Manufacturing is top investment priority among German firms in Vietnam
The country remains a magnet for companies diversifying their operations beyond China.
About 42% of German companies operating in Vietnam consider manufacturing and supply chain diversification as the utmost priority for their investment strategies in the country, an industry survey showed.
Sales and marketing were the second highest area for investment consideration among German firms, followed by services (35%) and logistics (31%), based on the country-specific results of the AHK World Business Outlook Fall 2023 report.
The survey showed half of the companies agreed that the country’s growth potential overall can serve as a pivotal consideration for their strategies, while they see localisation (43%) playing an important role in investment decision-making.
Vietnam has been a particularly attractive location for German firms adopting a China plus one strategy, especially those looking for new green investments.
The study showed 26 foreign direct investment projects have flown from Germany to Vietnam over the past 10 months, which the study said is a testament to the country’s reputation as a “promising destination” for diversification in Asia.
“The Vietnamese market stands ready to welcome and support such ventures, offering a platform for growth, diversification, and sustainable business practices,” it said.
The survey polled 3,600 German businesses from around the world including those in Vietnam. It was conducted by the German Chambers of Commerce Abroad from 25 September to 20 October.