German firms to look at local market during Asia-Pacific meet

Germany has had 238 investment projects in Vietnam with a total registered capital of $1.34 million. - Photo dddn.com.vn

According to the official website of the Asia-Pacific Conference of German Business (APK), its 14th conference will be held from November 20 to 22 in HCM City.

In recent years, Vietnam has attracted an increasing number of foreign investors due to the country's fast-growing economy and geographical advantages. With the conference taking place in HCM City, Vietnam will host this event for the very first time. The conference has been organised biannually in Asia since 1986, and has become the largest German networking event in the region, attracting political as well as business leaders, reported the website.

This year's conference theme is "Understanding Trends and Perspectives". The combined economies in the Asia-Pacific region are playing an ever-more important role in global trade, as per their share in world population and GDP.

The 14th APK will focus on industries and trends of the future, where co-operation between businesses in Germany and the Asia-Pacific can thrive.

During the two-day conference, some 750 participants will have ample opportunities to speak, listen, network and contemplate concepts and solutions for a sustainable future.

German Ambassador to Vietnam Jutta Frasch said that more than 160 German companies in Vietnam create jobs and contribute to the development of the Vietnamese economy. A clear sign of trust of the German companies in Vietnam is the APK conference being held this November in HCM City.

Frasch said that Vietnam has had fast and strong economic integration via free-trade agreements and the Vietnamese government has strived to complete economic policies. These are attractive points for German companies, reported the Vietnam News Agency (VNA).

Meanwhile, Vietnamese enterprises have limited foreign direct investment opportunities in Germany due to capital and trade barriers, she said. However, a few Vietnamese enterprises have opened their businesses in Germany, such as FPT and Vietinbank.

The free-trade agreement between Vietnam and the EU is expected to be a chance to increase investment between Germany and Viet Nam.

Germany will transfer technology to Vietnam, while Vietnam can export more consumer goods to Germany and other countries in the EU, she said.

The Trade Office of Vietnam in Germany said that the ongoing industrial revolution in Germany will bring good opportunities for Vietnamese companies in receiving technological transfers from Germany.

Germany will also be an attractive market for Vietnamese goods and a favourable place for local products entering other EU markets, including France, Netherlands, Austria, Poland and Belgium.

According to the Europe Department of Vietnam's Ministry of Industry and Trade, the trade value between Vietnam and Germany reached US$4.95 billion by August 2014.

Germany has had 238 investment projects in Vietnam with a total registered capital of $1.34 million.

Many leading German hi-tech brands such as Mercedes Benz, Siemens, Bosch, Adidas and Xella have had efficient operations in Vietnam. Several large German firms, therefore, see Vietnam as a potential market that can replace China.