Plentiful Opportunities for Vietnam - Germany Cooperation

Speaking at the forum, Deputy Prime Minister Hoang Trung Hai said Vietnam and Germany had a good cooperation relationship and the two countries lifted it to strategic partnership during Markel’s visit. This was an opportunity to promote bilateral relations more strongly, deeply, comprehensively and effectively on the basis of mutual benefit.

 

Germany is always the largest EU trader partner of Vietnam. In 2010, two-way trade turnover reached US$4.1 billion, equal to the bilateral trade revenues of Vietnam with many other EU countries combined. Germany imports Vietnam’s advantageous goods like apparel, foods, coffee and tobacco while exporting machinery and technologies to Vietnam. Importantly, the bilateral trade created a lot of jobs for people in the two nations. In investment cooperation, Vietnam is considered a fertile ground for German entrepreneurs to do business, particularly in the high-tech industry. More than 200 German companies are doing business effectively in Vietnam, including the giants Siemens, Metro Cash & Carry, and Deutsche Bank. However, current outcomes are below the potential of the two countries, especially very modest of Germany in Vietnam. As of end-September 2011, Germany had 167 projects with total registered capital of US$850 million, ranking fifth among EU countries and 24^th out of 92 countries and territories with investment in Vietnam.

 

In 2011, Vietnam has steadily withstood economic difficulties in stabilising foreign exchange rates, increasing foreign reserves and curbing inflation. In the first nine months of 2011, the country achieved economic growth of 5.76 percent and the total amount of disbursed FDI capital reached US$8.2 billion. Together with these impressive figures, it is stepping up intensive and extensive reform and international integration and making itself a more attractive investment environment. In 2011 - 2020, it will focus on some major targets: enhancing growth quality and effectiveness, sustainable development, less carbon economic construction, technological transfer encouragement and high-tech human resource development. Deputy Prime Minister Hoang Trung Hai hoped German investors and businesses would choose Vietnam as a destination of investment and development given growing opportunities for cooperation. He affirmed that "With the Germany - Vietnam Economic Forum and Chancellor Angela Merkel’s visit to Vietnam, Vietnam - Germany relations have been brought to a new high, carrying deepening and broadening strategic cooperation in five aspects: strategic political cooperation; trade and investment; justice and law; development and environmental protection; education, science, technology, culture, tradition and society. Vietnam will create favourable conditions for German businesses to invest and do business effectively in Vietnam, and always see the success of German firms as mutual. Confident with the active support of the two governments and creative dynamism of the business community of the two countries, bilateral relations between Germany and Vietnam will develop strongly and comprehensively in the coming time, marking a new era of effective bilateral cooperation in the 21st century.”

 

In her part, German Chancellor Angela Merkel expressed her good impressions on Vietnam’s socioeconomic achievements, particularly in the last 10 years, and affirmed that Ho Chi Minh City was the most dynamic economic centre in Vietnam. Thus, Germany would like to establish cooperative relations with Vietnam in general and HCM City in particular. Chancellor Angela Merkel said German businesses are not only very trustworthy and possess advanced technologies and techniques, but they are also very interested in vocational training for workers in Vietnam. She confirmed that German firms are very reliable because they pursue long-term and sustained cooperation and always share forces with invested countries for joint development. German companies want long-term investment cooperation in health, education, and especially infrastructure modernisation in Vietnam.

 

She added that the Government of Germany had signed a 450 million euro credit agreement for health, environment, vocational training towards sustainable growth. In the future, Germany and Vietnam will promote economic and commercial cooperation, focusing on healthcare, education and environment. Germany will continue providing ODA loans for Vietnam to build the urban subway and German House projects in Ho Chi Minh City. Notably, the German House project will create favourable conditions for German businesses to settle and exchange investment-related issues in Vietnam.

 

Chancellor Angela Merkel said a cooperation that produces benefits for both peoples is what the German Government desires. Nonetheless, to enhance the magnetism of its investment environment, Vietnam needs a reliable legal framework, a non-bureaucratic administration, and a synchronised and modern infrastructure system. At the same time, Vietnam needs to continue privatising the economy. She pledged to support Vietnam to strengthen its comprehensive cooperation with the EU, to be recognised as a market economy by the EU, and to negotiate and conclude the EU - Vietnam Free Trade Agreement. Besides, Germany is willing to help Vietnam with technology, expertise and personnel management, and forge long-term development cooperation with Vietnam on the basis of mutual benefit.

 

The forum also discussed two key issues: sustainable urban planning and development, and sustainable industrial production. Most attending German businesses shared the viewpoint that Vietnam was a fertile ground for them to invest, especially in high-tech, education and environment. Germany has vast experience in sustainable development; thus, it will continue cooperating with and investing in Vietnam, making sustainable development a joint opportunity for both Vietnam and Germany in two aspects: economic development and moral standards for the next generations. Notably, the lifting of two-way ties to strategic partnership will facilitate the expansion of bilateral economic, commercial and investment cooperation in the near future.