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Vietnam among destinations with better investment guarantees from Germany

Vietnam has been listed among the 34 countries where German businesses will receive better investment guarantees from the Government of Germany when they invest there.
Vietnam among destinations with better investment guarantees from Germany ảnh 1Vietnam is one of the 34 countries where German investors will receive better investment guarantees from the Government of Germany. (Photo: VNA)
Berlin (VNA) – Vietnam has been listed among the 34countries where German businesses will receive better investment guarantees fromthe Government of Germany when they invest there.

The move by the German Government aims to ensure that itscountry’s economy is not dependent on a single market.

The Handelsblatt newspaper cited a paper from the FederalMinistry for Economic Affairs and Climate Actions as saying that the GermanGovernment has decided to improve the conditions of investment guarantees forselected countries and territories.

If companies invest in one of the 34 listed countries, thedeductible for the firms in the event of a loss will be halved. In addition,the warranty fees will also be reduced.

The 34 destinations consist of Vietnam, India, Indonesia,Malaysia, the Philippines and Thailand (South/Southeast Asia); Georgia,Kazakhstan and Uzbekistan (the Caucasus/Central Asia); Argentina, Brazil,Chile, Colombia and Peru (South America); Albania, Bosnia-Herzegovina, Kosovo,Montenegro, North Macedonia, Serbia and Turkey (Europe); and Egypt, Algeria,Ethiopia, Benin, Côte d'Ivoire, Ghana, Kenya, Morocco, Rwanda, Senegal, Togo, SouthAfrica and Tunisia (Africa).

Investment guarantees are centralto the foreign trade policy of Germany. If a company invests in adeveloping or emerging country, it can apply for insurance from the Federal Government. Ifthe company has to write off its investment due to expropriation, war or lawviolation in the country of its investment, the German Government willreimburse most of the loss.

Vietnam among destinations with better investment guarantees from Germany ảnh 2The Thai Hoa - Lien Son - Lien Hoa Industrial Park in Lap Thanh district, Vinh Phuc province (Photo: VNA)
As of June 2023, the Federal Governmentsecured around 30 billion EUR (31.7 billion USD) in investments.

The improvement of the conditionsof investment guarantees aims to encourage German businesses to invest in some countriesthat haven’t been tapped into.

FranziskaBrantner, State Secretary at the Federal Ministry for Economic Affairs andClimate Actions, said that with the new incentives, Germany looks to stronglysupport its economy which is in the diversification process to promote itsresilience to crises.

The list of the 34 countries and territories were made basingon internal and external experience reports, their geographically balancedlocations, and potential for German companies, according to the Handelsblatt newspaper./.
VNA
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