Infographics show German businesses in Vietnam are more confident about growth now than they did in the autumn of 2022. (Infographics courtesy of AHK Vietnam)

The German Chambers of Commerce Abroad (AHKs) survey found that 91% of German companies intend to expand in Vietnam and 40% plan to increase their workforce in the next 12 months.

But their short-term expectations remain cautious due to the geo-political challenges such as inflation and the increasing political influence on supply chains.

88% of respondents are confident about their business situation in Vietnam and nearly half expect economic growth to remain steady, while 21% expect it to speed up. 

Vietnam is expected to see a resurgence in economic growth in the medium term fueled by factors like free trade agreements, the global trend of shifting and diversifying manufacturing supply chains towards competitive hubs in Southeast Asia and the inflows of green investments. 

Half of German companies in Vietnam prioritised diversifying their supply chains, with Vietnam being their top choice, followed by Malaysia and Thailand.