Business

EVFTA motivates German investors to scale up projects

The EU-Vietnam Free Trade Agreement (EVFTA) has brought about a range of opportunities for German investors in Vietnam after it came into force more than one year ago.
EVFTA motivates German investors to scale up projects ảnh 1Illustrative image (Source: VNA)
Hanoi (VNA) – The EU-Vietnam FreeTrade Agreement (EVFTA) has brought about a range of opportunities for Germaninvestors in Vietnam after it came into force more than one year ago.

Alexander Goetz, Chairman of the German BusinessAssociation (GBA) in Vietnam, said the deal will give a boost to the Vietnam-EUtrade in the coming years.

Vietnam is Germany’s biggest trade partner in theAssociation of Southeast Asian Nations (ASEAN), he said, adding the GBA hopesthat the removal of trade barriers will lead to an increase in investments.

He said the Southeast Asian nation has remainedattractive to producers thanks to market advantages, plus the EVFTA. Vietnam isone of the three top destinations for German firms to expand investments inAsia.

Bosch Group, which has operated in Vietnam more thana decade ago and become the biggest German investor in the country, said itwill further expand its presence in Vietnam following the agreement.

Managing Director of Bosch Vietnam Guru Mallikarjunasaid the EVFTA would promote Vietnam’s efforts in institutional reform,especially in environment, investment protection, labour standards andintellectual property.

During the first year of materialising theagreement, the Vietnamese Government has worked hard to streamlineadministrative procedures, step up investments in public administration, raisecompetitiveness of labourers, and perfect legal regulations to support theobservance of international standards.

Lukas Schoeneck, CEO at thyssenkrupp IndustrialSolutions (Vietnam), also acknowledged great opportunities thanks to tariffreduction and the removal of administrative barriers after the EVFTA was putinto place.

The legal system will be adjusted to increasetransparency, like that in bidding, he said, expressing his optimism about thedeal’s positive impacts on trade and investment ties between Vietnam and theEU.

Schoeneck also believed that there will be morecompanies to operate in Vietnam in the years to come, and the EVFTA willpositively influence the trend.

Statistics by the Ministry of Planning andInvestment show that as of August 2021, German investors poured 2.25 billionUSD into 405 projects in Vietnam, with major brands such as Bosch, Siemens,SAP, Mercedes-Benz, B. Braun, BASF, Bayer and Deutsche Bank.

Despite COVID-19, a number of German companies haveplanned to expand their investments in Vietnam, including tesa – a globalmanufacturer of tapes and self-adhesive solutions, and wpd AG.

According to the GBA Chairman, apart fromproduction, Vietnam has potential for infrastructure and energy development./.
VNA
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