Vietnam – interesting potential market in Asia-Pacific: German economist

Illustrative image (Photo: VNA)

Berlin – Vietnam continues to be one of the most interesting potential markets in the Asian-Pacific region, together with India, economist Daniel Müller from the German Asia-Pacific Business Association (OAV) has said.

Talking to the Vietnam News Agency correspondents in Germany, Müller stated that the Vietnamese economy has recovered significantly and dynamically, reflected through a year-on-year increase of 29.5 percent in the trade turnover in the first four months of 2021, with 206.5 billion USD – the highest in the past 10 years.

However, in the second quarter, it is difficult for the country to achieve the growth rate as high as that of the first quarter, given the new COVID-19 outbreak, which will hinder the re-opening of its borders.

He predicted Vietnam’s economic growth rate would be equivalent to the average level of previous years.

In the medium term, the German expert affirmed that the industrial sector will continue to be the main driving force of Vietnam's economy.

If Vietnam continues to expand its policies to attract foreign direct investment and accelerate digital transformation, Vietnam will have good opportunities to participate more in global supply chains, for example, in electronics, computing and automotive industries, he stressed.

In these industries, Vietnam should develop a strategic development plan, in which it should connect well with potential foreign investors.

Economist Daniel Müller from the German Asia-Pacific Business Association (Photo: VNA)

To cope with long-term challenges, the Government should adjust the relationship between the State and businesses to conform to international standards so as to make the public-private partnership more effectively, he added.

Regarding the economic relationship between Vietnam and Germany in the first half of 2021, Müller said that forums and communication channels have helped deepen the economic ties.

The European Union-Vietnam Free Trade Agreement (EVFTA) plays an important role and is a good opportunity to promote economic cooperation between the two countries’ businesses. In January 2021, the OAV coordinated with the German Ministry of Economy and the Vietnamese Ministry of Industry and Trade to establish the Joint Committee on Germany-Vietnam Economic Cooperation (JEC). JEC will regularly hold discussions, with focus on the progress of implementing the EVFTA.

Regarding the prospect of the EU-Vietnam Investment Protection Agreement (EVIPA), the German expert said that Germany is interested in this pact, thanks to an increase in Germany's direct investments in Vietnam. However, it is not known exactly when the EVIPA will be ratified by the German Parliament and other EU member parliaments, he added.