Diversifying production and manufacturing is the activity that German companies in Vietnam prioritize the most, with 42% of businesses having this plan.
Based on surveys, the German Chamber of Industry and Commerce in Vietnam (AHK) said that currently, Vietnamese enterprises intend to invest more in business establishments abroad than in the domestic market.
The agency also said that in response to the development of the global economy , many German enterprises and enterprises with close ties continue to expand their business scale in many markets. Among them, Vietnam is currently considered a promising destination, trusted by many German enterprises.
According to the survey, 42% of German companies in Vietnam said that they prioritize diversification of production and manufacturing. This shows the focus on product diversification strategy. In addition, sales and marketing, services, and logistics are also given importance, emphasizing the trend of comprehensive investment.
In the first 10 months of this year, AHK assessed that Germany has taken a strong step in consolidating its presence in Vietnam with 26 investment projects implemented, with a total capital of nearly 221.5 million USD.
According to statistics from the General Department of Vietnam Customs, by the end of March this year, Germany had 443 FDI projects with a total registered capital of 2.36 billion USD, ranking 18th out of 143 countries and territories investing in Vietnam. Most of Germany's projects and investment capital are focused on processing, manufacturing, technical services, information and communication, banking and insurance.
Currently, 26 provinces and cities have received FDI from Germany, mainly Ho Chi Minh City, Hanoi, Binh Duong , Dong Nai. Many leading German corporations (Siemens, Metro, Mercedes-Benz, Deutsche Bank, Allianz, B.Braun, Messer...) have opened facilities and committed to long-term investment in Vietnam.
Along with the advantages, German companies in Vietnam also reported facing many major challenges. Of these, 49% of businesses said that the decline in global demand is a major obstacle; 41% are concerned about the shortage of skilled labor; 37% of businesses highlighted the risk of supply chain disruption. In addition, there are other notable challenges such as economic development policies, energy costs, and financial challenges.
The World Bank's updated report on the morning of November 22 also assessed that Vietnam's FDI attraction activities remain stable in the context of global instability.
Accordingly, cumulative FDI commitments in the first 10 months of the year reached 25.7 billion USD, up 14.7% over the same period last year, mainly due to foreign investors' confidence in Vietnam's stability and openness. Accumulated realized FDI capital reached 18 billion USD, up 3.2% over a year ago. Industrial production continues to be the main sector attracting FDI to Vietnam.
Vnexpress.net
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