Investment Profile Germany Investments Profile in Vietnam
2 Germany Investments Profile in Vietnam
Contents Germany Investments Profile in Vietnam... 1 Foreword... 4 VIETNAM... 4 GDP Growth... 6 Population... 6 Financial Health... 7 Key Sector Strengths... 7 Opportunities... 8 Overview of Key Legal Issues... 10 VIETNAM- GERMANY RELATIONS... 11 Key German Organizations in Vietnam... 13 Key Vietnamese Organizations in Germany... 13 ODA and other Government Assistance... 13 German Investment Activity in Vietnam... 14 Key Agreements... 16 Recent Press Announcements... 17 LNT & PARTNERS PROFILE... 18 About Us... 19 Our Team... 19 Our Practice Groups... 20 Our Rankings... 21 Our Awards... 22 Our Clients... 23 International Cooperation... 24 Our Strategic Partners... 25 Appendix 1... 18 Appendix 2... 28 3 Germany Investments Profile in Vietnam
Foreword Significant progress has been made in recent years towards developing strategic ties between Germany and Vietnam, as Vietnam cements its position as one of Germany s key economic partners. As its economy recovers, its trade regime becomes more open, and its rich resources and labor market draw regional interest, foreign investment into Vietnam is expected to accelerate at a rapid rate. Germany is currently Vietnam s largest EU trade partner, with bilateral trade between the two countries reaching 9.4 billion USD in 2012 and averaging a growth rate of 25-30% per annum. The support of the 2011 EU-Vietnam Free Trade Agreement has secured Germany s continued interest in Vietnam. Today, there is now a significant presence of German investors in Vietnam. In 2013 an agreement was reached between the two countries to develop the German House, a public facility dedicated to enhancing Germany-Vietnam ties and boosting economic activity between the countries. Germany s contributions also include two subway line projects, the development of waste water treatment facilities and the establishment of vocational schools and universities in Vietnam. Vietnam has reciprocated with Prime Minister, Nguyen Tan Dung, emphasizing that efforts to promote further cooperation with Germany is of key importance to both countries. We hope this profile will give you some insights into why German businesses are keen on expanding their operations in Vietnam and how your business will benefit from entering this country of opportunities. 4 Germany Investments Profile in Vietnam
5 Germany Investments Profile in Vietnam VIETNAM
GDP Growth Thanks to its strengthening export-oriented economy, Vietnam s GDP has been growing year by year, much of which has been driven by key industries such as manufacturing, electronics and agriculture. Graph compiled with data taken from The World Bank As the Vietnamese Government continues to implement its roadmap of liberalizing the country s economy, GDP growth is expected to continue to remain stable and/or increase. Vietnam is expected to benefit from the EU-Vietnam Free Trade Agreement. Furthermore, following Vietnam s much awaited entry into the Trans-Pacific Partnership ( TPP ) Agreement in late 2014 or early 2015, which will effectively tear down trade barriers with Vietnam s key trading partners, GDP is expected to grow rapidly with the anticipated increase in exports. Population Vietnam is home to approximately 90 million people and is one of Asia s most densely populated countries. Over 70% of the population resides in rural areas, which rely primarily on agricultural production. Vietnam has a young population, with working-age adults representing over 50% of the population. In addition, with the influence of the western world becoming more and more pronounced, the younger generation is increasingly aspiring to achieve affluent lifestyles. And with the introduction of jobs and an increase in wages, young people have more disposable income, creating an ideal market for new products and services. 6 Germany Investments Profile in Vietnam
This youthful society presents an opportunity to foreign investors, both in terms of potential markets and also in terms of human resources. The youth of Vietnam are better educated than their predecessors and they have the drive to achieve a higher standard of living, which makes them an eager and diligent workforce. Financial Health The Vietnamese Government has taken efforts to curb the country s recent high inflation rates, which have hampered investment progress in the past several years. These efforts have been successful and by the end of 2013, Vietnam s average annual inflation rate stood at 6.60%, the lowest it has been in 10 years. As the Government continues rolling out its fiscal policies to slash inflation, which has decreased further as of early 2014, investor interest is expected to rise and German businesses will benefit from the ensuing economic growth. The Government s efforts to achieve monetary stability have also been successful. The exchange rate of Vietnam s official currency, the Vietnamese Dong (VND), has remained steady over the course of the past couple of years. Investors can take comfort in that the days of instability in Vietnam s economy have passed. A testament to the country s positive financial outlook is the year-by-year increase in the Vietnam Stock Market (VN-Index) and the Government s continued efforts to tackle its number of bad debts. Key Sector Strengths Electronics Manufacturing Vietnam s large supply of low wage workers and favorable tax incentives for the industry have attracted a growing number of foreign companies assembling or manufacturing electronics in the country. In 2013, computer and consumer electronics products and components dominated Vietnam s total exports. Textiles The country also boasts a strong textiles industry and the demand for these products is expected to increase following entrance into the TPP and EU-Vietnam Free Trade Agreement. Vietnam s liberalization of business lines in this sector has led to unprecedented investor interest to satisfy the growing demand from U.S., Japanese and European markets. Growth is expected to jump from 12-13% to 15-20%, reaching 20 billion USD in 2017 and projected to surge to 50 billion USD by 2025. 7 Germany Investments Profile in Vietnam
Agriculture With over 70% of the population living in rural areas, exports in agriculture remain one of Vietnam s major contributors of GDP. The country s tropical climate and unique geographical location have made it ideal for producing certain crops. Today, Vietnam is one of the world s largest exporters of rice, cashew nuts, coffee and black pepper. Other major exports of the country include seafood, rubber and wooden products. Banking While the Vietnamese banking industry has traditionally been restrictive against prospective foreign stakeholders, the Government has recently passed new regulations that will allow investors to acquire a larger stake in the country s national banks. The loosening of these restrictions is expected to drive further interest in this industry as large infusions of capital will be needed to upgrade the systems, operations and branches of the current commercial and retail banking system. Logistics The growth potential of Vietnam s logistics industry has been expanding as a result of the country s increasing export turnover. Foreign interest in this industry has been supported by recent figures provided by the Deputy Minister for Transport, who cited that local logistics providers are only able to handle 20% of market demand (with the remaining 80% being handled by foreign companies). Tourism For services, Vietnam s tourism industry has attracted some of the largest FDI commitments into the country. In 2012, Vietnam welcomed over 7 million visitors. These figures, which are growing, make tourism a key growth industry driven by strong global and domestic demand. Opportunities While challenges remain in the country s regulatory framework, Vietnam remains an attractive destination for foreign investment not least because of the Government s efforts to open its market to investors. Today, almost all investment sectors in the country are open to foreign investors (many as a result of the WTO commitments) and the rollout of further market openings is expected to take place within the next 1-2 years. On the agenda is also Vietnam s long awaited entrance into the Trans-Pacific Partnership Agreement (TPP) and EU-Vietnam 8 Germany Investments Profile in Vietnam
Free Trade Agreement, the conclusion of which is expected to considerably drive demand for commodities from the country. It is, therefore, no surprise that in the 2014 ASEAN Business Outlook Survey by the U.S. Chamber of Commerce, Vietnam was ranked as the second most popular ASEAN destination for investment (after Indonesia). As a positive outlook, 85% of survey respondents in Vietnam further expected profits to increase in 2014. The total amount of FDI has been increasing since 2011 and it is expected to continue in years to come. 2008 2009 2010 2011 2012 2013 Total FDI influx into Vietnam (million USD) Total number of FDI projects in Vietnam 15,428.9 16,345.4 12,100.9 9,914.5 7,854.1 14,272.4 1171 839 833 919 1100 1275 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 FDI Trend (2008-2013) 2008 2009 2010 2011 2012 2013 1400 1200 1000 800 600 400 200 0 Total FDI influx into Vietnam (US$ mil.) Total number of FDI projects in Vietnam This positive outlook, which is driven by a stabilizing economy, a liberalization of the market and a dynamic labor force, has placed Vietnam on the radar as an emerging market to watch. 9 Germany Investments Profile in Vietnam
Overview of Key Legal Issues Investment Process in Vietnam In 2007, Vietnam acceded to the WTO, which expanded foreign investors access to Vietnamese markets. Vietnam s WTO commitments have drastically altered the investment environment by largely superseding the protective legislation which was one of the greatest challenges to doing business in Vietnam. Since accession, according to the Ministry of Finance, wholly foreign-owned entities have become the most common legal structure for FDI, followed by joint ventures and then BOT, BT, BTA and BCC contract arrangements. Licenses for foreign investors will be largely granted on the discretion of the ministries. The process may take approximately anywhere from 3 months (average time for the service sector) to 12 months (for large-scale projects needing prime ministerial approval). Restrictions Prior to investing in Vietnam, certain requirements, such as demonstration of financial capacity and industry experience, will generally need to be fulfilled to the satisfaction of the authorities. Furthermore, while investment in a vast majority of sectors in Vietnam is open nowadays, certain sectors will demand for additional hurdles to be met. For example, projects in sectors that may have an adverse environmental effect (e.g., manufacturing) will likely require an environmental impact assessment report. FDI approval for special services, such as banking, insurance, finance, and securities, will also be subject to higher scrutiny by the authorities, and satisfaction of more stringent conditions may be needed Taxation There is a double tax avoidance agreement in force between Vietnam and Germany, which allows tax paid in one of these countries to be offset against taxes payable in the other. Companies are generally subject to the corporate tax rate of 22%, which is applied from January 1 st, 2014 until December 31 st, 2015. From January 1 st, 2016 onwards, this tax rate will be lowered to 20%. 10 Germany Investments Profile in Vietnam
Investors may also be able to enjoy preferential tax rates (or even tax exemptions) if they satisfy some of the range of eligibility requirements set out under Vietnamese law (e.g., by operating projects in encouraged sectors). Legal Framework However, Vietnamese laws are sometimes vague, ambiguous and inconsistent. This may, at times, lead to inconsistent applications of the law by the authorities. For this reason, we advise prospective investors to consult with the relevant authorities prior to carrying out their investment projects if any regulatory ambiguity or inconsistency arise. For more information on Vietnam s legal landscape pertaining to FDI, please refer to the 2014 IFLR Report by Bui Ngoc Hong, Do Huy and Nguyen Xuan Thuy at Appendix 3. 11 Germany Investments Profile in Vietnam
VIETNAM - GERMANY RELATIONS 12 Germany Investments Profile in Vietnam
Key German Organizations in Vietnam German interest in Vietnam is bolstered by the strong financial, professional and technical support provided by various organizations in the country. These organizations have assisted in facilitating the provision of support, such as official development assistance (ODA) for energy and environmental programs, which has been well-received by the Vietnamese Government. The following key organizations are expected to play a more active role in Vietnam s economic development in the future, which will act as a catalyst to boost German investment: 1. German Business Association (GBA) 2. German General Consulate 3. German Industry and Commerce in Vietnam (GICV) 4. European Chamber of Commerce (EuroCham) For more information on these organizations, please refer to Appendix 1. Key Vietnamese Organizations in Germany German investors who are interested in Vietnam may seek information from one of the numerous dedicated Vietnam-focused business organizations in Germany, including: 1. German Vietnamese Society (GVS) 2. German Trade and Business (GTB) 3. Consulate General of Vietnam For more information on these organizations, please refer to Appendix 1. Otherwise, in Germany, Vietnamese embassies are located in Berlin and Frankfurt. ODA and other Government Assistance As part of the German Government s pledge to assist developing countries in various areas, particularly in the clean energy sector and environmental preservation projects, ODA loans and grants have been provided to numerous developing countries (since 1990, donations of approximately 1 billion USD have been made to Southeast Asian countries). Vietnam is one of the grateful beneficiaries of the German Government s ODA and thanks to this assistance, the country has seen the successful completion of major and much-needed infrastructure projects. 13 Germany Investments Profile in Vietnam
Some recent projects that are on the way to or have been successfully established through ODA assistance include the following: Project 2012 2011 2010 As per the Financial Cooperation Agreement signed by both Vietnam and Germany, Germany has provided 22 million EUR in the form of ODA loans for technical assistance, EUR 5 million in ODA grants and 245million EUR as development loans to Vietnam. Germany has provided 118 million USD from 2011 to 2012 (OECD source) Germany had contributed to the success of the following ongoing or completed projects: Metro Line 2 (212 million EUR) Combating Climate Change (7 million USD) Vocational Training Center (400 million USD) Pledged ODA (372 million USD for two years) Flood Protection in Mekong Delta (1.3 million USD) Business development for the poor in Cao Bang and Ben Tre Provinces (41.86 million USD) Grant for water quality/quantity monitoring system (1.1 million EUR) German Investment Activity in Vietnam Many German businesses have expanded their operations into Vietnam, as German FDI into Vietnam has increased considerably from 2008 to 2013: 2008 2009 2010 2011 2012 2013 FDI influx from Germany (million USD) Number of German FDI projects 56.2 111 N/A N/A 186.3 106.2 16 15 N/A N/A 20 21 14 Germany Investments Profile in Vietnam
The following lists the 17 largest German companies that have made Vietnam a critical investment partner: No. COMPANY INDUSTRY 1 BMW Automobile 2 Mercedes-Benz Automobile 3 Audi Automobile 4 Porsche Automobile 5 Commerzbank Banking and Finance 6 Deutsche Bank Banking and Finance 7 Lufthansa Logistics 8 Häfele Furniture 9 Kohler Furniture 10 Bayer Medical Machinery 15 Germany Investments Profile in Vietnam
11 Siemens Vietnam Electrical Machinery 12 Pepperl+Fuchs Electrical Machinery 13 Rödl & Partner Complementary 14 TÜV Rheinland Vietnam Complementary 15 Windsor Property Management Group Real Estate 16 B. Braun Vietnam Pharmaceutical 17 Hapag-Lloyd Shipping Key Agreements The promotion of German investment into Vietnam is facilitated by the strong bilateral investment relations between the two countries. This relationship has been encapsulated by multiple bilateral agreements and treaties. Some key agreements include: (i) Bilateral Investment Treaty (1993) Signed in 1993 The Bilateral Investment Treaty between Vietnam and Germany was signed in 1993, which effectively allowed both countries to invest in each other while enjoying protection of their assets under the agreement. Under this treaty, German investors will enjoy treatment no less favorable than local investors. (ii) EU-Vietnam Free Trade Agreement (Prospective) Pending The FTA between EU and Vietnam went into its fifth round of negotiations in November 2013. This FTA is expected to promote the already strong trade relationships between Vietnam and Germany (as well as other EU states). The agreement is expected to be finalized later in 2014. (iii) Hanoi Declaration 2011 Signed on October 11 th, 2011 The Hanoi Declaration was signed between Vietnam, Germany and 10 other countries with the aim of enhancing their strategic relationships in key areas such as political cooperation, trade and investment, legal development, environmental protection, 16 Germany Investments Profile in Vietnam
education, technology, culture, media and society. The action plan that has been implemented includes developing a German House in Ho Chi Minh City, the construction of subway lines in Ho Chi Minh City and the development of waste water treatment programs. Recent Press Announcements The strong presence of German investors in or coming to Vietnam is marked by the frequent press reports of major deals. For example, as of March 2014, the following major announcements hit headlines throughout Vietnam. (i) Mercedes-Benz Expands Operation In Vietnam (March 16 th, 2014) (ii) German firms explore opportunities in Viet Nam (March 8 th, 2014) (iii) Germany- Vietnam s lucrative export market to EU (February 20 th, 2014) (iv) Siemens to commercialize fuel-saving bus project this year (January 16 th, 2014) (v) Deutsche Bank still keeps stake in HAGL (December 12 th, 2013) (vi) Germany a big trade partner of Vietnam (December 9 th, 2013) (vii) German Firms Seek Opportunities in Vietnam (June 3 rd, 2013) (viii) A milestone in German-Vietnamese relations (March 13 th, 2013) For more information on these press releases, please refer to Appendix 2. 17 Germany Investments Profile in Vietnam
LNT & PARTNERS PROFILE 18 Germany Investments Profile in Vietnam
About Us LNT & PARTNERS is a leading full-service independently ranked local law firm in Vietnam with offices in Ho Chi Minh City, Hanoi, Hong Kong (affiliate), and San Francisco. The firm is among Vietnam s most prominent, representing a wide range of multinational and domestic clients, including Fortune Global 500 companies as well as well-known Vietnamese listed companies on a variety of business and investment matters. Our Team Our Lawyers Mr. Hong Bui Practice areas Compliance Foreign Investment M&A Mr. Huy Do Practice areas Intellectual Property Dispute Resolution Antitrust/ Competition Ms. Quyen Hoang Practice areas Corporate Employment & Benefits Foreign Investment M&A Dr. Net Le Practice areas Banking & Finance M&A Tax Dr. Tuan Nguyen Practice areas Antitrust/ Competition Bankruptcy Employment & Benefits M&A Dr. Vinh Nguyen Practice areas Dispute Resolution Employment & Benefits Tax Mr. Binh Tran Practice areas Real Estate/ Infrastructure Dispute Resolution Employment & Benefits Mr. Su Tran Practice areas Dispute Resolution Real Estate/ Infrastructure Banking & Finance 19 Germany Investments Profile in Vietnam
Our Of Counsel and Senior Advisor Mr. Kiyoshi Hirasawa Practice areas Japan Practice Corporate, M&A Foreign Investment Dr. Sy Chung Pham Practice areas Corporate Compliance Foreign Investment M&A Our Practice Groups LNT & PARTNERS has domain expertise in key legal disciplines organized into five Practice Groups: (i) (ii) (iii) (iv) (v) Corporate Group: Our highly-regarded corporate team regularly handle M&A deals, advise on complicated business licenses, guide investors with their inbound and outbound investments, and navigate regulatory compliance issues (including in matters of competition, labor and taxation) to deliver commercially-practical solutions to our clients. Dispute Resolution Group: Our award-winning dispute resolution lawyers, which include two former judges, have represented major companies in both court and international arbitral proceedings Banking and Finance Group: Our banking and finance team has been at the forefront of millions of dollars worth of financial transactions for large financial institutions, funds, and private companies. Intellectual Property/TMT Group: Our IP/TMT professionals have extensive experience in advising and representing major clients in some of the most complex and high-profile IP related matters in various industries, including biotech, pharmaceutical, electronics and software. Real Estate and Infrastructure Group: Our real estate and infrastructure team has been behind some of Vietnam s largest development projects. 20 Germany Investments Profile in Vietnam
Our Rankings PUBLICATION PRACTICE AREAS RANKING YEAR Banking and Finance Leading Lawyers 2013 / 2012 Asia Pacific Legal 500 Corporate/ M&A Leading Lawyers 2013 / 2012 Dispute Settlement Leading Lawyers 2013 / 2012 Tax Leading Lawyers 2013 / 2012 Banking and Finance Vietnam Leading Law Firm 2013 / 2012 / 2011 / 2010 Chambers and partners Corporate/ M&A Vietnam Leading Law Firm 2013 / 2012 / 2011 / 2010 / 2009 Projects, Infrastructure & Energy Vietnam Leading Law Firm 2013 / 2012 International Financial Law Review (IFLR) PLC Which Lawyer? Banking and Finance Notable 2013 / 2012 Mergers & Acquisitions Notable 2013 / 2012 Project Finance Leading Lawyers 2012 / 2011 Recommended Law Firm 2012 / 2011 21 Germany Investments Profile in Vietnam
Our Awards Vietnam Deal Firm of the Year 2014 Asia Legal Business, a Thomson Reuters Company, SE Asia Awards 2014 Full Service Law Firm of the Year 2014 Vietnam Intellectual Property Innovators of the Year Vietnam Commitment to Cross-Border Investment Vietnam - Acquisition International Leading Law Firm 2014 Asia Pacific Legal 500 Recognised Firm 2014 International Financial Law Review Corporate Finance Law Firm of the Year in Vietnam 2014 Corporate Intl Magazine Global Award ALB Award Deal Firm of the Year Finalist 2013, 2012 Employer of Choice 2012 ALB 2 nd position Most Trusted Law Firm of the Year Lawyers World Magazine 22 Germany Investments Profile in Vietnam
Our Clients Our partners have had the privilege of representing multiple German clients, from major conglomerates to branch offices, in a broad spectrum of industries and matters, including: 23 Germany Investments Profile in Vietnam
International Cooperation The Firm s partners have established strong relationships with attorneys at international law firms such as: US Law Firms European Law Firms Asian Law Firms 24 Germany Investments Profile in Vietnam
Our Strategic Partners LNT & PARTNERS has developed an active presence across a broad range of industries through its strategic partnerships with leading industry publications and sector groups, including: Vietnam Investment Review Quang Trung Software City Colliers International Vietnam 25 Germany Investments Profile in Vietnam
Appendix 1 Key German Organizations in Vietnam *1 1. European Chamber of Commerce Ho Chi Minh City office Address: The Landmark, Room 2B, 15th Floor 5B Ton Duc Thang, District 1, Ho Chi Minh City VIETNAM Tel: (84-8)-3827-2715 Fax: (84-8)-3827-2743 E-mail: info-hcm@eurochamvn.org URL: http://www.eurochamvn.org 2. German Business Association Ho Chi Minh City office Address: Somerset Chancellor Court, 5th Floor 21-23 Nguyen Thi Minh Khai Street, District 1, Ho Chi Minh City VIETNAM Tel: (84-8)-3823-9775 Fax: (84-8)-3823-8909 E-mail: info@gba-vietnam.org URL: http://www.gba-vietnam.org 3. German Consulate General Address: 126 Nguyen Dinh Chieu, District 3 Ho Chi Minh City, Vietnam Tel: (+84) 8 38 29 19 67 Fax: (+84) 8 38 23 19 19 URL: www.ho-chi-minh-stadt.diplo.de 4. German Industry and Commerce in Vietnam Hanoi office Address: 1303 Vietcombank Tower 198 Tran Quang Khai, Hanoi VIETNAM Tel: (84-4)-3825-1420 Fax: (84-4)-3825-1422 E-mail: info@vietnam.ahk.de URL: http://www.vietnam.ahk.de 26 Germany Investments Profile in Vietnam
Key Organizations in Germany Representing Vietnam*2 1. Consulate General of Vietnam (Frankfurt) Address: Villa Hanoi, Kennedy-Allee 49, 60596 Frankfurt am Main. GERMANY Tel : 49-69-795 336 50 Fax: 49-69-795 336 511 E-mail : tlsqvietnam_frankfurt@mofa.gov.vn, gkvietnam_frankfurt@mofa.gov.vn URL: http://www.vietnamconsulate-frankfurt.org/en 2. German Trade and Business Berlin office Address: Friedrichstraße 60 10117 Berlin GERMANY Tel: 49-30-200-099-0 Fax: 49-30-200-099-812 E-mail: asien@gtai.de URL: http://www.gtai.de/gtai/navigation/en/invest.html 3. Vietnamese Embassy (Berlin) Address: Elsenstrasse 3 12435 Berlin GERMANY Tel: (4930) 5363 0108; 5363 0113; 5363 0119 Fax: (4930) 5363 0100 E-mail: info@vietnambotschaft.org URL: http://www.vietnambotschaft.org/ 4. German Vietnamese Society Berlin office Address: Marie Straße 19/20 10117 Berlin GERMANY Tel: 030-2804-0990 Fax: 030-2804-0993 E-mail: buero@vietnam-dvg.de URL: http://vietnam-dvg.de 5. Vietnamese Embassy (Frankfurt) Address: Siesmayerstr. 10 60323 Frankfurt/M GERMANY Tel: (00-49 - 69) 7 Fax: (00-49 - 69) 7 E-mail: tlsqvietnam_framkfurt@mofa.gov.vn URL: http://www.mofa.gov.vn/vi/ 27 Germany Investments Profile in Vietnam
Appendix 2 News about Vietnam *2 March 16 th, 2014 Mercedes-Benz Expands Operation In Vietnam http://businesstimes.com.vn/mercedes-benz-expands-operation-vietnam/ Mercedes-Benz expands operation in Vietnam Mercedes Benz, currently in its second year of operations in Vietnam, has decided to raise its registered capital by an additional US$10 million to US$30 million. Mercedes-Benz Director General Michael Behrens said on May 14 that half of the additional capital will be designated for developing new production lines and the remainder will be utilised for environment equipment. Last year, the German auto manufacturer placed a modernised environmentally friendly paint factory into operation at a cost of US$10 million. This year, the company will introduce 18 new models, bringing the total number of its up-scale automobile models on its showroom floors to 40. Last year, sales of the auto retailer grew by 65%, triple that of the country s average dealer, and Mr Behrens has high expectations they will continue to prosper this year. According to Vietnam Automobile Manufacturers Association (VAMA), Mercedes-Benz has sold 381 cars in the first two months of this year. Source: VOV 28 Germany Investments Profile in Vietnam
March 13 th, 2013 A milestone in German-Vietnamese relations http://www.auswaertigesamt.de/en/aussenpolitik/laender/aktuelle_artikel/vi etnam/130313_text_unterzeichnung_regierungsabkommen.html A milestone in German-Vietnamese relations The German House in Ho Chi Minh City is intended as a forum for German and Vietnamese people to meet and exchange views. The two countries have now concluded an intergovernmental agreement on planning and implementing the project. Foreign Minster Westerwelle has called the agreement a milestone in bilateral relations. Commenting on the ceremony to sign the intergovernmental agreement on 13 March, Foreign Minister Westerwelle said, The German House is an advert for Germany as a culturally attractive, economically strong and technologically advanced location in Europe. At the same time, it is an important sign of Germany s and Europe s committed involvement in the region of growth that is South-East Asia. Minister of State Cornelia Pieper signed the intergovernmental agreement on the planning, construction and operation of the German House in Ho Chi Minh City, as did the Vietnamese Ambassador to Germany, Nguyen Thi Hoang Anh. The signing ceremony was also attended by Foreign Minister Guido Westerwelle and Nguyen Sinh Hung, Chairman of the National Assembly of Viet Nam. In future, the German House in Ho Chi Minh City is to accommodate the German Consulate-General, German cultural organizations and representatives of German business under one roof and grow into a place where German and Vietnamese people come together and exchange views. This new agreement is the second relating to the German House. The first intergovernmental agreement was signed by Chancellor Angela Merkel and Viet Nam s Prime Minister Nguyen Tan Dung in Hanoi in October 2011. In it, Germany is granted the right to use a plot of land originally bought in 1960 for the construction of an Embassy. Foreign Minister Westerwelle initiated the process of drawing up the Hanoi Declaration on the strategic partnership between Germany and Viet Nam in June 2011. Subsequently signed by Federal Chancellor Merkel in October 2011, the declaration provided the foundation for this most recent intergovernmental agreement. 29 Germany Investments Profile in Vietnam
March 8 th, 2014 German firms explore opportunities in Viet Nam http://www.talkvietnam.com/2014/03/german-firms-explore-opportunities-inviet-nam/#.uzjzv6iszfi German firms explore opportunities in Viet Nam Posted on March 8, 2014 Written by vietnamnews A NOI (VNS) German businesses are keen to collaborate with Vietnamese partners involved in the production of chemicals and additives. This observation was revealed at a Germany-Vietnam business forum held by the Germany Chamber of Industry and Trade in HCM City, on Thursday. Business executives discussed collaboration to expand their firms production, open representative offices, and expand the market share of German businesses in Vietnam. The event provides an opportunity for the local companies to establish new joint ventures, access new sources of investment, and gather useful information on the European market. By the end of 2013, Germany, Vietnam s 22nd largest investor, had invested in more than 200 projects in the country, with a registered capital of over US$1.1 billion. VNS 30 Germany Investments Profile in Vietnam
March 6 th, 2014 German Firms Seek Opportunities in Vietnam http://en.vietnamplus.vn/home/german-firms-seek-opportunities-in Vietnam/20143/47087.vnplus German firms seek opportunities in Vietnam German businesses are eager to find Vietnamese partners operating in the production of chemicals and additives. The observation was made at a Germany-Vietnam business forum held by the Germany Chamber of Industry and Trade in Ho Chi Minh City on March 6. Business executives discussed collaboration to expand their firms production, open representative offices and enlarge German businesses market share in Vietnam. A representative from Touchtronic GmbH, specialising in high technology, said his enterprise wants to seek long-term partners in Vietnam to broaden their import of electronic products from the country. The European firm now provides German customers with all of its electronic equipment shipped from China. Other German businesses at the forum mostly specialise in the spheres of investment consultancy, education and food processing. The event is a good opportunity for local companies to establish new their joint ventures and access new sources of investment and useful information on the European market. By the end of 2013, Germany, Vietnam s 22 nd largest investor, had more than 200 projects in the country, with a registered capital of over 1.1 billion USD.-VNA 31 Germany Investments Profile in Vietnam
February 20 th, 2014 Germany - Vietnam s lucrative export market to EU http://www.stoxplus.com/news/136818/1/188/germanyvietnam%e2%80%99s-lucrative-export-market-to-eu.stox Germany- Vietnam s lucrative export market to EU Vietnamese exports to Germany grew by 15.5% last year to a whopping total of US$4.72 billion. Vietnam Customs statistics show that after just two months of trading in 2014, Vietnam s German exports have already reached US$ 461.9 million. Major products achieving high export earnings include coffee (US$44 million), garments and textiles (US$75.8 million) footwear (US$55.9 million), cases, umbrellas handbags, (US$15.1 million), seafood (US$16.8 million), computers, and electronics (US$ 42.8 million) and mobile handsets and components (US$101.4 million). To further strengthen trade links, Vietnam and Germany have signed a number of agreements on double tax avoidance, investment encouragement and protection and maritime and aviation cooperation, with a view to creating a firm legal foundation for broader economic ties. The move offers favourable conditions for Vietnamese businesses to capitalise on advantages from the German market. Businesses should identify and learn more about consumer habits so as to penetrate potential new markets in what is a very demanding market place. For instance, in terms of wood products, German consumers have a demand for various types of products with large volumes, short life expectancy, good sales service and at competitive prices. Most consumers are fond of products designed in a natural romantic and traditional manner, requiring businesses to fully understand customer taste to produce appropriate products. Based on experiences of businesses doing well in the German market, to boost Germany export, Vietnamese businesses need to comply with conditions and standards set by both the EU and Germany. The EU has common regulations for foreign goods exported to its regional markets but each member market has its own rules. 32 Germany Investments Profile in Vietnam
However, strict German laws force businesses to pay due attention to three export standards quality, hygiene and safety and social responsibility. If Vietnamese businesses are capable of meeting stringent German regulations then penetration into other European markets is within reach. Germany has long been considered an important gateway for Vietnamese goods to enter the EU market. Vietnam is ranked 40th among Germany s 144 exporting nations. German experts have forecast that economic growth will continue in the future. Last year Germany imported 53.5 billion Euros worth of goods. As a highly populous nation where people like to go shopping, Germany is perceived as a huge export market for exporters. The Vietnam Association of Seafood Exporters and Producers (VASEP) predicts that Germany s demand for seafood products, particularly canned Tuna will be on the rise along with Vietnamese fresh fruits like bananas, mango, orange, grape, apple, peach. Germany represents the largest garment and textile EU importer. Last year Vietnam s garment exports to Germany reached US$652 million, up 16.74% from the corresponding period of the previous year. Vietnamese garment exports to Germany are predominantly jackets, sweaters and long dresses. High German consumption demand means that Vietnamese businesses must know best how to approach and conquer consumers there. 33 Germany Investments Profile in Vietnam
January 16 th, 2014 Siemens to commercialize fuel-saving bus project this year http://english.thesaigontimes.vn/home/business/corporate/32877/siemens-tocommercialize-fuel-saving-bus-project-this-year.html Siemens to commercialize fuel-saving bus project this year Pham Thai Lai, CEO of Siemens Vietnam, at the meeting with reporters in HCMC on Wednesday - Photo: Binh Nguyen HCMC - Siemens Vietnam is pinning high hopes that commercial production of the energy-efficient buses using the Siemens ELFA hybrid technology will be translated into reality this year after completing test of the first such bus prototype. Production of the bus is planned for this year, Pham Thai Lai, chief executive officer of Siemens Vietnam, responded to a relevant question raised by the Daily in HCMC on Wednesday, when he met reporters to provide an overview of the company in Vietnam in 2013. The bus prototype is now being tested on fuel consumption and emission reduction among others. Lai said that Siemens Vietnam was working with its partner Vietnam Motors Industry Corp. (Vinamotor) over the project but stressed that the number of such buses to be manufactured had not been decided. 34 Germany Investments Profile in Vietnam
Siemens Vietnam has also introduced the environment-friendly bus model to the authorities of HCMC, the economic hub of Vietnam where more than 3,200 commuter buses of different sizes are currently in service. Siemens Vietnam and Vinamotor launched the first hybrid-drive prototype bus in Hanoi in June 2013, a year when it celebrated the 20th anniversary of its official presence in Vietnam. The bus was the result of nine months of close collaboration between the two sides. In September 2012, representatives of Siemens Vietnam and Vinamotor clinched a contract for manufacturing the bus prototype, three months after the two sides initialed a cooperation agreement for applying the Siemens ELFA hybrid-drive technology to city buses in Vietnam. As the technology enables fuel consumption reduction by up to 50%, operators of those buses using this technology will be able to save significant costs and contribute to environmental protection. Lai said 2013 was a successful year for Siemens Vietnam as the company saw its revenue increase by 25% over 2012 as the result of many major contracts it won in the areas of energy, healthcare, industry, infrastructure and urban development. The contracts included extension maintenance and equipment supply services for Phu My 3 combined-cycle power plant in Ba Ria-Vung Tau Province, equipment supply for the Pho Noi 500kV station and its electricity transmission lines, and the comprehensive Aptio Automation solution for the medical center Medic in HCMC to ease workload and offer better healthcare services to patients. Lai said that this year Siemens Vietnam continued identifying more opportunities in the energy, healthcare, industry, infrastructure and urban development as these were strongly expanding market segments in this country. Lai hoped that the company would achieve a double-digit growth in revenue in 2014 although many challenges remained in this market this year. By Saigon Times 35 Germany Investments Profile in Vietnam
December 12 th, 2013 Deutsche Bank still keeps stake in HAGL http://www.stoxplus.com/news/131772/1/186/deutsche-bank-still-keeps-stakein-hagl.stox22/12/2013 Deutsche Bank still keeps stake in HAGL In an official report to the HCMC stock exchange over the weekend, the bank said it had purchased 6.9 million HAL shares between June 25 and November 29, raising its stake in the local group from 3.03% to 3.82%. Although Deutsche Asset Management (Asia) offloaded 3.94 million HAL shares and Deutsche Bank Trust Company Americas sold 264,000 HAL shares to reduce their holdings to 0.03% and 1.14%, other subsidiaries of Deustche Bank had bought more HAL shares after the local group floated an additional 73.3 million shares on bourse. Therefore, the holdings of HAL shares by the bank and related funds stayed unchanged at 4.99%. Meanwhile, Global Witness, which had issued several reports accusing HAGL of irregularities in its development projects in Laos and Cambodia, had days earlier proclaimed that the German bank had divested funds from HAGL. The stake transfer was understood as a response to calls from Global Witness to international investors to distance themselves from HAGL. Doan Nguyen Duc, board chairman of HAGL, refused comments on the issue, saying the trading of shares on bourse is the right of investors. In addition, Deutsche Bank is not a major investor of his group. The non-governmental Global Witness, headquartered in the UK, in May this year issued a report charging that HAGL, known for rubber and sugarcane farming and housing, had damaged the environment and caused negative impacts on residents when developing projects in Laos and Cambodia. An investment fund that used to hold stakes in HAGL said that had faced pressure from European investors to offload HAL shares after accusations from Global Witness. Some other investment funds had sent missions to HAGL s projects in the two countries to verify the accusations, the source said, adding no major funds had offloaded HAL shares. 36 Germany Investments Profile in Vietnam
December 9 th, 2013 Germany a big trade partner of Vietnam http://www.stoxplus.com/news/135464/1/188/germany-%e2%80%93-a-big-tradepartner-of-vietnam.stox Germany a big trade partner of Vietnam Vietnam Customs statistics show Vietnamese exports to Germany last year reached US$4.72 billion, a year-on-year rise of 15.4%. Its major export items include obile phone handsets and components, footwear, garments, coffee, timber products, seafood, rucksacks, bags, purses, handicrafts, computers, and electronics. Among the exports, mobile handsets and components topped the list, earning US$1.54 billion, representing an annual increase of 32% and making up one third of the total export value. Germany is the largest EU garment importer, creating plenty of opportunity for Vietnamese garment makers. In 2013 alone, Vietnamese garment exports to this market were valued at US$652 million, an annual rise of 16.7%, and accounting for 13.7% of the total export earnings. Computers and electronics posted the highest growth of 108%, raking in US$337 million in value. Other export items attaining high growth include seafood (up 2.6%), handbags, hats, cases, umbrellas (17.6%), plastics (6.4%), steel (9.3%), cashew nuts (6.7%), rubber (35.7%), cookies and cereals (49.8%) and fruit and vegetables (16%). 37 Germany Investments Profile in Vietnam
OECD information regarding Germany http://www.oecd.org/dac/stats/documentupload/vnm.jpg 38 Germany Investments Profile in Vietnam
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