APK to bolster investment

How important is the APK event to German firms in Asia-Pacific?

The APK has been organised biannually in Asia since 1986 and has evolved into one of the largest networking events in the region attracting both political and business leaders. Previous APKs were hosted in India, Singapore, Korea, Thailand, Japan, Malaysia, China, Australia and Indonesia.

As one of the most important business partners of Germany in the region, Vietnam will host the 14th APK in November for the very first time. With more than 700 estimated participants, the APK is a platform for the exchange of ideas for Germany and Asia to explore investment opportunities and to exchange business experiences. Among the high-ranking guests and speakers are Nguyen Tan Dung, Prime Minister of Vietnam, Vu Huy Hoang, Minister of Industry and Trade, Bui Quang Vinh, Minister of Planning and Investment, Hubert Lienhard, Chairman of the Asia-Pacific Committee of German Business, Sigmar Gabriel, German Federal Minister for Economic Affairs and Energy and many more.

As part of the conference’s Understanding trends and perspectives theme, the 14th APK is expected to indentify industries and trends of the future, where co-operation between businesses in Germany and Asia-Pacific can thrive. The conferences will follow with multiple working breakfasts, parallel discussion panels, plenary sessions and evening receptions, taking place in different locations outside the conference, providing networking opportunities for the local and foreign guests.

In my view the APK will highlight Germany as a confident, stable and strong trading partner to respond to new challenges in the Asia-Pacific region. There are so many factors that make Germany an excellent destination for investment – a highly-skilled work force, solid infrastructure, a positive investment climate and the fact that it provides access to the European market.

Do German firms consider Asia-Pacfic as a strategic market? And what is the importance of Vietnam as part of Asia-Pacfic in the eyes of German firms?

The Asia-Pacific region is a fast changing high-growth region and has an important role in stimulating the world economy. Dynamism, change, growth, these are words for Asia so I am convinced that the Asian market will become more and more important for German companies.

Germany considers Vietnam an important partner inside ASEAN. Thanks to flexible economic policies and a stable political situation, Vietnam is now one of the leading investment destinations in ASEAN. We are very optimistic about a future signing of the Free Trade Agreement between EU and Vietnam. The 14th APK will be a new important step to enhance political partnership between Asia and Europe. As organiser of the conference, I really expect a large number of German and Asian companies to share best practices and lessons so as to deepen co-operation throughout the various industries. Through the APK conference, we also want to draw attention to Germany as a destination for investment and its role as an access point to the European market.

What are the trade and investment fields in Vietnam that German investors are most interested in at the moment?

Trade and economic exchanges between the two countries grew to $7.7 billion in 2013 (18 per cent higher than in 2012), with Vietnamese exports to Germany growing by 15 per cent. Top products exported from Germany were machinery, transport equipment, pharmaceutical products, chemical products, and vehicles. Major items imported to Germany include telephones, textiles, footwear, and seafood. German direct investment in Vietnam surpassed $1 billion. There are more than 300 German companies in Vietnam, which are creating jobs. The most attractive sectors are manufacturing, technology, IT, construction, education, and finance.

Germany is also keen to invest in hi-tech industries and sectors like rural development, green technologies, renewable energies, and smart engineering solutions as well as in education and training. To meet these important issues for the qualification of the workforce, we have co-operated with German investors in Vietnam now launching a German – Vietnamese vocational training programme to meet the demand of German companies, German standards and giving Vietnamese students many chances to practice and experiences on the job in order to have a better trained and qualified workforce.

What is the role of the Delegate of German Industry and Commerce in Vietnam in the development of Germany-Vietnam trade and investment relations to date and what will you do in the coming years to bolster the relations?

Our offices in Hanoi (1993) and in Ho Chi Minh City (2005) have the public mandate to promote bilateral trade and investment between Germany and Vietnam. We have supported many German companies in doing business, searching partners and suitable investment locations in Vietnam as well as Vietnamese companies in developing their market in Germany and Europe. With the role as official representative of Messe Berlin, Messe Duesseldorf, Messe Nuernberg and Spielwarenmesser to provide consulting services to Vietnam’s firms for their successful trade fair participants in Germany. In the future, we would continue to closely work with our valued partners so as to enhance the strategic relationship by developing important investment projects in Vietnam. The Vietnam - EU FTA will open up big opportunities for Vietnam enterprises to boost their export activities to Germany, this signing is at the same time a challenge and a chance for Vietnam. The agreement has a tremendous potential to increase the trade volume and to create new jobs, both in the EU and in Vietnam.