Vietnam - Germany: Very Successful and Reliable Partnership

On the occasion of 40 years of Vietnam-Germany diplomatic relations (1975-2015), Vietnam Business Forum interviewed Dr Hans-Dieter Stell, German Consul General in HCMC. Le Phuong reports. 

The relations between Germany and Vietnam have developed over the last 40 years to a very successful and reliable partnership. We are looking forward to intensifying our political, economic and cultural relations in the future. Regarding the economic relations, Southern Vietnam offers great potential and conditions for private sector activities and FDI. Ho Chi Minh City as the major economic center is the location of many of more than 300 German companies currently operating in Vietnam. Recently the vocational education and training have become another economic key issue that holds huge potential and benefits for young Vietnamese as well as for German companies. 

 

The issue of climate change is of special interest for Germany. Therefore the contribution to a successful implementation of the Green Growth Strategy in Vietnam is viewed as a priority in economic and development relations. Since 1990, Germany has provided more than EUR 1.8 billion for ODA projects in Vietnam through technical and financial cooperation. Germany is by Vietnam´s side to achieve more sustainable economic growth and enhance its competitiveness by strengthening financial and human resources. The relevant programs are being largely conducted by Germany´s two major implementing organizations for development cooperation, the KfW Development Bank and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), which are funded by and operate on behalf of the German Federal Government. 

 

Many German businesses have expanded their operations into Vietnam, as German FDI into Vietnam has increased considerably from USD 56.2 million in 2008 to USD 169 million in 2014. German companies rank 15th among foreign investors in Vietnam. These facts and figures prove in general much potential in the current investment situation in Vietnam. However some economic reforms are still needed. In order to make Vietnam even more attractive for German investors, it needs to strengthen the rule of law and related structures. The previous reform efforts have been directed into the right direction, e.g. the newly implemented Decree 60 which allows foreign ownership to rise up to 100 percent in some important sectors; or the revised Enterprise Law, taking effect from July 1^st 2015, which rules that the procedures for business startups will be halved to five days and the time for procedure completion will be cut to 17 days from 34 days.

 

Our diplomatic relations were highlighted by the establishment of the Strategic Partnership in 2011 signed by Federal Chancellor Angela Merkel and Prime Minister Nguyen Tan Dung. So far there have been a great number of successful joint projects, e.g. the cooperation concerning vocational training with LILAMA 2 College in Dong Nai, business development for the poor in Ben Tre provinces, combating climate change in the Central and Highland regional areas flood protection in Mekong Delta etc. Recent major joint projects include Vietnamese-German University (VGU), Deutsches Haus (German House) and Metro line 2 in Ho Chi Minh City. We are looking forward to the successful completion of more joint projects.        

 

Besides common challenges like pressure to protect natural resources, negative impacts of climate change, Vietnam is faced with infrastructure expansion, widening social and economic inequalities, and an urgent need for educational improvements. Germany is confident in Vietnam’s ability to face these challenges in the future and is willing to be a strong and reliable partner.