GIC - A Link between Vietnamese and German Enterprises
German Industry and Commerce (GIC) Vietnam is part of the worldwide network of German overseas chambers of industry and commerce, with some 120 offices in over 80 countries and territories. GIC is a private, non political and not for profit organisation with an official mandate to promote economic ties between Germany and its host countries. VIB Forum magazine spoke with Mr. Ehrmann, Chief Representative in Vietnam.
Can you please inform our readers about the activities and achievements of German Industry and Commerce (GIC) in Vietnam?
For more than ten years GIC Vietnam has been active through our office in Hanoi and in the near future through an additional office in Ho Chi Minh City. Every year we handle several hundred enquires from companies locally and in Germany who are searching for business contacts, buyers, suppliers and cooperation partners. Every year we bring 10 to 15 new companies to Vietnam with innovative products from Germany in a wide range of industries, as in one recent project where we helped a company to supply special building materials to Vietnam in order to upgrade the quality of construction in Vietnam. Vietnamese enterprises regularly contact us in order to provide them with information on German business partners or how to do business in Germany and attend German trade fair. We are the official representative for Messe Frankfurt, Messe Duesseldorf, Nuernburg Messe and Messe Berlin exhibitions, every year we have about 150 exhibitors, 400 visitors travelling to Germany and we handle about 1,000 trade fair related inquiries. To promote Vietnam in Germany we regularly publish the German language “Vietnam Brief†with a distribution list of 1,500 relevant contacts in Germany and Asia. The “German-Vietnamese Business Handbook and Directory†has been published for three years and is the only comprehensive source of information on German investments in Vietnam and is an invaluable publication for anyone doing business with Vietnam. GIC Vietnam has been the first international business organisation to produce such a handbook, the entire production is done in Vietnam and to the highest quality standards. Besides the above mentioned we create specialised and sector specific industry profiles on different sectors of the Vietnamese economy. Furthermore our office is active in the fields of event organisation, such as seminars, press conferences and presentations. We help mediate commercial disputes through out of court means and engage in various lobbying activities.
What advantages and disadvantages have German enterprises met with in Vietnam? In the near future, what plans do you have in order to solve these difficulties?
Vietnam offers a host of attractive conditions to foreign investors, such as its geographic location, a well-educated labour force, an ambitious and enterprising population, an abundance of natural resources, high GDP growth rates, but most of all a consistent and determined policy of market reform and internationalisation. German investors greatly benefit from the close relations between the former GDR and Vietnam that has produced several tens of thousands of well educated German speaking Vietnamese who today often fill senior positions in government, administration and business in Vietnam. No other country in our region can offer such advantages in this combination: Vietnam is the most promoted developing country in Asia with all prerequisites to make foreign direct investment successful and in many instances Germans can conduct their negotiations in the German language. Germany does not suffer from any country specific disadvantages in Vietnam, rather the opposite: we have no historic burdens in Vietnam, and people generally warmly welcome German products, technologies, philosophy and discipline. Another important aspect of doing business in Vietnam for Germany is that Germans can even get (in excellent quality locally made) German beer and sausages in Vietnam!
What comments can you offer on the friendship between Germany and Vietnam, specifically trade relations?
Personally I am a great admirer of Vietnam. I travelled to Vietnam for the first time in 1990 on a business-scouting trip in order to arrange the visit of a business delegation of German companies based in Hong Kong. I have been visiting Vietnam regularly ever since and recently I took up residence here together with my family. I was always very impressed about the openness, diligence and friendliness of the Vietnamese people. Vietnam has many features that remind visitors of a European influence and makes it easy for them to feel at home.
Trade between Germany and Vietnam has been booming for over ten years. Trade volume has increased five fold in the last ten years from €0.36 billion in 1993 to an estimated €1.9 billion in 2004 with spectacular growth of Vietnamese exports to Germany in shoes and wooden furniture. Goods made by German invested firms in Vietnam strongly contribute to bilateral trade and recent projects like Cam Pha cement plant are a major boost to Germany’s mostly industrial product exports to Vietnam. Trade and investment is likely to increase further in future, especially as German companies who are already active in the region (China, Hong Kong, Thailand, Malaysia, Singapore, Philippines) show a renewed and strong interest in the country. Many of the inquiries we are handling come from German companies based in the aforementioned countries.
For the 5th Asia Europe Summit Meeting (ASEM 5), especially 9th Asia Europe Business Forum (AEBF 9), what would you like to say to German as well as Vietnamese enterprises?
ASEM 5 and AEBF 9 provide a great opportunity to direct German investors’ attention towards Vietnam. We need this kind of exposure in order to generate more interest in this promising country to our home base in Germany. Despite many meaningful efforts by our partners and ourselves, Vietnam is still not recognised as an investment location which has much to offer. Without neglecting the shortcomings we believe that Vietnam is underrated in the perception of German and international investors. A consistent and systematic investment promotion strategy is required and there should be greater support of Vietnamese enterprise promotion and presentation.
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