70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Trade - Service
German businesses expect Vietnam economic recovery by 2022: DIHK
Ngoc Thuy 10:12, 2021/05/13
German business leaders in Vietnam maintain positive view with the economic expectation while looking forward to a recovered year of 2021 and 2022.

German businesses show optimism about Vietnam’s economy in the medium term and look forward to its recovery by 2022.

 Inside Vinfast's factory. Photo: Pham Hung

The Association of German Chambers of Commerce and Industry (DIHK) revealed sentiment of German businesses in its world business outlook survey with Vietnam in focus, released on May 12.

According to the survey, while 46% had a positive view of the local economic development in 2020, 66% expects a significant improvement in 2021. One-third of survey participants think that the economy of Vietnam will recover in the first half of this year, and 30% says that the recovery will happen next year, in 2022.

“Vietnam will become a strategic investment destination in the process of restructuring the global and regional supply chain, a potential domestic market to attract international corporations,” stated the DIHK.

In this regard, “FDI enterprises, especially German businesses also show optimism about Vietnam's economy in the medium and long term. German business leaders maintain positive view with the economic expectation while looking forward to a recovered year of 2021 and 2022,” it noted.

For the upcoming 12 months, 55% rate their current business situation in Vietnam as good and 11% as poor. This poses a stark contrast with last year, as only 33% had a positive view of their situation in Vietnam.


Another positive note is that 47% of German companies in Vietnam intend to expand their activities in Vietnam and 50% assume an increase in employment in 2021/2022.

However, DIHK also revealed that “lack of qualified workers and low demand [both at 42%] are the greatest business challenges for German investors in Vietnam,” followed by economic policy, financing, legal certainty and infrastructure.

To ensure sustainable supply chain, 67% of German participants would diversify their supply chain by finding additional suppliers, changing in delivery routes or increasing their inventory.

Despite Covid-19 pandemic, the Deutsche Bank forecast Vietnam to achieve a growth rate of 7.5% this year, which came on the back of a positive growth of 2.9% last year amid severe Covid-19 impacts.  

Meanwhile, a World Bank study suggested the simultaneous implementation of the EVFTA and CPTPP would help Vietnam's GDP increase by up to 3.2% in the decade 2021-2030.

Since 2015, the world business outlook survey conducted by the network of German Chambers of Commerce Abroad (AHKs) encompasses the feedback from more than 4,500 German companies, branches and subsidiaries worldwide and in Vietnam as well as international companies with close links to Germany.

As such, it is widely seen as a key indicator of German business situation, business expectation as well as economic expectations.

TAG: Vietnam economic recovery nCoV pandemic covid-19 AHK Germany German businesses DIHK CPTPP EVFTA
Other news
08:16, 2024/02/22
Vietnam’s fruit exports gain momentum in early 2024
The export turnover is forecast to reach a record high of US$6.5 billion this year.
15:11, 2024/02/21
Vn-Index towards 1,300 in 2024: SSI
This is expected to be a year of significant volatility, with a strong recovery possibly following deep correction.
20:10, 2024/02/10
Hanoi public transport poised for breakthrough
With good vehicle quality and services, electric buses have made many passengers willing to switch from motorcycles and cars to buses.
21:01, 2024/02/08
Positive outlook for Vietnam’s consumer spending in 2024: Fitch Solutions
Vietnamese household spending is anticipated to exhibit robust growth throughout 2024, as real economic expansion resumes its more stable trajectory.
22:01, 2024/02/01
Hanoi plans over 60 trade promotion events this year
This year's trade promotion activities will be based on the principle of diversification and flexibility to expand into new export markets and make effective use of free trade agreements.
14:39, 2024/02/01
US plans to conclude the review of Vietnam’s non-market economy status in summer
This is a matter of great concern for both countries' leadership.