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The economic links between Germany and Vietnam continue to be intensified thanks to the free trade deal with the EU, and with the former willing to assist the latter in green development in particular.
German President Frank-Walter Steinmeier and his spouse arrive at Noi Bai International Airport. (Photo: VNA)
Both Vietnam’s Ministry of Foreign Affairs and the German Embassy to Vietnam last week announced that this week will see German President Frank-Walter Steinmeier pay a state visit to Vietnam.
With the trip, the federal president is underlining Germany’s goal of expanding and diversifying political and economic relations with Vietnam.
A business delegation will accompany the federal president, the embassy stated in a press release (see box).
Amplifying trade and investment ties with Vietnam is said to be one of the key goals of the visit.
While Germany is Vietnam’s number one trading partner in the European Union with a bilateral trading volume of $20 billion in 2022, its commercial partnership with Vietnam is the most important within ASEAN, with German exports worth $3.6 billion in 2022.
More than one year ago, Vietnam and Germany inked three new cooperation deals on national defence, vocational training, and also the energy transition, all as part of a boost for their existing strategic partnership.
Vietnam currently wants to realise its commitment to achieve net-zero emissions by 2050 with its own resources and international support.
Germany, the world’s fourth-largest industrial economy, has had a successful energy transition towards a green living model. It has a 100 per cent energy consumption target from renewable sources by 2035.
Germany has also made many major contributions to the process of creating and putting into effect European and global policies on climate protection.
The two nations agree that the EU-Vietnam Free Trade Agreement has and will continue to be a crucial driver of economic, trade, and investment ties. Under the agreement, which came into being in 2020, both countries have committed to promoting sustainable development and climate change mitigation.
This aligns perfectly with the renewable energy objectives of Vietnam and Germany, creating new avenues for bilateral cooperation in this sector.
According to statistics from Vietnam’s Ministry of Planning and Investment, currently, about 500 German companies are effectively operating in Vietnam, of which around 80 have manufacturing plants in the country, creating 47,000 jobs. Cumulatively as of December 20, German investors had 463 valid projects in Vietnam, registered at $2.68 billion.
These businesses massively contribute to the socioeconomic development in Vietnam and have therefore become very popular employers. The companies have settled in Vietnam to stay: they are interested in long-term commitments that benefit the local and international economy as well as the population.
For example, Magnetec, a German producer of electrics spare parts, last July completed procedures for investment registration at Nam Dinh Vu Industrial Park in the northern city of Haiphong.
Another company, Kärcher, a family-owned cleaning tech group, has recently selected Vietnam as its new production base overseas.
During his visit to Vietnam, German President Frank-Walter Steinmeier will meet Vietnamese President Vo Van Thuong, Prime Minister Pham Minh Chinh, and Chairman of the National Assembly Vuong Dinh Hue for political talks.
In addition, Steinmeier will visit the Confucian Temple of Literature and meet with trainees, teachers, and recruiters to learn more about the exchange of skilled workers between Vietnam and Germany. This will be followed by an exchange concerning migration biographies and experiences.
On the second day of his visit to Vietnam, President Steinmeier will fly to Ho Chi Minh City. There, he and a German business delegation will hold talks with local business representatives. Topics will include the prospects for economic and trade relations between the two countries. President Steinmeier will then visit the Vietnamese German University, where he will give a speech to students and teaching staff. Source: German Embassy to Vietnam
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By Thanh Thu
