German investors shift attention to Vietnam
German businesses are seeking new investment opportunities in Vietnam, an entrepreneur told reporters from Dau tu (Investment) newspaper.
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The newspaper quoted Marko Walde, chief representative of German Industry and Commerce Vietnam (GIC/AHK Vietnam) as saying that German firms noticed the increasing attractiveness of Vietnam thanks to the establishment of the ASEAN Community and the country’s signing of important free trade deals, not to mention its existing advantages.
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According to the German Embassy in Hanoi, many major German companies, which are operating in various fields such as automobile, energy and industrial machinery in Vietnam, plan to expand their presence in Vietnam to take advantage of the improved investment climate and signed free trade agreements (FTAs).
For example, Terra Wood, a company specialising in green energy solutions, has proposed two projects on wind and solar power with a total investment of US$400 million and combined capacity of 300 MW in the central province of Quang Ngai.
Some sources revealed that Marquardt Group will arrive in the central city of Danang next month to discuss with municipal authorities the production of hi-tech automobile equipment and components. The project would have an investment of about US$39-US$50 million and generate jobs for some 500-600 local workers.
Vietnam will enjoy big benefits from the Vietnam-EU Free Trade Agreement (EVFTA) and the Trans-Pacific Partnership (TPP) agreement when they come into force, he said, adding that Siemens wants to get involved in thermal power and transport projects in the market, for example, the metro No.2 in Ho Chi Minh City.
According to a recent survey conducted by GIC/AHK Vietnam, more than 50% of German businesses said they are optimistic about the economic development prospects in Vietnam, while 47% of respondents expressed their confidence in the country’s economic growth next year.
As many as 70% of German enterprises said they are satisfied with their business outcomes in Vietnam while 58% are confident in future revenue increase.
In particular, 54% of respondents confirmed that they will increase investment capital in Vietnam and 58% have recruitment plans in 2017.
Close to 300 German businesses are operating in Vietnam with 268 valid projects worth US$1.36 billion.
