HCM City (VNA) – German firms have expressedtheir optimism about Vietnam’s economy in both mid-and long terms in a recentsurvey released by the Association of German Chambers of Industry and Commerce(DIHK) on May 12.

According to the survey, 66 percent of respondentssaid Vietnam’s economy will see significant improvements this year, as comparedwith only 46 percent recorded last year.

One third of them held that the economy will recoverin the first half of this year, and 30 percent believed that the recovery willbegin in 2022.

More than half of the firms said their business inVietnam is running smoothly, while only 11 percent have experienced lowerrevenue.

Besides, 47 percent of the enterprises intend toexpand their business in the country and half of them will recruit moreemployees in 2021 and 2022. Notably, 67 percent expect to diversify theirsupply chains by seeking new suppliers, change logistics goods transportation routesor increase their stockpile.

However, the survey unveiled that a shortage ofskilled labourers and declining consumption have remained the biggestchallenges for German firms in Vietnam, with up to 42 percent of them said theyare meeting difficulties in employing high quality personnel, up from 18percent last year.

Other issues regarding economic policy, financialapproach, legal safety and infrastructure, plus border closure, consumptiondecline and the cancellation of exhibitions and trade events due to COVID-19have also significantly affected their business.

The survey outcomes have demonstrated the efficiencyof the Vietnamese Government’s drastic policies and guidelines to fight thepandemic and reboot the national economy.

The Government has created optimal conditions forforeign investors and enterprises to operate in the country.

The implementation of the EU-Vietnam Free TradeAgreement (EVFTA) and the Comprehensive and Progressive Agreement forTrans-Pacific Partnership (CPTPP) is expected to raise the country’s GDP by 3.2percent for 2021-2030./.