the content stated in the World Business Outlook Report Autumn 2024 published by the German Chamber of Commerce and Industry in Vietnam (AHK Vietnam).
The AHK World Business Outlook Fall 2024 survey highlights German investors' confidence in Vietnam's business performance and strong macroeconomic development, reinforcing Vietnam's position as a top investment destination.
German businesses plan to increase investment
According to the survey, 81% of German businesses expressed satisfaction with current operations, 50% expect business growth, 35% plan to increase investment in Vietnam (up from 24% in spring 2024), and 35% forecast that the Vietnamese economy will grow in the next 12 months.
In addition, 54% of businesses believe in Vietnam's stable growth rate, 54% plan to maintain the same workforce size, and 35% plan to recruit more staff in the coming year.
"In 2024, German investment in Vietnam reached a record high, demonstrating the increasingly strong cooperation between the two countries. With more than 530 German companies operating in Vietnam, the country continues to be a key market in Germany's global expansion strategy," the report said.
To date, German businesses have invested $3.6 billion, spanning a wide range of sectors such as manufacturing, high technology, logistics, and renewable energy.
Notably, Ziehl-Abegg, the world's leading supplier of ventilation technology, opened a $20 million manufacturing plant in Dong Nai, playing an important role in the company's global supply chain.
Kärcher, a company known for its innovative cleaning solutions, has also established a manufacturing plant in Quang Nam, worth more than VND500 billion, to meet the growing demand for environmentally friendly products in the Asian market.
In addition, Pearl Polyurethane Systems has also opened a new factory in Long Thanh, contributing to the 1.2 billion USD FDI figure for Dong Nai, in the first 9 months of 2024 alone.
In addition, DIGI-TEXX Vietnam's operations center in Hau Giang, which opened last August, has recruited more than 900 local workers, further boosting the economy of the Mekong Delta region.
Referring to risks and challenges, German businesses said that in the Vietnamese market, competitive factors focus on increasing input material costs (47%), fierce competition from local businesses (33%), and from competitors from third markets (26%).
But despite the challenges, German businesses still see great growth potential in the Vietnamese market, with more than half (53%) of surveyed businesses seeing a positive competitive position over the past five years.
The report stated: "Vietnam's stable economic growth and strategic role as a manufacturing and export hub help German businesses diversify their supply chains and minimize risks in the context of global uncertainty."
Notably, Vietnam's strategy focusing on renewable energy and sustainable development is in line with Germany's strengths in green technology, opening up great opportunities for innovation and cooperation.
By addressing challenges such as infrastructure shortages and local competition, German businesses can strengthen their presence in Vietnam and take advantage of the dynamic economic dynamics to achieve sustainable growth.
The AHK World Business Outlook is based on an annual survey by the Association of German Chambers of Industry and Commerce (DIHK) with the participation of member companies and investors of the German Chambers of Commerce Abroad, Delegations and Representative Offices (AHK).
The survey collected responses from more than 3,500 German companies from all over the world as well as their business partners globally. With the active participation of German companies in Vietnam and around the world, AHK WBO is highly appreciated by economic planners, business leaders, press agencies and experts and is considered a measure of German business confidence in Vietnam, in the region and in the world.
The survey results will be a guideline to assess the development situation of German enterprises, the development trends of German enterprises in the next 12 months, investment plans, recruitment plans as well as the expectations of German investors themselves for the macroeconomic development of Vietnam.
Source: https://baodautu.vn/nam-2024-von-dau-tu-tu-duc-vao-viet-nam-cao-ky-luc-d232195.html
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