German enterprises eye up Vietnamese market

German enterprises are showing an increased interest in the Vietnamese market, proven by their decision to host the Asian-Pacific Conference of German Businesses (APK) in Vietnam this November.

Since the two countries upgraded their relations to a bilateral strategic partnership in October 2011, their business communities have benefitted from increased mutual trust and investment links, according to the European Market Department under the Ministry of Industry and Trade.

German businesses are keen on exploring Vietnam, the dynamic and promising market, which acts as a bridge between ASEAN and the northeastern Asian nations, including China, Japan and the Republic of Korea.

(Photo for illustration. Source: congan.com.vn)

Trade between Germany and Vietnam reached over 4.9 billion USD during the first eight months of this year, with Vietnam generating nearly 3.32 billion USD in export revenue and importing goods worth more than 1.63 billion USD.

Currently, the European country ranks 22^nd out of Vietnam’s 101 foreign investors, with 238 valid foreign direct investment projects worth 1.3 billion USD.

Notably, leading German brands such as Mercedes Benz, Siemens and Adidas are very popular in Vietnam, which has evolved as a new promising market.

The Vietnamese Government’s efforts to implement its economic development policy in the light of rapid and deep global integration are considered a plus point, German Ambassador to Vietnam Jutta Frasch said.

Particularly, Vietnam and the EU are accelerating negotiations on a free trade agreement (FTA) in a bid to increase demand in the respective markets.

As one of Vietnam’s biggest trade partners, Germany provides technical assistance that enables Vietnam to penetrate the EU market, especially the markets for garments, textiles, footwear and seafood.