Germany, a gateway for Vietnamese exports to EUUpdate: 1/10/2014
Trade between Vietnam and Germany had increased by more than 7.5 times from 2010-2013, reaching almost US$7.7 billion in 2013
(VEN) - Germany has a strategic partnership with Vietnam and is a leading market in the European Union (EU). For this reason, it is considered to be a gateway for Vietnamese exports to the EU market.
The Ministry of Industry and Trade’s Vietnam Trade Promotion Agency Director Bui Huy Son said that trade between Vietnam and Germany has dynamically developed in recent years and had increased by more than 7.5 times from 2010-2013, reaching almost US$7.7 billion in 2013. The figure also hit US$4.191 billion in the first seven months of this year, with a trade surplus of almost US$1.5 billion for Vietnam.
Chairman and General Director of Germany Trade and Invest Benno Bunse said that the Vietnamese and German economies greatly supplement each other. Specifically, Germany mostly imports telephone accessories, seafood, textiles, garments and coffee from Vietnam, while Vietnam buys machinery, tools, spare parts, chemical products, motorized vehicles and assembled vehicles from this country.
Vietnam is fairly attractive to German investors. About 300 German businesses are currently operating in Vietnam with total investment capital of more than US$1 billion. Although the number of German businesses in Vietnam is small when compared with other countries in Northeast Asia, it is good that major German businesses entered the country with their modern technology. Vietnam has advantages in building sustainable trade and investment ties with Germany. Germany currently is Vietnam’s largest trade partner in the European Union (EU) accounting for 20 percent of Vietnam’s total exports to the EU. Following Singapore, Vietnam is Germany’s second strategic partner in Southeast Asia meaning that Vietnam has more competitive advantages than other countries in the region in terms of exports to Germany.
Bui Huy Son also said that Germany currently leads the economy in the EU. In the context that a Vietnam-EU Free Trade Agreement (FTA) is scheduled for conclusion by the end of this year, Germany will help Vietnamese businesses better make the most of preferences from the agreement. “Germany is an important gateway for Vietnamese goods to enter other markets in the region,” Bui Huy Son said.
To easily enter the market in Germany without tax and technical barriers, Germany Chamber of Commerce and Industry in Vietnam Chief Representative Marko Walde suggested that Vietnamese businesses not immediately open their companies but look for small and medium-sized businesses in Germany which will help them faster access the market and distribution networks in Germany. Also, it is not necessary to thoroughly understand German business law. Joining trade fairs will also make it possible for Vietnamese businesses to learn about the German market and meet potential partners.
With his years of accompanying Vietnamese businesses to promote seafood exports to Germany, Vietnam Small and Medium Industrial Enterprises Association Deputy Chairman Vu Huy Thu said that the German market has a high demand for quality of goods and complicated technical standards. For this reason, apart from understanding the needs of the German market and their supply capacity, Vietnamese businesses need to keep abreast of German technical standards and tariff rates. However, to save time they could invite experts from Germany and the EU to Vietnam to provide update on German and EU technical standards and trade requirements./.
The Ministry of Industry and Trade’s Vietnam Trade Promotion Agency Director Bui Huy Son:
The Germany Chamber of Commerce and Industry in Vietnam and the Ministry of Industry and Trade scheduled to launch a conference of German businesses in Asia-Pacific from November 20-23 hosting 600-700 German and regional businesses and providing a good opportunity for Vietnamese businesses to build partnerships.
By Bui Viet