10:35 | 04/12/2015 Economy
Foreign direct investment from Germany in Vietnam is expected to hit $5 billion within the next five years, tripling the current figure, as Vietnam and the EU will sign a free trade agreement in December.
A Siemens facility in Vietnam (Photo: www.siemens.com)
The figure was announced during a meeting between Germany Chancellor Angela Merkel and Vietnamese President Truong Tan Sang, who paid a three-day visit to the European country, state-run media reported.
German FDI in Vietnam has grown 70% from 2010 to $1.41 billion in 2014 and ranking fifth among countries from the European Union.
According to the Ministry of Planning and Investment, German firms had 274 projects with a total pledged capital of $1.48 billion as of October 2015. The biggest players are engineering and electronics companies Bosch and Siemens, automakers Audi AG and DaimlerChrysler, and consumer product firm Braun GmbH.
President Sang and Chancellor Merkel agreed to boost mutual investment in the two countries’ manufacturing, electrical engineering, infrastructure, renewable energy, agriculture and consumer goods sectors.
In addition, the two leaders agreed to increase trade between the two countries to $20 billion in the next five years, compared to $7.8 billion in 2014./.