Vietnam, one of Germany’s most important partners in Asia

The Federal Republic of Germany, the largest and most important market in the EU, is one of leading countries investing in Vietnam. Known as “the world export champion” with an export volume of about 969 billion euros, Germany is a real “global player”.

Since the EU expansion eastwards, there has been a noticeable increase in trade and economic relations with emerging countries in Asia. For Germany, Vietnam is one of the most important partners in Asia at this time. On the occasion of the 35th anniversary of the diplomatic relation between Vietnam and Germany, Vietnam Economic News’ My Phung had a chance to interview Conrad Cappell, the consul general of Germany in Ho Chi Minh City, about the economic prosperity and development cooperation between the two countries.

This year marks the 35th anniversary of the diplomatic relation between Vietnam and Germany. Could you highlight some success in cooperation between the two countries during last years and special activities/events in 2010?

On the occasion of the 35th anniversary of the diplomatic relation between Vietnam and Germany, the Vietnamese Prime Minister and the German Chancellor have decided to organize a German Year in Vietnam and a Vietnamese Year in Germany in 2010. During the German Year in Vietnam, more than 50 events in the broad spectrum of our excellent relations with Vietnam will be covered from classic music performance by the Berlin Philharmonic Orchestra, pop music, an economic conference on climate change, work shops on the development of mega cities, environmental protection, waste water treatment to life style events such as fashion shows, wine and October festivals. All these events will highlight the potential of Germany and underscore the broad spectrum of intensive bilateral cooperation. In Ho Chi Minh City, a German International School was established for German speaking foreign students. The Vietnamese-German University operating since September 2008 has offered four master courses and will continue to develop more courses. This university will be the first of four elite universities in Vietnam. The construction of a German House in Ho Chi Minh City is planned, which will assemble all Germany-related activities such as Consulate General, Goethe Institute, German Business Association, German Chamber of Commerce and Industry, and German company offices under one roof, thus giving our Vietnamese friends “the German address” in Ho Chi Minh City. German companies look forward to cooperating in the construction of a subway in Ho Chi Minh City, hopefully starting next year.

Could you tell about several German ODA programs for Vietnam?

Vietnam is one of Germany’s most important partners in development cooperation in Asia. Since 1990 Germany has committed more than one billion euros worth of ODA for Vietnam. Germany and Vietnam have agreed on three priority areas of development cooperation: Sustainable Economic Development and Vocational Training (Vietnam is focusing on achieving sustainable and socially oriented economic growth. Germany is assisting Vietnam in these efforts, particularly in the areas of macroeconomic reform and vocational training through capacity building at all levels and facilitation of investment in modern institutions), Environmental Policy, Natural Resources and Urban Development (Vietnam’s rapid economic growth and climate change entails big environmental challenges. In order to help tackling those challenges, Germany has supported Vietnam with various projects and programs, focusing on climate change adaptation and mitigation, and sustainable forestry. Urban development including waste and wastewater treatment, is also part of the German portfolio) and Health (Over the last few years, the general level of health in Vietnam has improved considerably. However, the poor and disadvantaged, as well as people living in remote regions have benefited relatively little from this positive development. To help improve the situation, Germany and Vietnam have focused on improving provincial health systems including basic health care).

How do you assess the Vietnamese investment climate for German companies doing business here ?

Investment conditions and investment climate in Vietnam are very favorable. Metro Cash & Carry is building its 10th market in Vietnam. More and more German companies have found that it is advantageous to produce in Vietnam due to strategic locations. It would certainly help German companies if administrative procedures for investments, productions and visa for expatriates could be simplified.

What do you think about the future for development cooperation between the two countries, especially in the economic field?

Germany has been and is going to be a strong and reliable partner for Vietnam, also in the area of development cooperation. In March 2010, German Development Minister Dirk Niebel paid a visit to Vietnam giving fresh impetus to cooperation, especially in the areas of climate protection and technical and vocational training. To achieve sustainable and socially balanced economic growth, the expanding economy urgently needs more skilled workers. Therefore, Germany will support programs to promote vocational schools by reforming curricula and adapting them to the needs of the labor market. Furthermore, they are receiving assistance with procurement of equipment. Training and upgrading programs are being developed for teaching staff. Luckily, the awareness of the importance of vocational training for sustainable economic development in Vietnam is rising. – VEN

Tags: Vietnam Germany trade