More Opportunities for Vietnam - Germany Trade

In the process of industrialisation and modernisation, Vietnam has a huge demand for the development of industries where Germany holds enormous advantages. Vietnamese commodities exported to Germany can conveniently access many other markets in the region. Mr Marko Walde, Chief Representative of the German Industry and Commerce (AHK) in Vietnam, said Germany is located in the centre of the EU, bordered by France, Switzerland, Austria, Czech Republic, Poland, Belgium and Luxembourg; thus, it is a good transit for Vietnamese commodities to reach other European markets. Bui Huy Son, General Director of the Vietnam Trade Promotion Agency (Vietrade) under the Ministry of Industry and Trade, said Germany is not only a strategic partner of Vietnam but also a gateway for its products to penetrate into the EU market. The European Union (EU) where Germany is a member has also granted Generalised Scheme of Preferences (GSP) to Vietnam since the beginning of 2014.

 

Dr Benno Bunse, Head of Germany Trade & Invest (GTAI), said, Vietnam has long imported technological know-how from Germany. By investing in "Made in Germany" machines and equipment, Vietnam can realise its goal of becoming a modern industrialised country in 2020.

 

He added that Vietnamese businesses’ adoption of German technologies and equipment is the investment for its future competitiveness in the ASEAN Economic Community planned to be formed in 2015. For its part, Vietnam has been, and will be, an important development partner of Germany. Germany is committed to assisting Vietnam to achieve more sustainable economic growth. GTAI is ready to support Vietnamese businesses to expand their operations into Germany and into the European market.

 

Marko Walde said, to make inroads into Germany, Vietnamese companies need to analyse information about market trends, consumer trends, customer tastes, market requirements and product quality requirements. They also should attend trade fairs, exhibitions, forums and other business events to introduce products and seek partners as well as look more clearly at competitors and learn about business culture in Germany.

 

However, according to experts, Germany is fastidious about product quality in the EU and Vietnamese companies should thus raise product quality so as to enhance competition. They should have such quality certificates like ISO 9001, TL 9000 and AS 9100, safety and environmental hygiene certificates like ISO 14001, SS 506 and QC 080000, and Safety and Health Management System (SHMS), Safety Management of Hazardous Substances (SMHS) and foot safety certificates like ISO 22000 and FSSC 22000.

 

At present, there are about 1,000 Germans living and working in Vietnam while Vietnam has 125,000 people living and working in Germany, which is seen as an effective bridge for cooperation between business and investment of the two countries. Currently, Vietnam and the EU are urgently concluding negotiations of the Vietnam-EU Free Trade Agreement (FTA). Once coming into force, the FTA will create favourable conditions for Vietnam's products to enter German market as well as other countries in the EU.