The answers for the toughest questions

A strong background of 35 years of diplomatic ties between Vietnam and Germany has nurtured German businesses in Vietnam, including Siemens AG. The group’s president and CEO Peter Loescher offers VIR a snapshot of Siemens’ business development and commitments in Vietnam.

Mr Peter Loescher

Siemens has been active in Vietnam for more than 30 years and has participated in many infrastructure projects in the country. What are some of your most successful projects here?

Siemens was officially established in Vietnam in 1993, but our history dates back to 1979 when we supplied and installed the first two industrial steam turbines for the Bai Bang Paper Company.  Over the years, Siemens has made considerable contribution to Vietnam’s economic development and we are very proud of our long history as a trusted partner and friend of the people of Vietnam.

Siemens has participated in numerous Vietnamese infrastructure projects and nowadays has a strong presence in many vital sectors of the national economy such as energy, industry and healthcare.

We are contributing vigorously to the development of the energy sector in Vietnam and helping to ease the country’s severe power shortage. To date we have provided more than 3.3 gigawatts (GW) out of the total installed power generating capacity of about 15GW nationwide. 

We have successfully participated in many important power generation projects such as the Phu My 2-1 extension, Phu My 3, Ca Mau 1 & 2 power island and Nhon Trach 2 combined cycle power plants, as well as power transmission projects such as Son La, Doc Soi and Quang Ninh 500kV substations.

In industry, our solutions and technologies have also been applied and utilised in almost every field of Vietnamese industry ranging from city infrastructure construction and advanced transportation equipment to automation and drive technology. We have supplied 16 Diesel Electric type AR15 VR locomotives to Vietnam Railways.

Siemens Apogee Building Management System and Algorex Fire Alarm System have been installed in many important constructions such as at My Dinh National Stadium - the biggest stadium in Vietnam. Our highly efficient automation and drive products are extensively used in many of the country’s industries such as pulp and paper (VinaKraft), cement (Hoa Phat, Cong Thanh), steel (Thep Viet), food and beverage (Kinh Do, Coca Cola and Heineken).

In healthcare, Siemens has affirmed its number one position in supplying premium medical equipment and comprehensive healthcare solutions to hospitals and clinics in Vietnam. Our key customers include Bach Mai hospital in Hanoi, Cho Ray, Dong Nai, Khanh Hoa and Danang hospitals. 

What is you forecast for the global economic outlook this year and Vietnam in particular?

Experts raised their forecasts for the global economy to some 4 per cent gross domestic product growth (GDP) in 2010. When it comes to speed there will be several countries growing in the fast lane, as half of the overall global growth between 2008 and 2014 will derive from emerging markets such as the BRIC countries and also the Middle East.

Siemens is already well positioned in these markets has more than doubled its revenues in BRIC from 2005 to 2009. The findings of the current plight underline my personal belief that short-term orientation is not the appropriate way of making business. Siemens’ first priority and its overall strategy have always been based on sustainability and integrity.

The way Vietnam achieved more than 5 per cent GDP growth during the global economic recession has made me believe that Vietnam will take back its position as one of the most attractive destinations for foreign investment in Asia this year. I have no doubt that Vietnam will be able to achieve its set  growth target of 6.5 per cent for 2010.

As Vietnam and Germany celebrate the 35th anniversary of diplomatic relations this year, what is in your view of the increasingly strengthened bilateral ties serving Siemens’ development in Vietnam?

As I see it, the bilateral relationships between the two countries already have a special quality. There are 83,000 Vietnamese living in Germany alone, while in Vietnam there are 100,000 German-speakers. This promotes exchanges between the countries and mutual understanding.

The cultural exchange is becoming more intensive – as the 35th anniversary celebrations also show. The development of the economic relationships is very gratifying. Celebrating the 35th anniversary also offers a platform for the German economy for the further expansion of its business activities in Vietnam.

With its unique and broad portfolio, Siemens perfectly matches the challenges facing Vietnam at present and in the coming years, especially in the fields of infrastructure, transportation, energy and healthcare. As an integral part of Vietnamese economy and a long term and trustworthy partner, we are committed to support Vietnam to successfully overcome these challenges and thrive. 

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