German
Chancellor Angela Merkel and Vietnam’s Prime Minister Nguyen Tan Dung signed a
joint communiqué on strategic partnership for the two countries in Hanoi on
Tuesday.
On this special occasion, Elmar Dutt, chairman
of the German Business Association in Vietnam (GBA), elaborates what German
investors want and expect from Vietnam in an interview with The Saigon Times
Daily.
The Saigon
Times Daily: Increasing German investment in Vietnam is one of the major topics
discussed during German Chancellor Angela Merkel’s visit to Vietnam. Do you
think that many German investors are still really interested in this market
during this tough time?
- Elmar Dutt: German companies are not just
looking on short-term economic indicators but also long-term prospects and
incentives before they decide to invest in Vietnam. German companies who have
invested or consider investing here want long-term win-win benefits for all
stakeholders.
As Vietnam is changing its economic growth
model towards the development of a sustainable, environmentally-friendly
economy, and is seeking more high-tech rather than low-tech investments,
Germany will be the leading European strategic partner for mutual benefits
related to economic development. With three million small and medium-sized
enterprises and many of them operating in the high-tech supply industry,
Germany can offer a rich pool of options for Vietnamese companies to choose as
their partners.
You know,
the Vietnamese Government is pressing ahead with developing energy sources and
transfer of modern technology, and German companies are very strong in these
fields. Could you suggest how the two sides can match their demand and supply?
- Germany is keen to invest in high-tech,
research and development, science and technology and education in Vietnam. On
all these levels, Germany will be a strong partner to transfer its know-how to
Vietnam for the long-term benefits of Vietnam and its people. This will be also
manifested by the political will and agreement of Vietnam and Germany to build
a German House in HCMC which will be a lighthouse project to promote and
increase German investments to Vietnam, and foster cultural exchange between
the two countries.
Further on we at the GBA together with the
Vietnam German University encourage developing and creating a high-tech park
especially for German investors with special investment incentives for research
and development, science and technology and green high-tech manufacturing in
Binh Duong Province. Close to the Vietnam German University, the park is
expected to create synergies and cooperation for German high-tech companies and
this university.
In reality,
foreign direct investment flow into Vietnam is on the decline this year and a
number of foreign investors are scaling down their business scopes and scales
due to difficulties in Vietnam and globally. Are German companies in the same
situation in Vietnam?
- I think this is an overall common situation
and therefore also a problem for German companies who invest sustainably and
for a long term in Vietnam.
The GBA, which represents more than 160 German
companies in Vietnam, is concerned these days in general about the instability
of Vietnam’s economy because of the slow pace of fundamental important
economic, institutional and educational reforms.
German companies who want to invest in Vietnam
as their hub re-think their options: either to invest elsewhere in the ASEAN
region or delay their investments. A lot of German companies in Vietnam have
halted their future investments and expansion in order to consolidate their
operations and strategies, due to the current instability and negative trend of
the overall investment climate.
However, we are hopeful that the Government
can tackle all the fundamental economic and educational reforms as well as
current macro-economic problems with brave actions.
Reported by Mong Binh
Business & Investment Opportunities
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