Bilateral trade between emerging Asian and European economies is strengthening. According to latest reports, about 28% of all trade between Vietnam and the EU can be ascribed to Germany. In the first two months of this year alone bilateral trade was pegged at US$1.28 billion – a 15.9% gain over the same period last year. This is reason enough for Vietnam to further strengthen its trade relations with the European superpower. In fact, this endeavor seems mutual with both countries deciding to jointly set up a Chamber of Commerce allowing entrepreneurs to make the most of emerging business opportunities.
According to Dr Vu Tien Loc, the president of the Vietnam Chamber of Commerce, high hopes are pinned to the new joint chamber of commerce that is on the cards. He opined that the new organization would provide a formal business platform via which trade between both countries can be strengthened. A few initiatives being planned as part of this endeavor are: a joint trade mission, a diplomatic communication, and a long-term investment agreements by German companies in Vietnam.
Germany, encouraged by impressive profits in Vietnam, is optimistic about the future trade relations between these two countries. While it is the prospects of profit for Germany, for Vietnam, the value addition lies largely in using German technology and products. Opportunities abound for German machinery manufacturers for industries such as manufacturing and pharmaceuticals. So much so, that 46% of all machines imported by Vietnam are from Germany.
According to market watchers, the opportunities presented for German machine manufacturers in the textile industry are immense. The other area where new avenues for growth are seen to be emerging are in the food processing sector, as Vietnam sees some encouraging developments in its food and beverages industry. German pharmaceutical companies rank third in the overall contribution to Vietnam’s drug and pharmaceutical industry.