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Germany sees great prospects for co-operation
Germany is one of Viet Nam’s biggest European partners. German enterprises continue to promote trade with their Vietnamese counterparts, despite the economic crisis. Viet Nam News reporter discusses the promotion of bilateral trade with German Embassy Deputy Head of Mission Holger Seubert.
What do you think of bilateral trade between Viet Nam and Germany and the balance of trade between the countries?
The Socialist Republic of Viet Nam has for many years been a priority partner in Asia for Germany. During the past two years, we have witnessed high-ranking visits of our Federal President, the President of the German Federal Council, the German Foreign Minister, several delegations from the German Bundestag (Parliament) as well as a huge number of various federal ministers and vice-ministers.
In March last year, Prime Minister Nguyen Tan Dung officially visited Germany with more than 100 Vietnamese businessmen in his delegation.
From a German viewpoint, there are only a few countries in the world that can match this density of highest-ranking bilateral contacts in such a short time. It can thus be stated without exaggeration that German-Vietnamese relations have never been better.
The number of Vietnamese citizens living in Germany and the number of German-speaking Vietnamese living in Viet Nam is impressive. We estimate both to total 90,000. These people form a unique bridge between our two peoples. Vietnamese citizens who lived in Germany and chose to return to their homeland often offer their bi-cultural and bilingual experience to German companies in Viet Nam.
Germany is by far Viet Nam’s most important trading partner within the European Union. Bilateral trade reached more than US$4 billion last year. One third of Viet Nam’s trade with the European Union is with Germany. Next year Germany and Viet Nam will celebrate 35 years of bilateral relations. On this occasion, both governments have decided to celebrate a "German-Vietnamese year" with a vast variety of events in the fields of music, theatre, film, sports, education, science, environment, trade and others.
What should Viet Nam do to promote trade and what do both countries need to do to overcome the economic crisis and still become an alluring investment location? Also, what advantages and difficulties do Germany’s enterprises face when working in the Viet Nam market?
German businessmen in general speak positively about Viet Nam’s efforts to improve the overall business environment. For many German companies, Viet Nam has become one of the most attractive investment destinations in Asia.
However, a few problems remain. Firstly, the human resources problem. The lack of well-trained engineers and managers has become one of the main concerns of German investors. The German and the Vietnamese governments have thus decided to jointly address the problem. Last year, the Vietnamese-German University was established in HCM City.
Vocational training remains a focal area of bilateral development co-operation and during Prime Minister Dung’s visit last year a Joint Declaration on Co-operation in Advanced Training of Business Executives from Viet Nam was signed.
Secondly, infrastructure problems, such as jammed roads and ports and power cuts are major obstacles.
Thirdly, bureaucracy. Legislative and bureaucratic processes have clearly improved but the Government is only part-way through its efforts to fight corruption and bureaucracy and to streamline official procedures. Finally, the judiciary. The Vietnamese Government has to be commended for its decision to reform its justice system. Germany has declared its readiness to support Viet Nam in this endeavour. Both governments have signed a declaration to closely co-operate in the field of justice.
How do you evaluate co-operation ability to develop business between Vietnamese and German enterprises?
Despite the crisis, which has been heavily affecting both countries, the prospects for further co-operation between German and Vietnamese companies remain positive.
This year, broadly considered problematic in terms of trade and commerce, business between German and Vietnamese enterprises may well cool. However, given the mid-term perspective, German businessmen unanimously evaluate Viet Nam as one of the most attractive markets and investment destinations in the region.
To promote exports to Germany, what should Vietnamese enterprises do?
Last year, goods and services exported from Viet Nam to Germany totalled $3 billion. On the other hand, German only exported goods and services worth $1.3 billion to Viet Nam. This shows Vietnamese companies are already doing well in the German market. This is particularly true for companies involved in the production of textiles and shoes. It is worth noting that Germany is the biggest importer of Vietnamese coffee and pepper.
Germany has one of the highest developed atomic power sources in the world. How do you evaluate the development plan for atomic power in Viet Nam and the likelihood of Germany’s support for such a project?
Demand for energy is growing quickly in Viet Nam (more than 15 per cent a year). It is thus understandable that Viet Nam is looking for new energy sources, such as renewable energies and nuclear power.
However, the risks in producing atomic energy and problems with storing nuclear waste should not be underestimated.
Germany is prepared to support Viet Nam’s efforts to promote renewable energy sources, such as wind or solar energy. Viet Nam deserves to be commended for its efforts to draft a Renewable Energy Law. Germany, with its vast experience in this field (the German Renewable Energy Law came into force in 2000), stands ready to assist Viet Nam in this endeavour.
Germany knows how to make seaport operation profitable. For example, the Port of Hamburg is the biggest in Germany. Can you outline experiences in developing and managing the port and compare to ports in Viet Nam?
The Port of Hamburg is a deep water harbour off the North Sea on the river Elbe. It is by far the largest port in Germany and the second-largest port in Europe (after Rotterdam). More than 10 million containers were handled in Hamburg last year. The port is known as Germany’s "gateway to the world".
So far, co-operation between the port and Vietnamese ports has been limited. The German Embassy is ready to initiate contacts and co-operation between ports in Viet Nam and Germany.
As the world’s third largest aviation centre, Hamburg plays a significant role in Viet Nam’s aviation industry.
Vietnam Airlines has acquired 23 aircraft of the Airbus family from Hamburg and plans to double its airbus fleet by 2015.
VietNamNet, Viet Nam News
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