Germany is the biggest trade partner of Vietnam in Europe, accounting for 19 percent of Vietnam's exports to the EU (equivalent to the exports of Vietnam to the UK and France combined). This is also an important transit gateway for Vietnam goods to other markets in Europe. The relations and cooperation between the two countries are developing actively, effectively and comprehensively in trade, investment, defence, culture, education and other areas.
In Government-level relations, for many years, the German government has appreciated the development and position of Vietnam in the Southeast Asia. Trust and mutual understanding between the two countries has been strengthened through exchanges of high-level visits and political consultation mechanism between the two Ministries of Foreign Affairs (Deputy Minister-level and Regional Department Director-level) which have been set since 2008. During the visit to Vietnam by German Chancellor Angela Merkel in October 2011, Prime Ministers of the two countries signed Hanoi joint declaration on the establishment of strategic partnership which set out the objectives and specific measures to strengthen cooperation in priority areas.
On trade, according to data from the Vietnam Chamber of Commerce and Industry (VCCI), exports and imports between the two countries in 2013 reached more than US$7.6 billion, an increase of 18.85 percent compared to 2012 (US$6.5 billion). Vietnam ranks 40th out of 144 countries exporting goods to Germany, 55th out of 144 countries importing goods from Germany, and 47th out of 144 main trading partner countries on bilateral turnover. Although imports and exports to Vietnam account for only a small fraction of the total value of foreign trade of Germany, Germany still considers Vietnam a potential market and an important partner in the near future.
Vietnam and Germany have signed some agreements creating the legal basis for economic cooperation such as Double Tax Avoidance Agreement, Agreement on Encouragement and Reciprocal Protection of Investment, the Maritime and Aviation Cooperation Agreement. The Vietnam-EU free trade agreement which will be concluded in the near future will dismantle trade barriers, create legal security and protection investment and intellectual property rights and open up space for extensive cooperation for the two sides.
Many Vietnamese enterprises have participated in regular exhibitions, international fairs in Germany such as Anuga Colonge, Tendence, Koblenz, Resale Frankfurt and Hannover EXPO. Through the fairs and exhibitions, Vietnamese enterprises have established many partnerships, signed many contracts with German importers as well as with other foreign businessmen. Textiles are top products of Vietnamese export to the German market, followed by footwear, coffee, handicrafts goods, seafood, computers and components. Footwear and computers have good penetration, making strong position on the German market, contributing to initially build the reputation of "Made in Vietnam" goods.
The two sides also regularly support and cooperate well with each other at international forums. Germany also supports Vietnam to be recognised as the market economy status by the EU, finalising the negotiation of Vietnam-EU free trade agreements (FTA) to strengthen economic exchanges and trade between the two countries.
However, according to many experts, the level of competition on the German market in particular and the EU in general is getting fiercer, and in a negative direction for some exports of Vietnam, especially after China joined the WTO and 10 Eastern European countries joined the EU. Many Vietnam enterprises are weak in competitiveness and professionalism in international trade. Compared with the general laws of the EU, the German law is more stringent. Vietnam businesses need to focus on three criteria: quality, hygiene and social responsibility, in order to survive and compete in this market.
Vietnam has also strengthened cooperation in strong fields of Germany such as culture - education, science and technology high tech, transportation. Some typical projects in cooperation are Vietnam-Germany University (in cooperation with the State of Hessen), railway project "English Green Line" (in cooperation with the State of Brandenburg) with the goal of increasing the speed of train to 160kph without changing the current railway gauge in order to save costs.
For VCCI, it signed a cooperation agreement with Siemens in 1994, and a cooperation agreement with the German Chamber of Commerce in Vietnam-Germany Trade Forum within the Vietnam Days in Germany in October 2005.
In addition, VCCI also organizes regular meetings, exchanges and market research in order to increase opportunities for cooperation between the two countries' enterprises, such as organising the business delegation led by VCCI Vice President Hoang Van Dung visiting and working in Germany at the invitation of the Economic Minister of Baden-Werttemberg State (including 18 businesses mainly engaged in machinery and equipment, training, technology transfer); sending Business groups to survey the German market and organising Vietnam Days in Germany; meeting Vietnam-Germany businesses on the occasion of the official visit to Vietnam by Mr Edmund Stoiber - Premier of Bayern State and so on.
Besides, VCCI and Eurocham have coordinated with domestic and foreign ministries and institutions, founded the Vietnam-EU dialogue forum, built Vietnam-EU investment-trade portal and opened centre of commodities, cultural and tourist attraction in Germany and the EU.
Thu Ha
Vietnamese
