Vietnam - Germany a potential market for Vietnamese exports

Germany is Vietnam’s sixth largest export markets after the US, Japan, China, Australia and Singapore, and it is the gateway to the huge, lucrative European market.

The European Union member country is the world’s second largest importer, mostly purchasing machinery, chemicals, tobaccos, food, beverage, metals and oil products.

Experts attending a workshop in Ho Chi Minh City on December 27 shared the view that Germany is a potential market for Vietnam’s key exports such as garments, leather shoes and seafood.

Do Thang Hai, head of the Trade Promotion Department under the Ministry of Industry and Trade, said Germany has become one of Vietnam’s major trading partners in Europe since 2007.

Germany has supported Vietnam’s call for an immediate end to the EU’s anti-dumping duties levied on Vietnamese shoes imported to the EU market. It has also shown interest in early negotiations of a Vietnam-EU free trade agreement (FTA).

These are positive signs opening up opportunities for Vietnamese businesses to increase exports to Germany, said Hai.

Vietnam exports 18 commodities to Germany, including footwear, garments, coffee, furniture, seafood, rucksacks, handbags, wallets, fine art articles, farm produce and hand-made embroideries. Most of industrial products are made under contracts while farm products are semi-processed.

However, Vietnam’s export earnings to Germany are too modest compared to those of China, Thailand and India.

Product quality and design will be a decisive factor in penetrating this demanding market, said Hai, adding that businesses should carefully explore the German consumer tastes, customs regulations and tax levels before shipping their products.

Thomas Hundt, the Germany Trade & Invest chief representative in Vietnam, pointed to the fact that to enter this market, businesses must meet both EU and German standards, and German regulations are stricter than the other. Top criteria are product quality, food safety and social responsibility.

He also suggested that Vietnamese businesses thoroughly explore their German partners before signing economic contracts. In addition, he said they should have long-term business strategies and have an adequate supply of commodities to meet large orders.

The Ministry of Industry and Trade reported that two-way trade between Vietnam and Germany in 2010 hit $4.115 billion, of which $2.37 billion was generated from Vietnamese exports. By the end of the third quarter of 2011, the two-way trade figure amounted to $3.99 billion.

AFP

Business & Investment Opportunities

YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Consulting, Investment and Management, focusing three main economic sectors: International PR; Healthcare & Wellness;and Tourism & Hospitality. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programs. Sign up with twitter to get news updates with @SaigonBusinessC. Thanks.