Some 37% of German companies surveyed in 2015 confirmed plans to establish new operations or expand current operations in Vietnam, which has a rapidly growing market, Marko Walde, chief representative of the German Industry and Commerce Vietnam, told the Vietnam Investment Review.
Around 300 German companies, including big players such as Siemens, Mercedes and BMW, are already operating in Vietnam.
As the end of 2015, German businesses had 260 investment projects with a combined capital of $1.48 billion. The manufacturing and processing sector has attracted the most German capital, at $631 million. The power and utility sector was the second largest, followed by the sales and retail sector.
Mr. Marko Walde added that the EU-Vietnam Free Trade Agreement (EVFTA), whose negotiations were concluded late last year, will provide significant opportunities for companies on both sides by increasing market access for goods and services, and will help promote high-quality capital flow from the UE.
German companies have recognized the importance of the ASEAN Economic Community (AEC), which came into existence at the end of 2015, with some 600 million consumers and are positioning themselves to benefit from ASEAN’s long-term growth potential, said Mr. Walde, who is also chairman of the German-ASEAN Chamber Network.
“From our point of view, Vietnam will definitely benefit the most from the AEC, the EVFTA, and the TPP, and is uniquely well-positioned after having recently signed numerous trade agreements,” he said.