Good Prospect for Vietnamese, German Cooperation in Engineering

Despite encouraging achievements by the domestic machinery engineering industry, Vietnam still has to spend billions of euros to import essential products every year to meet national economic requirements, said Deputy Minister of Industry and Trade Ho Thi Kim Thoa.

 

Thoa delivered this statement during a recent business conference, with the participation of over 250 businesses, including leading German enterprises in the machinery engineering sector.

 

She urged German enterprises, especially those from the State of Baden Wurttemberg, to help Vietnamese firms develop key mechanical specialties and products, as well as support industries needed for the manufacturing, automobile, electronics, and information and technology sectors.

 

Businesses from Vietnam and the State of Baden Wurttemberg found good conditions to foster co-operation in the machinery engineering industry, said the managing director of the German Engineering Federation (VDMA) in Baden Wurttemberg, Ulrich P Hermani.

 

In Vietnam, research and innovation in the engineering sector is very necessary, while in Baden Wurttemberg enterprises set aside six per cent of their revenues for innovation each year and they were willing supply their Vietnamese counterparts with advanced technology in the sector, he said. 

 

In addition to the machinery engineering industry, energy, pharmaceuticals and environmental protection were also outlined as potential sectors for speeding up bilateral coordination.

In spite of huge cooperation potential, German investment in Vietnam was still below expectations, said IMI Holding president Truong Huu Chi. He called on incentives from the German Government and its relevant sectors to foster the presence of German investors in the country.  

 

As of October, German business had pumped more than US$813 million into 153 projects in Vietnam, helping Germany rank 24 among 93 countries and territories investing in the country.

 

Germany is Vietnam's biggest European trade partner. Vietnam exports footwear, garments and textiles, coffee beans, wood furniture and seafood to Germany.

 

Two-way trade value is estimated to reach more than US$5.7 billion this year, with Vietnam’s exports to Germany expected to reach US$3.7 billion.