EVFTA set to leverage Vietnam - Germany economic cooperation

The freshly signed EU-Vietnam Free Trade Agreement (EVFTA) and regional market developments are expected to further boost investment and business cooperation between Vietnam and Germany.
evfta set to leverage vietnam germany economic cooperation

Illustrative photo (Source: VOV)

Vietnam Economic Times quoted comments by Nguyen Son Tra, an official from the Multilateral Trade Policy Department under the Ministry of Industry and Trade, as saying that the EVFTA is expected to yield an additional boost to Vietnamese exports to the trading bloc. Up to 85.6 per cent of total tariff lines are to be eliminated immediately after the trade deal comes into force.

A seven-year tariff elimination roadmap has been set out with 99.2 per cent of tariff lines to be slashed to 0 per cent, representing 99.7 per cent of the country’s total turnover of exports to EU markets.

Of note, Germany has emerged as a key EU importer of Vietnamese goods. 2017 saw Germany along the Netherlands and the UK as the top three EU importers of Vietnamese commodities.

The General Department of Vietnam Customs reported that bilateral trade between Vietnam and Germany reached US$9.5 billion in 2017; of which US$6.3 billion were contributed by Vietnamese exports.

The export figure increased to US$6.86 billion last year. It stood at US$3.3 billion during the first half of this year. Footwear, garments and textiles, coffee, aquatic products, cashew nuts, and pepper topped the list of domestic goods shipped to Germany.

In deed, there remains plenty of room to boost exports to Germany. Statistics show that the EU member country now ranks second among worldwide furniture importers. Last year it accounted for 8.1 per cent of the global import of such category.

Though local furniture firms have penetrated into the German market, their exports to this market remain modest. Vietnamese furniture exports to Germany reached only US$80.8 million during the first quarter of this year.

Statistics released by the Vietnam Trade Office in Germany indicate that the European country is the world’s second largest importer of unmilled pepper (code: HS 090411), with a proportion of 10.1 per cent of the global turnover of such goods in 2017.

Vietnam is the second largest pepper provider for Germany, behind only Brazil. An average of 5,000 tons of Vietnam’s unmilled pepper is estimated to be shipped annually to the German market. Notably, the Southeast Asian country sold 8,510 tons of unmilled pepper to Germany last year and subsequently earned US$35.11 million, up 5.61 per cent in volume, yet down sharply by 34.45 per cent in value.

Marko Walde, chief representative of German Industry and Commerce Vietnam (GIC/AHK Vietnam), has high hopes on imminent opportunities for both countries’ businesses. Germany enterprises expect Vietnamese firms to get more involved in the projects which the former have been implementing in Vietnam.

There are some 300 German firms operating in the Vietnamese market. In a medium and long term, there would be an increase in the number of German investors seeking investment opportunities in the Vietnamese market, partly thanks to the upcoming implementation of the EVFTA and the EU-Vietnam Investment Protection Agreement (EVIPA) which were signed by both sides in late June this year.

Up to 55 per cent of the German enterprises operating in Vietnam have planned to increase their business and investment in the country, noted Walde.

German investors flocked to make bold investments in China 20 years ago, but many are now seeking to move their production bases to another country due to adverse market developments seen in China.

As such, Vietnam and Thailand are regarded as the most promising investment destinations in Southeast Asia. In order to attract these foreign investment inflows, Vietnam should perfect its legal frameworks soon in order to build more trust among foreign investors.

Source: VOV

Related News

Vietnam"s economy to grow by 6.6% this year: OECD

Vietnam"s economy to grow by 6.6% this year: OECD

Vietnam's economy will grow by 6.6% this year and at a similar rate in 2024, according to a report released on March 31 by the Organisation for Economic Co-operation and Development (OECD).
Binh Dinh introduces economic, trade potential to Belgian businesses

Binh Dinh introduces economic, trade potential to Belgian businesses

The central coastal province of Binh Dinh introduced its economic and investment potential to Belgian businesses at a hybrid conference in Brussels on March 24.
Southeastern region to become country’s leading economic engine

Southeastern region to become country’s leading economic engine

Experts have called for continued efforts to improve the traffic infrastructure and implementation of reforms needed to make the southeastern region a leading economic engine of the country.
German journal highlights Vietnam’s economic achievements

German journal highlights Vietnam’s economic achievements

No other country of the same size in the world has achieved such great achievements on the Index of Economic Freedom as Vietnam since 1995, highlighted German economic and financial news website wallstreet-online.de in a recent article.

Latest News

Saigontex 2023 attracts over 1,300 domestic, foreign businesses

Saigontex 2023 attracts over 1,300 domestic, foreign businesses

More than 1,300 businesses from 21 countries and territories are participating in the Vietnam Textile & Garment Industry Expo (Saigontex) 2023, the leading exhibition of the industry in Southeast Asia, which opened in Ho Chi Minh City on April 5.
Mong Cai international border gate sees strong recovery

Mong Cai international border gate sees strong recovery

The Mong Cai international border gate in the northern province of Quang Ninh has become vibrant as before the pandemic, showing a positive sign in the economic recovery of Mong Cai city in particular and Quang Ninh province in general.
Vietnam a potential market for French businesses, investors: experts

Vietnam a potential market for French businesses, investors: experts

French businesses should innovate their approach, enhance their understanding of culture and language, and make changes to adapt to Vietnam's transitioning economy in order to expand their market share and boost investment in the Southeast Asian nation, said Dr. Jean-Philippe Eglinger, the founder of the Viet Phap Strategies.
Import and export turnover across Cao Bang prospers but still exists difficulties

Import and export turnover across Cao Bang prospers but still exists difficulties

VCN – After China resumes trade, Cao Bang province's import and export activities see remarkable prosperity.

More News

Cashew industry strives to "get on the shelves of world supermarkets"

Cashew industry strives to "get on the shelves of world supermarkets"

VCN - Although holding the number one position in the world in exporting cashew kernels for many years, the position of Vietnam's cashew industry in the world cashew value chain is very small because it mainly exports kernels with preliminary treatment.
HCM City’s industrial production index down 0.9% in Q1

HCM City’s industrial production index down 0.9% in Q1

Ho Chi Minh City’s Index of Industrial Production (IIP) in the first quarter of 2023 declined by 0.9% compared to the same period last year, the municipal Department of Industry and Trade reported at a press conference on April 3.
Fisheries exports estimated at 1.85 billion USD in Q1

Fisheries exports estimated at 1.85 billion USD in Q1

Fisheries export value was estimated at 1.85 billion USD in the first quarter (Q1) of this year, a fall of 27% compared to the same period last year due to lower consumption and import demand under the impacts of inflation and economic recession, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Quang Ninh aims to attract quality FDI inflows

Quang Ninh aims to attract quality FDI inflows

The northern coastal province of Quang Ninh has strengthened measures to attract quality foreign direct investment (FDI) inflows, especially from big names in the processing-manufacturing industry.
Exports face many difficulties

Exports face many difficulties

VCN - In the first months of 2023, the absence of export orders plus the downward trend in commodity prices have slowed down trade activities.
Manufacturing enterprises increase their competitiveness thanks to digital transformation

Manufacturing enterprises increase their competitiveness thanks to digital transformation

VCN - Overcoming difficulties in 2023 requires manufacturing enterprises to self-improve and innovate. Digital technology is one of the effective solutions to help manufacturing businesses grow and compete.
32nd Việt Nam Expo promises to boost business linkages

32nd Việt Nam Expo promises to boost business linkages

The 32nd Việt Nam International Exhibition (Vietnam Expo) will take place in Hà Nội from April 5-8 with the participation of more than 500 domestic and foreign enterprieses, the event’s organisers have announced.
Prevention of price risks before news that Indonesia increases rice imports in reserve

Prevention of price risks before news that Indonesia increases rice imports in reserve

VCN - In response to demand signals from key markets such as Indonesia and the Philippines, the Import-Export Department (Ministry of Industry and Trade) suggested that rice exporters actively monitor the market situation and fully assess the opportunities as well as risks to build a trading plan.
Japanese investors highly appreciate Vietnamese property market

Japanese investors highly appreciate Vietnamese property market

Representatives from around 180 Japanese businesses and investors on April 1 attended a Tokyo workshop on Vietnamese real estate, during which many of them highly appreciated the potential of Vietnam’s property market.
Read More

Your care

The system has not recorded your reading habits.

Please Login/Register so that the system can provide articles according to your reading needs.

Latest Most read
Saigontex 2023 attracts over 1,300 domestic, foreign businesses

Saigontex 2023 attracts over 1,300 domestic, foreign businesses

More than 1,300 businesses from 21 countries and territories are participating in the Vietnam Textile & Garment Industry Expo (Saigontex) 2023, the leading exhibition of the industry in Southeast Asia, which opened in Ho Chi Minh City on April 5.
Mong Cai international border gate sees strong recovery

Mong Cai international border gate sees strong recovery

The Mong Cai international border gate in the northern province of Quang Ninh has become vibrant as before the pandemic, showing a positive sign in the economic recovery of Mong Cai city in particular and Quang Ninh province in general.
Vietnam a potential market for French businesses, investors: experts

Vietnam a potential market for French businesses, investors: experts

French businesses should innovate their approach, enhance their understanding of culture and language, and make changes to adapt to Vietnam's transitioning economy in order to expand their market share and boost investment in the Southeast Asian nation, said Dr. Jean-Philippe Eglinger, the founder of the Viet Phap Strategies.
Import and export turnover across Cao Bang prospers but still exists difficulties

Import and export turnover across Cao Bang prospers but still exists difficulties

VCN – After China resumes trade, Cao Bang province's import and export activities see remarkable prosperity.
Cashew industry strives to "get on the shelves of world supermarkets"

Cashew industry strives to "get on the shelves of world supermarkets"

VCN - Looking back to 2022, while the export turnover of the cashew industry reached US $ 3.08 billion, the import turnover of raw cashews consumed US $ 2.678 billion.
Mobile Version