, Vietnam
Photo by Ian Taylor on Unsplash

Manufacturing is top investment priority among German firms in Vietnam

Vietnam remains a magnet for companies diversifying their operations beyond China.

About 42% of German companies operating in the country 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.

Join Investment Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!