Vietnam more attractive investment destination: German business magazine

Illustrative image (Photo: VNA)

Due to China's strict zero-COVID policy and disrupted supply chains, more and more German companies in Asia are looking for alternatives and neighbouring Vietnam has become a new target, the German weekly business news magazine WirtschaftsWoch wrote in an article published on May 29.

In Asia, many German companies are looking at Vietnam as a new location for production.

The article cited Marko Walde, Chief Representative of the German Industry and Commerce in Vietnam, as saying that since Vietnam reopened its borders on March 15, the chamber has been visited almost every week by medium-sized German companies looking for new locations.

Vietnam offers tariff advantages thanks to the Trans-Pacific trade agreement with the US and is the only Asian country, besides Singapore, that has a free trade agreement with the EU.

Internationally active companies are diversifying their supply chains and considering Vietnam as an investment location, the article quoted the Germany Trade & Invest (GTAI) in analysis of the country of 99 million inhabitants.

The GTAI also took Danish toy manufacturer Lego as an example, with the company investing more than 1.2 billion EUR (1.29 billion USD) in a new factory in Vietnam.

VNA