German companies see the great potential of Vietnam as a destination for manufacturing and investment, and the 14th Asia-Pacific Conference of German Business (APK) in Ho Chi Minh City is a clear sign of confidence in Vietnam, German Ambassador Jutta Frasch told Tuoi Tre News in an interview via email. 

The Asia-Pacific-Conference of German Business is organized biannually since 1986 by the Asia Pacific Committee of German Business (APA) and is the biggest German networking event in Asia. Every two years it attracts several hundred German business leaders.

German companies see the great potential of Vietnam as a destination for manufacturing and investment, and the 14th APK in Ho Chi Minh City is a clear sign of confidence in Vietnam.

It focuses on business trends and perspectives for the development of the Asia-business of the participating companies.

According to the Foreign Investment Agency under the Vietnamese Ministry of Planning and Investment, by the end of September 2014, Germany had 238 existing direct investment projects in Vietnam with a total registered investment capital of US$1.337 billion, ranking 22 out of 101 countries and territories with operational FDI in Vietnam.

Is the number small compared to the potential of both countries? Will APK discuss ways to raise the figure to a higher level?

Part of the discussions during the APK will focus on investment conditions in Asia. The APK is not a conference on Vietnam, but on the Asia-Pacific region in general.

However, the fact that the conference is held in Vietnam shows that German business believes that Vietnam will continue its positive development. In the past, German investment in Vietnam grew steadily. Vietnam has to prove to foreign business that it will offer good framework conditions for their activity here. This includes not only well-educated labor, but also the rule of law and transparent decision-making processes.

As the economic growth in many countries in the developed world is slowing down, with signs of stagnation or even the possibility of falling back into recession (and even Germany had to revise its GDP growth target), how can the developing world, like Vietnam, help in bringing the growth engine back on track, which couldy result in faster growth for the developing world in the near future?

Vietnam and other emerging economies can help stabilize the global economy through high growth rates and imports from economies such as Germany. The free trade agreements with the EU, but also the TPP with the USA and other countries in the region will help boost regional as well as international trade.

Europe and Germany are looking to the region and Vietnam, since the ASEAN common internal market to be completed in 2015 carries the promise of better investment and business conditions for our companies as well as those from the region.

How can future FTAs between the EU and Vietnam, one of which is very likely to be reached next year, be fruitful for both Germany and Vietnam, and in which sectors?

When implemented successfully, the FTA with Europe will spur growth in both Vietnam and Europe. It remains to be seen which sectors will benefit most, but I am sure that not only will trade figures improve, but the FTA will also have a positive effect on FDI in Vietnam.