Vietnam key investment destination: German Chancellor

Speaking at the Vietnam – Germany Business Roundtable on Sunday evening he said the world economy would only succeed when each country takes advantage of its capabilities and potential, and Vietnam, with its abundant raw materials and trained labor, has succeeded in this.

Expressing happiness that the E.U.-Vietnam Free Trade Agreement had come into effect, he said it is the basis for the two countries’ economies to recover and develop together by creating mutual trust in economic cooperation.

Many German businesses are looking for Vietnamese partners in trade, infrastructure and energy, and a lot of vocational training in Vietnam is based on the German model with support from German companies, he added.

Prime Minister Pham Minh Chinh called on the German government and businesses to continue their support to Vietnam with technology transfer, research and development and collaborative programs to train and improve the quality of human resources and achieve digital transformation.

There is great potential for economic cooperation between the two countries, he said.

Prime Minister Pham Minh Chinh speaks at the Vietnam – Germany Business Roundtable in Hanoi on November 13, 2022. Photo by VnExpress/Giang Huy

Amid the slowing economic growth in some Asia-Pacific countries and disrupted supply chains, he urged German businesses to shift their investment to Vietnam, a safe destination with a stable political situation, competitive costs, abundant human resources, and a favorable business environment.

“The Vietnamese government is committed to creating favorable conditions for German businesses to invest effectively and sustainably in the spirit of harmonizing benefits, sharing difficulties and risks.”

He said trade and investment cooperation would remain an important pillar in the bilateral relationship and a driving force that would take the strategic partnership to a new level.

Since Germany has identified Vietnam as a global partner in its development cooperation strategy for until 2030, he sought its support to strengthen institutions and draft policies for mobilizing green financial resources, especially from G7 countries and multilateral institutions, to help Vietnam build a green economy, respond to climate change and fulfill its climate commitments.

Germany has 437 projects in Vietnam with a total investment of US$2.34 billion, making it the 18th largest investor out of 141 countries and territories.

Germany has provided official development assistance loans of more than $2 billion to Vietnam.

Scholz arrived in Hanoi Sunday for a two-day visit.

The two countries established diplomatic relations in 1975.

Germany is Vietnam’s largest trading partner in the EU and Vietnam is its largest trading partner in Southeast Asia. Their trade in the first seven months of the year was worth $7.3 billion, up 18.5% year-on-year.