Vietnam and Germany formally established diplomatic relations on September 23, 1975. Over nearly 40 years, that relationship has sustained and developed in all aspects.
On his official visit to Germany in October 2014, Vietnamese Prime Minister Nguyen Tan Dung held official talks with German Chancellor Angela Merkel in Berlin (Germany). The visit aimed to accelerate the implementation of the Strategic Action Plan of the two countries and foster Vietnam-Germany Strategic Partnership in all sectors, especially labour cooperation, training and education.
The two sides also exchanged views on regional and international issues of common concerns and agreed to strengthen mutual cooperation and support in multilateral forums and international organisations, especially the UN, ASEM and ASEAN – EU. Chancellor Angela Markel said Germany confirms to continue to support Vietnam to deepen comprehensive cooperation ties with the European Union, accelerate the early conclusion of the Vietnam – EU Free Trade Agreement talks and the recognition of Vietnam’s market economy status. She affirmed that Germany advocates Vietnam’s stance in settling East Sea issues.
Big investor
The Vietnam – Germany bilateral relations have a special value. In Germany, there are about 125,000 Vietnamese people and Vietnamese-originated Germans and Vietnam has about 100,000 people capable of speaking German. Their relationship has been fostered by the people and the leaders of the two countries.
To date, Germany has 236 valid projects with a total registered capital of US$1.34 billion in Vietnam, ranking 22nd out of 101 countries and territories investing in the country. Most projects are engaged in processing and manufacturing industry, with 88 projects and US$626.82 million, accounting for 38 percent of projects and nearly 50 percent of capital. The electricity, gas and water production and distribution sector was the second most attractive to German investors with five projects and US$386.68 million, followed by wholesaling and retailing sector with 37 projects and US$136.43 million.
Up to 177 projects with US$917.3 million are wholly Germany-invested, accounting for 75 percent of projects and 70 percent of capital. 52 projects came in the form of joint venture with a total investment of US$409.16 million, accounting for 23 percent of projects and 33 percent of capital. The rest is in the form of joint stock companies and business cooperation contracts. Germany has investment projects in 34 provinces and cities in Vietnam.
As a big ODA donor for Vietnam, Germany has granted more than US$1.5 billion for ODA projects through technical cooperation and financial cooperation since from 1990. The Government of Germany pledged nearly US$100 million of ODA for Vietnam in 2014-2015.
Apart from investment and trade activities, Germany has also actively promoted Germany-Vietnam rule of law state, supported Vietnam to clear mines, reduce poverty and train human resources.
Placing confidence in Vietnam investment environment
Germany is the largest trade partner of Vietnam in the European Union (EU) and Europe. In 2013, the two-way trade turnover reached nearly US$8 billion, accounting for more than 20 percent of Vietnam – EU trade value. Germany is also an important transit gateway for Vietnamese commodities to make inroads into other European markets. Vietnam is trying to conclude negotiations of Vietnam – EU Free Trade Agreement (FTA), of which Germany is a leading trading partner and investor of Vietnam in this area.
The German Industry and Commerce (AHK)in Vietnam recently released a survey showing that about 70 percent of German investors affirmed that the Vietnamese market has developed positively over the past year and they also put expectations on continued development in Vietnam in 2015.
Based on evaluation criteria, such as macroeconomic situation, capital cost and private consumption, about 50 percent of German companies in Vietnam achieved greater success than 2013. Over 56 percent of respondents believed in positive development business in the next 12 months. 60 percent planned to increase employments in 2015 and keep relatively high reinvestment costs.
Investment flows from Germany to Vietnam is expected to increase further as some big German companies are seeking new investment locations in place of China. Deputy Chief Representative of AHK in Vietnam, Peter Kompalla said some 300 German firms doing business in Vietnam and dozens of companies are seeking for partners in Vietnam.
Vietnam and Germany have signed many agreements, including double-tax avoidance agreement, investment protection and stimulation agreement, and maritime and aviation cooperation agreements to create a legal basis for extending and strengthening bilateral economic cooperation.
As an important partner of development cooperation of each other, “Vietnam and Germany will be determined to deepen strategic cooperation and concrete action plans and add efficiency to the Vietnam-Germany Strategic Partnership. We will focus on five key areas, namely strategic political cooperation; trade and investment; justice and legislation; development cooperation and environment protection; education, science and technology, culture, communication and social exchanges,” Vietnamese Prime Minister Nguyen Tan Dung and German Chancellor Angela Markel jointly affirmed.
Vietnam and Germany officially established their strategic partnership in November 2011. The key fields of cooperation in the Hanoi Declaration announced on October 15, 2011 include strategic political cooperation; trade and investment; justice and legislation; development cooperation and environment protection; education, science and technology, culture, communication and social exchanges.Nguyen Thanh
Đăng ký: VietNam News
