93% of German businesses still want to invest in Vietnam
Vietnam actively participates in important trade agreements, has advantages in attracting foreign investment, especially German enterprises.
Germany always considers Vietnam as a market with fast development potential and attractive investment attraction. In the first 3 quarters of 2020, Germany has 370 valid FDI projects with a total registered capital of 2 billion USD; ranked 4th among EU member states, after the Netherlands, UK and France; ranked 18th in the total number of countries and territories investing directly in Vietnam.
German businesses believe that the biggest risk they are facing is the high price of raw materials, followed by energy prices and a shortage of skilled labor, the Russia-Ukraine conflict causing negative impacts. economically extreme. Along with supply chain and logistics disruption has led to changes in their international business investment.
When participating in investment in Vietnam, the above concern makes German businesses worry.
According to the survey results of German enterprises in Vietnam, conducted by the global network of German Chambers of Industry and Commerce, up to three-quarters of German businesses believe that the price of raw materials – fuel – materials, energy The shortage of skilled workers will be the biggest risk, challenging the development of German enterprises in Vietnam in the next 12 months.
In Vietnam, according to the Ministry of Construction, in the first quarter of 2022, construction steel prices in Vietnam tend to increase sharply according to the general uptrend of the global steel market. The increase in the price of construction materials causes the price of houses and construction works to increase.
Specifically, from mid-February until now, the domestic construction steel price has started to increase sharply (about 600,000-1.2 million VND/ton). As of mid-March, steel prices increased by 3.5% and 7.5%, respectively, compared with prices in February and January. In early April, construction steel prices have not “cooled down.”
Similarly, in terms of the cement market, despite oversupply, due to the pressure of input material prices such as electricity, packaging, gasoline, especially coal, the price of cement still increased from 30,000-50,000 VND/ton compared to the fourth quarter. 2021 (increasing by 1-3% compared to the fourth quarter of 2021 and increasing by 11-15% over the same period in 2021). The price of these materials is expected to increase in the coming time.
Vietnam also faces the challenge of a shortage of skilled human resources, with a large gap between labor training and recruitment needs. Therefore, it is necessary to have a high-quality, well-trained workforce suitable to practical needs to adapt to the changes and challenges of the domestic and international labor market.
However, although the Vietnamese economy is not outside of the general difficulties of the world economy, according to a survey by the German Chamber of Commerce and Industry in Vietnam, 93% of German businesses still want to invest in Vietnam.
Mr. Marko Walde, Chief Representative of the German Chamber of Industry and Commerce in Vietnam, said that Vietnam, an important factor in the flow of international trade, has the advantage of being among the four ASEAN countries participating in the CPTPP and one of the two countries has an FTA with the EU.
Ngoc Cuong
The Covid-19 pandemic has made most businesses difficult, but there are also businesses that benefit when new consumer business trends appear.
at Blogtuan.info – Source: vietnamnet.vn – Read the original article here
