Footwear production for exporting to European markets (Photo: Tran Viet/ VNA)

Vietnam was one of the few Asian countries that did not experience an economic contraction during the coronavirus pandemic in 2020 and 2021, it said. This year, Vietnam’s GDP is expected to grow 5.5%, according to the World Bank. German automotive supplier Brose, which has 11 factories in China, is currently deciding between Thailand and Vietnam for a new production location.

Daniel Müller, a manager with the German Asia-Pacific Business Association, was quoted as saying, "It currently looks as if, in particular, medium-sized companies are increasingly striving to enter the Vietnam market.”

Vietnam has become a more attractive destination for investors, Raphael Mok, head of Asia Country Risk at Fitch Solutions, told DW.