17:09 | 30/03/2016 Investment
(VEN) - In a talk with Vietnam Economic News’ My Phung, German Business Association in Vietnam (GBA) Chairman Jens Ruebbert shared his trust in the Vietnamese market and expectations of German businesses in Vietnam.
The GBA and AHK/GIC sign a cooperation MoU with the Vietnamese Ministry of Industry and Trade and the Vietnam Chamber of Commerce and Industry in Berlin
What do German businesses in Vietnam expect from the EU-Vietnam Free Trade Agreement (EVFTA), from your point of view?
After the EVFTA takes effect, nearly all customs duties - over 99 percent of the tariffs - will be eliminated. Vietnam will liberalize 65 percent of import duties on EU exports to Vietnam at “entry into force” and the remaining duties will be eliminated over the next ten years. Furthermore, the agreement will contain an annex with provisions to address non-tariff barriers in the automotive sector. As Germany is the largest supplier of advanced machines, equipment and technology for national industrialization and modernization of Vietnam, the German firms – as well as others within these sectors - are expected to see the growth opportunities in Vietnam and are eager to tap this potential.
The FTA will also allow EU companies to bid for Vietnamese public contracts with bodies such as local ministries, state-owned enterprises, public hospitals and the most lucrative contracts in Hanoi and Ho Chi Minh City. Furthermore, the Vietnamese market will be more open to EU service operators.
What do you think of German investment trends in Vietnam after it joined the AEC and TPP?
I think we can expect a steady growth of investment from Germany into Vietnam, not only in sectors like green technology and infrastructure, but also in education, sciences as well as health-care and medical appliances. Currently, Germany and Vietnam are focusing their cooperation on vocational training, the environment (biopersity and coastal protection) and energy (energy efficiency and renewable energy).
Could you share your success experience with new German investors in Vietnam?
In order to do business successfully in a new country, naturally a thorough knowledge of the business environment, working conditions and legal framework are required. German investors also need to understand that there are some cultural differences. Aside from that, I think Vietnam is a very promising and attractive market with an ample and young labor force.
Could you share your plan to promote GBA’s role in Vietnam, as well as to increase German investment in Vietnam and the connection between businesses of the two countries?
In order to even better represent German business in the growing Vietnamese market, advise German companies and attract more German investment into Vietnam, we need an even stronger and more professional GBA than ever before. Therefore, one of our main objectives this year will be to continue expediting the merger with the Delegate of German Industry and Commerce in Vietnam (GIC/AHK Vietnam), in order to establish the bilateral German-Vietnamese Chamber of Commerce (AHK Vietnam).
The AHK is a long-standing and highly experienced organization that will provide the German business community in Vietnam with a broad range of support tools as well as direct links into its global network. The chamber will provide the optimal platform to further boost German business in Vietnam and thus tap the opportunities this exciting country and promising market has to offer.