The Federal Republic of Germany is the largest trading partner of Vietnam in the European Union (EU) and an important transit gateway for Vietnamese goods to enter other European markets. In a bid to further strengthen economic and trade cooperation ties between Vietnam and Germany, the Export Promotion Centre (PROMOCEN) under the Vietnam Trade Promotion Agency (Vietrade) organised a seminar entitled “Germany - Bright spot for Vietnam exporters” in Hanoi on September 17, 2014. The event provided useful and updated information for enterprises to seek effective export orientations and measures with the German market in the future.
Speaking at the meeting, Bui Huy Son, Director of Vietrade, stressed that Vietnam and Germany have long relationship and mutually complementary economic structures. In a bid to become a modern industrialised country by 2020, Vietnam has a huge demand for development of industries where Germany holds enormous advantages, particularly in technologies, over other industrialised countries to boost exports to Germany in particular and to Europe in general. At present, both sides have great opportunities to tap potential cooperation. Especially when Vietnam and the EU are now accelerating negotiations to conclude the Vietnam - EU Free Trade Agreement, the strengthened connectivity of Vietnamese and German companies will deepen the Vietnam-Germany strategic partnership.
According to the General Department of Vietnam Customs, Vietnam earned US$2.8 billion from its exports to Germany in the first seven months of 2014, an increase of 4.62 percent over a year earlier. The Southeast Asian nation mainly shipped telephones, apparels, textiles, footwear, coffee, computers, electronic products, seafood, machines and equipment. Specifically, telephones and parts accounted for 25.2 percent of its export revenue, or US$728.6 million, in the reporting period, down 27.18 percent year on year. Apparels and textiles ranked second in forex earner for Vietnam in trade with Germany as the goods generated US$448.8 million, up 26.34 percent year on year. Vietnam mainly imported machinery, technical equipment, automobile, looms, pharmaceuticals and chemicals from Germany.
Germany had 215 investment projects with a total registered capital of more than US$1.1 billion as of 2013, ranking 22nd out of 101 countries and territories investing in Vietnam. In 2013 alone, Germany had 21 new projects valued at more than US$106 million. Three-fourths of projects and two-thirds of investment capital of Germany were injected in processing, manufacturing, technical services, information and communications, banking and insurance. Currently, 26 provinces and cities have Germany-invested projects, mainly in Ho Chi Minh City, Hanoi, Binh Duong and Dong Nai. Some big German corporations have invested in Vietnam, including Metro, Siemens, Deutsche Bank, Bayer and Stock.
Germany is also a big ODA donor for Vietnam. Its ODA is primarily spent on three areas: Economic reform and sustainable economic development support; environment policies, protection and sustainable use of natural resources, including water supply and waste treatment; and health, family planning, and HIV/AIDS prevention.
Dr Benno Bunse, Head of Germany Trade & Invest (GTAI), a state-run economic development agency of Germany, said Vietnam - Germany trade relations are a two-way street, with trade and investment policies for both sides. The presence of GTAI in Vietnam in 2008, located in the same address as the Delegation of the Germany Chamber of Commerce and Industry in Vietnam, proved the fact that Germany considered Vietnam an important investment destination. This is also a sign of broader commitments between the two countries. The Hanoi Declaration signed by of German Chancellor Angela Merkel and Vietnamese Prime Minister Nguyen Tan Dung in October 2011 opened a new era in bilateral relations.
He stressed that Vietnam has long imported technological secrets from Germany. By investing in "Made in Germany" machines and equipment, Vietnam can realise its promise of becoming a modern industrialised country in 2020.
He added that Vietnam is, and will be, still a development partner of Germany. Germany is committed to assisting Vietnam to achieve more sustainable economic growth. Benno Bunse recommended Vietnamese companies trust services of GTAI, a partner that supports European market penetration, for the sake of mutual interests and development.
Marko Walde, Chief Representative of the Germany Chamber of Commerce and Industry in Vietnam, said Vietnam and Germany established diplomatic relations for a long time. And, the bilateral friendly and cooperative relations are deepened and broadened since then. Among EU countries and Europe as a whole, Germany is the largest trading partner of Vietnam and Vietnam is an important partner of Germany in ASEAN. This will be a good opportunity for business support agencies, investment consulting agencies, and businesses to enhance exchange, share experiences and find effective solutions to boost stable economic and trade growth between Vietnam and Germany.
He added that Vietnamese companies can make inroads into Germany in different ways like analysing information at their offices, and attending trade fairs, exhibitions, forums and other business events. When they take part in trade fairs, they will have the chance to access technological innovation, update market information, expand markets and develop new distribution channels.
Thu Ha
Vietnamese
