Over 60 per cent of German companies confirmed interest in doing business in Vietnam and intend to set up businesses in both Asia and Vietnam, lauding the great opportunities for both sides from the EU-Vietnam Free Trade Agreement (EVFTA), according to the latest Vietnam healthcare survey conducted by GIC/AHK Vietnam.
In January 2020, GIC/AHK Vietnam, in collaboration with reputable German professional associations in the healthcare sector, conducted a market development programme survey on the Vietnamese healthcare sector in 2020, with the participation of German companies from the fields of medical technology, pharmaceuticals, and biotechnology in order to identify the interests and needs of German firms, their intentions, and their expectations as well while researching and approaching the healthcare market in Vietnam.
|German companies see great opportunities in Vietnam'from the EVFTA |
The survey showed that Vietnam is an attractive investment destination for German companies in the healthcare sector, especially when the EVFTA comes into effect in July 2020. German multinational companies and German SMEs confirmed their interest in doing business in Asia (86 per cent) and in setting up business in Vietnam (66 per cent).
Currently, Germany is the most important trade partner in the EU and one of the Top 2 import countries of medical equipment for Vietnam, with the total import value of $153 million in 2018.
One of the most effective strategies to approach the Vietnamese markets are establishing branches and entering into co-operation with local partners. 54 per cent of German firms found challenges in finding necessary market information, information on registration process, local regulations, or import duties for their products. Linguistic and cultural differences should affect their investment intentions in Vietnam (43 per cent). while 37 per cent of respondents had difficulties in finding an appropriate local partner and workforce in Vietnam.
From August 2019, the German Federal Ministry for Economic Affairs and Energy has officially appointed a contact person in GIC/AHK Vietnam to support and connect German small- and medium-sized enterprises (SMEs) in the healthcare industry.
The contact person in GIC/AHK Vietnam supports German SMEs in the healthcare industry in terms of market entry process, strengthening connectivity, and business development in Vietnam.
Approaching a new market requires careful preparation and clear plans from businesses and the contact person could prove vital in providing information about economic policies, legal regulations and frameworks in the healthcare industry in Vietnam, as well as market prospects, including demand, opportunities, and challenges in this industry for German SMEs.