Ger­man firms up­beat about VN mar­ket

Viet Nam News - - Business -

HCM CITY — Ger­man busi­nesses are pos­i­tive on Vieät Nam’s eco­nomic out­look and have high ex­pec­ta­tions for next year in terms of sales, pro­duc­tion, hu­man re­source de­mand, and cap­i­tal ex­pen­di­ture, ac­cord­ing to a sur­vey by the Ger­man ASEAN Cham­ber Net­work.

Seventy per cent of Ger­man com­pa­nies in Vieät Nam con­firmed pos­i­tive mar­ket devel­op­ment over the past year and a good cur­rent sit­u­a­tion lead­ing to a more pos­i­tive out­look than in 2013 on the over­all econ­omy, cap­i­tal ex­pen­di­ture, and pri­vate and busi­ness con­sump­tion.

Around 50 per cent have done bet­ter com­pared to last year and ex­pect to con­tinue this strong run, es­pe­cially in sales where 56 per cent of the re­spon­dents fore­cast an in­crease over the next 12 months.

Sixty per cent of the com­pa­nies in­tend to in­crease their work­force in 2015 and keep their cap­i­tal ex­pen­di­ture high.

The sur­vey ques­tions fo­cused on busi­ness con­fi­dence, growth ex­pec­ta­tions, in­vest­ment, and com- pany in­di­ca­tors, com­par­ing the cur­rent sit­u­a­tion with last year and seek­ing fore­casts for the year ahead.

Re­spon­dents were also asked about their views of the cur­rent over­all econ­omy in their re­spec­tive coun­tries.

The Viet­namese re­spon­dents rep­re­sented in­dus­try (47 per cent), ser­vices (35 per cent), trad­ing (9 per cent), con­sul­tancy (6 per cent) and test­ing cer­ti­fi­ca­tion (3 per cent).

Lack of skilled labour, poli­cies that are not con­duc­tive for busi­ness, and bu­reau­cracy re­main the most sig­nif­i­cant hur­dles for them.

Other sig­nif­i­cant fac­tors are im­port trade bar­ri­ers (63 per cent), cor­rup­tion (63 per cent), in­fla­tion ( 50 per cent), and tax bur­den (46 per cent).

Qual­i­fied tech­ni­cal per­son­nel are dif­fi­cult to find and al­most all the firms of­fer train­ing to their staff. Seventy per cent have great dif­fi­culty in find­ing qual­i­fied em­ploy­ees with univer­sity de­grees and 46 per cent with find­ing work­ers with vo­ca­tional train­ing. —

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