German and Dutch visits bolster ties

Germany is one of the largest and most successful investors in Vietnam Photo: Le Toan

According to the Ministry of Foreign Affairs, during PM Phuc’s July 5-8 stay in Germany, he will likely have meetings with the leaders of German firms such as BMW, Audi, Porsche, Mercedes-Benz, Siemens, Bosch, ThyssenKrupp, Loesche, Knauf, and Rieckermann. All are planning to expand operations in Vietnam.

More than 200 German firms will participate in a Germany-Vietnam business forum, chaired by PM Phuc and German Chancellor Angela Merkel. It is expected that many business-to-business co-operation deals with be inked, focused in the sectors of energy, heavy industry, IT, auto, and foodstuffs.

More than 10 co-operation deals will also be inked during this visit by localities and authorised agencies of both countries, centering on digitalisation, energy, and industrial equipment.

Marquardt Group, a German manufacturer of electro-mechanical and switching systems, is reportedly planning to build a factory to produce high-tech automotive components in the south-central city of Danang.

With total investment capital of around $39-50 million, the project will likely employ 500-600 local employees, and is planned for completion within the next two years.

Marquardt supplies components for world-famous auto brands like Mercedes-Benz, BMW and Volkswagen.

In another case, Bosch Vietnam managing director Vo Quang Hue told VIR that Vietnam is one of its focus markets in Southeast Asia. Bosch aims to develop the country as its regional strategic hub for research and development, and high-tech manufacturing.

In 2016, Bosch invested a further $22 million into its Dong Nai province Gasoline Systems plant for continuously variable transmission pushbelts.

“Vietnam has been rising as an attractive destination for foreign investment thanks to its economic, social, and political stability. The country has a skilled workforce, geographical proximity to other markets in Asia Pacific and India, as well as relatively good infrastructure facilities,” Hue said.

According to Ministry of Planning and Investment (MPI) statistics, as of June 2016, the number of German investment projects licensed in Vietnam was 265, registered at $1.36 billion. By June 20 this year, the number increased to 287 projects, registered at $1.68 billion.

While in Germany, PM Phuc will spend two days (July 7-8) attending the G20 Summit, where he is expected to highlight Vietnam’s role as host of the 2017 Asia-Pacific Economic Cooperation Summit and related activities, and the country’s efforts to restructure its economy.

During Phuc’s July 9-11 visit to the Netherlands – one of Europe’s largest investors in Vietnam – the prime minister is expected to meet with the heads of leading Dutch firms like Damen, Heineken, Unilever, Royal Dutch Shell, Foremost, Akzo Nobel Coating, and Philips.

These firms, which already have a substantial presence in Vietnam, will participate in a Vietnam-Netherlands business forum with 200 Dutch firms, to be chaired by Phuc and Dutch Prime Minister Mark Rutte.

It is expected that several co-operation deals will be inked by enterprises of both countries at this forum. Also, another 10 co-operation documents will likely be signed by both countries’ authorised agencies, focusing on training, agriculture, transport, environment, ports, food safety, and hygiene.

According to MPI statistics, as of June 20 this year, Vietnam had 292 Dutch projects, registered at $7.97 billion.