Germany, a European leader in trade

10:07 | 08/07/2015 Cooperation

(VEN) - Thanks to geographical location at the center of Europe and its economic power, Germany has become a leading European country in terms of trade with Vietnam.

Germany, a European leader in trade

Mercedes-Benz has proved its effectiveness in Vietnam

As the world’s third largest export-import country, Germany has become a pioneer in advocating global trade liberalization. In addition, Germany has paid special attention to emerging markets in Latin America, Africa and Asia-Pacific, including Vietnam.

2015 marks 40 years of diplomatic relations between Germany and Vietnam. The friendly relationship between the two countries have constantly developed and become increasingly effective and practical.

Vietnam currently ranks fourth and 55th among the 144 countries exporting to and importing from Germany. Germany has become Vietnam’s biggest trade partner in the EU with 20 percent of total annual export turnover to this country through the main exports of footwear, garments and textiles, coffee, furniture, seafood and leather. Meanwhile, the main imports are machinery and equipment, cars, textile machinery, chemicals and pharmaceuticals.

A joint declaration on the establishment of the strategic partnership between the two countries, emphasizing cooperation in numerous areas was signed as part of German Chancellor Angela Merkel’s official visit to Vietnam in October 2011. After officially upgrading to a strategic partnership, although Germany was negatively affected by the growing EU economic crisis, while Vietnam was affected by the global economic crisis, two-way trade turnover still reached US$6 billion in 2011. This figure has seen good growth in recent years, reaching US$6.4 billion in 2012, US$7.7 billion in 2013 and US$7.8 billion in 2014.

However German investment in Vietnam has remained modest and is not commensurate with the potential and desire of each party. Germany currently ranks 23rd among the 101 countries and territories in the world investing in Vietnam with 232 valid projects and total registered capital of US$1.25 billion focusing on manufacturing and processing industry, distribution system and power projects. Around 250 businesses, including many well-known German corporations like Siemens, Mercedes Benz, Bosch, Bilfinger, Adidas and Braun have increased their presence in Vietnam.

Germany and Vietnam are working together to accelerate the progress of key projects such as the German House and the Metro line 2 in Ho Chi Minh City. The German government has said it would support Vietnam in the construction and development of a Vietnamese-German University.

Germany has become a pioneer in advocating Vietnam to strengthen comprehensive cooperation with the EU and fostering the EU to conclude negotiations and sign the EU-Vietnam Free Trade Agreement. After the agreement is signed, German investment in Vietnam is expected to create a breakthrough to be commensurate with potential and expectations of each party.

Bui Duc Khiem