A promising year for German-Vietnamese business relations

Berlin/Hanoi – 2019 was a great year for German-Vietnamese business relations. According to the MPI Vietnam, Germany has until November 2019 nearly US$ 2.1 billion and 349 FDI projects, nevertheless statistic figures do not show the real situation in Vietnam as they are based on the original countries that the capital flow out.

Many long-term investors such as Bosch or Siemens poured their investment capital into Vietnam from the subsidiaries in Singapore or Malaysia.

German FDIs at the moment really enjoy a great reputation in Vietnam and are really welcomed by the government as well as by the local businesses here. There are some huge projects in manufacturing and in green and clean energy sectors using German technologies and know-how in Vietnam.

German FDIs expanded their investments in Vietnam, not only in production but also in R&D centers, training and technical centers in many provinces in Vietnam, showing their commitments in long-term investment in Vietnam, creating the win-win situation as well as the valued added for local businesses.

The year 2020 is expected to be a promising year for the German Vietnamese business relations. This year will celebrate the 45th anniversary of bilateral diplomatic ties, the two countries will be non-permanent members of the United Nations Security Council, Vietnam will assume the role of ASEAN Chair 2020 and Germany will hold the European Union presidency in the second half of 2020.

Together with other German organizations and Vietnamese authorities, AHK Vietnam will organize a variety of events to celebrate and to promote Vietnam as an investment destination for German businesses. The AHK will continue to engage in many fields in order to accompany Vietnam on the way of sustainable development, such as dual vocational training, healthcare sector, green and clean sector and in improving economic policies on purpose of attracting more German investors in Vietnam.

The Free Trade Agreement with the EU

The agreements between EU and Vietnam is supposed to come into effect also in May this year. German companies expected the upcoming EU-Vietnam FTA and EU-Vietnam IPA would improve the economic policy in Vietnam in the long run.

European and German companies can enjoy protection of investments with trade facilitations and increase investments in Vietnam. The elimination of bilateral tariffs and export taxes, together with the reduction of non-tariff barriers affecting the cross-border exchanges of goods and services, are expected to boost bilateral trade considerably and to create new ¬opportunities emerge to access markets across a range of ¬sectors, covering goods, ¬services for German companies in Vietnam.

Events in 2020

The 2 must-events to take part in as German companies in order to understand the Asia-Pacific and ASEAN markets are zje APK 2020 (Asia-Pacific Conference of German Business) in Tokyo and the ASEAN Insights in Duesseldorf, which are co-organized by the AHKs German Chambers of Commerce Abroad. (AHK)