Germany-Vietnam Investment Cooperation - Vietnam Briefing News
Germany now Vietnam’s largest EU trading partner
Nov. 3 – In 2010, bilateral trade between Vietnam and Germany reached US$4.1 billion, showing substantial development since the two countries set up diplomatic agreements on September 23, 1975. The mutual understanding between Vietnam and Germany has been further strengthened through maintaining trustworthy partnerships and a political consultation mechanism between the two Foreign Ministries that was established in 2008. Moreover, the two countries have signed a number of agreements to form a legal foundation for bilateral economic cooperation such as the Agreements on Double Taxation Avoidance, Investment Encouragement and Protection, Maritime Shipping and Aviation.
As German Chancellor Angela Merkel has recently pointed out in her official visit to Vietnam for the Vietnam-Germany Economic Forum, German entrepreneurs consider Vietnam as fertile ground to do business, particularly in the high-tech industry as well as in education and environment. She also expressed her good impressions on Vietnam’s socioeconomic achievements, particularly in the last 10 years, and affirmed that Ho Chi Minh City was the most dynamic economic center in Vietnam. Thus, Germany would like to establish additional cooperative relations with Vietnam in general and HCM City in particular. She also identified some key issues to enhance Vietnamese investment environment.
RELATED: Dezan Shira & Associates’ Pre-Investment, Market Entry Strategy Advisory Services
“Vietnam needs a reliable legal framework, a non-bureaucratic administration, and a synchronized and modern infrastructure system. At the same time, Vietnam needs to continue privatizing the economy,” Merkel said.
Finally, the chancellor pledged to support the country to strengthen its comprehensive cooperation with the EU, to be recognized as a market economy by the EU, and to negotiate and try to conclude an EU-Vietnam Free Trade Agreement.
Furthermore, Madame Cornelia Pieper, Minister of State at Germany’s Federal Foreign Office, has recently released an interview for the Vietnam Chamber of Commerce magazine where she indicated about 150 German firms currently doing business in Vietnam, including the giants Siemens, Metro Cash & Carry, and Deutsche Bank with an amount of US$560 million disbursed so far.
Chancellor Merkel’s recent visit to Vietnam has been a good opportunity to promote bilateral relations more strongly, deeply and effectively. Germany will continue investing and cooperating with Vietnam on the basis of mutual benefit hoping to further develop Vietnam-Germany relations in all fields in the coming time.
Dezan Shira & Associates is boutique professional services firm providing foreign direct investment business advisory, tax, accounting, payroll and due diligence services for multinational clients in Vietnam. To contact the firm, please email [email protected], visit www.dezshira.com, or download the firm’s brochure here.