German firms now favor Vietnam over China, India: survey

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Vietnam has become more attractive to foreign investors in recent years. Photo credit: Bloomberg Vietnam has become more attractive to foreign investors in recent years. Photo credit: Bloomberg

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German companies think Vietnam offers more favorable conditions and opportunities to investors than China, India or other Southeast Asian countries, according to a new survey.
“German enterprises are now seeking for investment opportunities and for further investment in Vietnam, because they see Vietnam as an attractive destination,” said Marko Walde, chief representative of the Delegation of German Industry and Commerce in Vietnam. 
According to the World Business Outlook Survey 2016, more than half of German companies in Vietnam were positive about the future of the economy and 70 percent described their business situation in the country as "good."
As for future plans, 54 percent of German investors said they may increase their investment in Vietnam while 58 percent intended to hire more employees. 
However, the survey found some factors that may hold foreign investment back, including shortages in skilled labor and rising wages. 
The delegation suggested "a modern and practical vocational training system that meets the demands of companies in order to create a sustainable advantage to attract investors to Vietnam." 
Vietnam also needs to support its companies so that they can compete with their peers from other countries, especially in the context of the ASEAN Economic Community, the Trans-Pacific Partnership and other free trade agreements, it said in a statement released Tuesday. 
The World Business Outlook Survey is conducted by the German Chamber Network worldwide. This year's edition involved around 3,400 German companies.

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