Vietnam - A strong partner to transfer know-how

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

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