Worker at a German company in southern Đong Nai Province. Nearly 70 per cent of German companies in Viet Nam are pleased with their business results, while more than half of German investors consider increasing their investment in Viet Nam next year. — Photo thesaigontimes.vn

HCM CITY (Biz Hub) — Nearly 70 per cent of German companies in Viet Nam are pleased with their business results, while more than half of German investors consider increasing their investment in Viet Nam next year, the AHK World Business Outlook Survey 2016 has found.

Conducted by the German Industry and Commerce in Viet Nam (GIC/AHK Viet Nam), the annual survey of business perspectives among German companies operating in Viet Nam aims to track and evaluate business development and confidence of German companies in Viet Nam.

The survey found that nearly 70 per cent of German companies said their business situation was good in Viet Nam.

More than half of the polled German companies were positive about the future of Viet Nam's economy and 47 per cent expected further economic development in Viet Nam.

About 58 per cent of respondents had a positive outlook about their future business development, while 54 per cent were considering increasing their investment in Viet Nam next year.

Fifty-eight per cent of respondents said they planned to hire more employees.

Marko Walde, chief representative of GIC/AHK Viet Nam, said German enterprises were seeking investment opportunities and further investment in Viet Nam.

They see Viet Nam as an attractive destination, given the establishment of the ASEAN Economic Community, the EU – Viet Nam Free Trade Agreement and the TPP, along with other advantages.

According to the survey, German companies are more confident about the Vietnamese economy than China, India and other ASEAN countries.

However, current economic policies, shortages of skilled workers and increased labour costs are among the hindrances to investment expansion by German firms in Viet Nam, the survey found.

GIC/AHK Viet Nam suggested that Viet Nam build a modern and practical vocational training system that meets the demands of companies.

In addition, the Government also needs to support local businesses in improving their competitive capacity so they can compete with rivals from other countries as Viet Nam is a member of the ASEAN Economic Community, TPP and other free trade agreements, it said.

The AHK World Business Outlook was conducted by German Chamber Network worldwide.

It gathered feedback from about 3,400 German companies this year, with 23 per cent of the German participants in Viet Nam from industry and construction sectors, 58 per cent from the services field and 19 per cent from trading companies. — VNS