Germany commits to lift Vietnam up

Germany has signed on the dotted line to boost its development cooperation with Vietnam over the next two years.

Last week’s round of development cooperation talks between the two nations ended successfully with Germany vowing to hand over €288.2 million ($374.6 million) in official development assistance (ODA) to Vietnam.

The funds will be used to implement bilateral development cooperation projects in 2012 and 2013. For the first time, Germany also promised to give Vietnam another €1 million ($1.3 million) to help the country cope with the effects of flooding in this period.

“During the negotiations, Germany’s government continued to affirm that Vietnam is its biggest ODA partner in Southeast Asia. Development cooperation will continue being the two countries’ top priority in their bilateral relationship,” said German Ambassador to Vietnam Claus Wunderlich.

He restated German Chancellor Angela Merkel’s commitment to the Vietnamese government made during her official visit to Vietnam this October. At the time Merkel said the two nations’ pivotal development cooperation sectors would be environmental climate protection, urban development and energy, vocational training and health.

The total ODA sum is part of a financial cooperation agreement inked between the two governments during Merkel’s visit. Under the agreement, Germany will give Vietnam €446.8 million ($598 million) in ODA to implement eight projects under the Vietnamese-German development cooperation umbrella in the coming years.

Brunhilde Vest, head of the Regional Development Policy-South East Asia Division of the German Federal Ministry for Economic Cooperation and Development, said the total of €289.2 million ($375.9 million) was higher than the €283.8 million ($368.9 million) Germany granted to Vietnam last year. Some €245 million ($318.5 million) of this new total comes in the form of 10-13 year preferential loans and the remainder is non-refundable.

“Though hurt by the global economic crisis, Germany has decided to give more assistance to Vietnam. We want to support your country to build a green economy, produce a high-quality workforce, protect natural resources and improve the quality of health care services in Vietnam,” Wunderlich said.

During Merkel’s visit, Vietnam and Germany lifted bilateral relationship to a strategic partnership via the clinching of the “Hanoi Joint Declaration: Vietnam and Germany–Strategic partnership for future”. – VIR

Tags: invest in Vietnam, Vietnam FDI, Vietnam FDI 2011, Vietnam investment

Posted by VBN on Dec 20 2011. Filed under Investment. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry