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AHK World Business Outlook 2019 survey released

Released at: 17:02, 22/06/2019

AHK World Business Outlook 2019 survey released

Photo source: German Industry and Commerce Vietnam

Survey finds workplace skills to be a major concern of German enterprises in Vietnam.

by Minh Do

German Industry and Commerce Vietnam is cooperating with Vietnamese companies to provide vocational training programs for production activities and expects to expand the programs around the country to meet demand, according to Mr. Marko Walde, Chief Representative of German Industry and Commerce Vietnam.

He was speaking at a press conference on June 20 in Hanoi about the results of the AHK World Business Outlook 2019 survey, conducted by a network of German Chambers of Commerce Abroad (AHKs). German companies have invested notably in modern equipment and production lines that require skilled workers, but it is quite difficult to find qualified staff at both the university and vocational level.

German Industry and Commerce Vietnam is working with Vietnamese auto manufacturer VinFast to provide vocational training programs for their production activities, according to Mr. Walde. “VinFast has built its worker training system based on German Industry and Commerce Vietnam’s programs and we believe it will be effective in addressing the shortage of skilled workers in fabrication and assembly,” he said.

Surveyed respondents' concern was how to support domestic businesses in order to enhance their competitiveness and ensure sustainable development, as they are seen as the backbone of Vietnam’s economy. Building and developing domestic support industries and industrial clusters based on local advantages could help create cooperative opportunities for domestic and foreign businesses, to the benefit of both.

Developing a practice-oriented vocational education system would help build a generation of skilled workers with in-depth knowledge and practical and communication skills. This would be a competitive advantage for Vietnam and assure sustainable development in the long term.

Building a fruitful and creative ecosystem for startups as well as providing financial, educational, and environmental assistance would also give domestic startups and small and medium-sized enterprises (SMEs) the ability to access both foreign investors and modern technology.

Respondents forecast that Vietnam’s economy will again grow 7 per cent this year thanks to exports and the development of the manufacturing and processing and service sectors, as well as the country’s global integration process.

While 52 per cent had a positive view of local economic development in 2018, 67 per cent expect an improvement. Half of companies surveyed (51 per cent) claim conditions regarding the economic policy framework are the greatest risk to their businesses in Vietnam, while 28 per cent are wary of disadvantages from trade barriers.

The conclusion of the Regional Comprehensive Economic Partnership (RCEP), domestic and international demand, and political stability have a high level of influence on German engagement in Vietnam in terms of market supply and demand as well as the economic environment.

Thirty per cent of respondents are in industry and construction, 27 per cent in the service sector, and 43 per cent in retail trade. Small companies with less than 100 employees accounted for 42 per cent of respondents, while 21 per cent employ 100 to 1,000 employees. Large companies with more than 1,000 employees accounted for 37 per cent.

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