German businesses are seeking new investment opportunities in Vietnam, an entrepreneur told reporters from the Dau tu (Investment) newspaper.

The newspaper quoted Marko Walde, chief representative of German Industry and Commerce Vietnam (GIC/AHK Vietnam) as saying that German firms noticed the increasing attractiveness of Vietnam thanks to the establishment of the ASEAN Community and the country’s signing of important free trade deals, not to mention its existing advantages.

According to the German Embassy in Hanoi, many major German companies, which are operating in various fields such as automobile, energy and industrial machinery in Vietnam, plan to expand their presence in Vietnam to take advantage of the improved investment climate and signed free trade agreements (FTAs).

An automobile manufacturing plant. (Photo for illustration)

For example, Terra Wood, a company specialising in green energy solutions, has proposed two projects on wind and solar power with a total investment of 400 million USD and combined capacity of 300 MW in the central province of Quang Ngai.

Some sources revealed that Marquardt Group will arrive in the central city of Da Nang next month to discuss with municipal authorities the production of hi-tech automobile equipment and components. The project would have an investment of about 39-50 million USD and generate jobs for some 500-600 local workers.

Mercedes-Ben also has plans to expand business in Vietnam after investing 20 million USD in the country in 2013-2014.

Vo Quang Hue, Managing Director of Bosch Vietnam, said Vietnam was one of the company’s key markets in Southeast Asia in the 2015 fiscal year, posting a 50 percent in sales revenue.

“We want to turn Vietnam into a strategic center for our manufacturing and research and development activities in the region”, he said.

This year, Bosch injected over 20 million USD into its manufacturing plant in the southern province of Dong Nai, bringing the company’s total investment in Vietnam over the past five years to 340 million USD.

President and CEO of Siemens Vietnam Pham Thai Lai also described Vietnam as an important market of Siemens in the region, revealing that the company will continue investment in the country in the years to come.

Vietnam will enjoy big benefits from the Vietnam-EU Free Trade Agreement (EVFTA) and the Trans-Pacific Partnership (TPP) agreement when they come into force, he said, adding that Siemens wants to get involved in thermal power and transport projects in the market, for example, the metro No.2 in Ho Chi Minh City.

According to a recent survey conducted by GIC/AHK Vietnam, more than 50 percent of German businesses said they are optimistic about the economic development prospects in Vietnam, while 47 percent of respondents expressed their confidence in the country’s economic growth next year.

As many as 70 percent of German enterprises said they are satisfied with their business outcomes in Vietnam while 58 percent are confident in future revenue increase.

In particular, 54 percent of respondents confirmed that they will increase investment capital in Vietnam and 58 percent have recruitment plans in 2017.

Close to 300 German businesses are operating in Vietnam with 268 valid projects worth 1.36 billion USD.

German Ambassador to Vietnam Carl Georg Christian Berger said apart from giants such as Mercedes Benz, BMW, Siemens and Bosch, most of German businesses in Vietnam are small-and medium-sized ones.

Germany’s investment in Vietnam will increase further in the future if the Southeast Asian country could remove obstacles in administrative and judicial procedures, the Ambassador said, adding that the embassy is coordinating with the Ministry of Industry and Trade and the Ministry of Planning and Investment to build a mechanism to support German businesses and define fields that need to draw German investment.

Source: VNA