Vietnam - Appealing Investment Destination in Asia-Pacific
Vietnam is recognized by German economists as an attractive investment destination and an important partner in the Asia-Pacific supply chain diversification strategy, bolstered by its important advantages gained from the EU - Vietnam Free Trade Agreement (EVFTA), an inclusive, high-quality new-generation pact.
In the recently published German Business Policy for the Asia-Pacific, the Asia-Pacific Committee of German Business (APA) calls on the European Union (EU) to strengthen its presence and trade and investment cooperation in Asia.
According to APA, Europe needs to focus on economic development in the Asia-Pacific region. It needs to draw all attention to this important economic sector and diversify its economic ties with the region through a flexible and assertive foreign economic policy.
Colossal investment strategies in key areas, such as sustainability and innovation, will make Europe a potential partner of the Asia-Pacific region. A comprehensive strategy for the Asia-Pacific region needs a clear roadmap to elevate the relationship commensurate with its growing position in the context of ongoing strategic competition between the United States and China.
APA President Joe Kaeser said this will be an important strategy to elevate the relationship on par with its growing position in the region in the context of ongoing strategic competition between the United States and China.
In addition to China, German businesses need to recognize the strategic and important position of Asia-Pacific markets in the future. The supply chain diversification strategy does not mean relocating production out of China, but this strategy requires Europe to soon establish a comprehensive economic development strategy to access potential markets in this region in the most effective manner. Thus, APA called on the European Union to soon complete a unified, effective and flexible foreign and economic policy for the Asia-Pacific.
While calling on Europe to focus on economic development in the Asia-Pacific region, APA also emphasized that Vietnam is viewed by German economists as an important investment destination in the region and an important partner in the Asia-Pacific supply chain diversification strategy, bolstered by its important advantages gained from the EU - Vietnam Free Trade Agreement (EVFTA), an inclusive, high-quality new-generation pact.
This is also very clearly reflected in a survey on German business confidence in Vietnam released recently by the German Chamber of Commerce and Industry in Vietnam. According to the survey, German businesses assessed that EVFTA and CPTPP will help Vietnam's GDP expand by 3.2% in 2021-2030. Vietnam will become a strategic investment destination for global and regional supply chains which are being restructured and a potential market to attract international corporations.
Being optimistic about the business performance in Vietnam, many German companies said that they will expand investment and recruit more employees in the next 12 months. Specifically, 47% of German companies in Vietnam tended to expand their business; 50% of them intended to recruit more personnel in 2021/2022; more than 40% expected to keep their current level and only less than 10% planned to cut their staff.
In addition to foreign economic policies in the Economic Policy of German Business in the Asia-Pacific, the APA emphasized the importance of focusing on further improving Europe's investment environment. To effectively attract the attention of investors from the Asia-Pacific, Europe needs to boost investment in industries of the future such as innovation and sustainable development.
