MANY GERMAN BUSINESSES INVEST IN VIETNAM

According to VNA, the German Economic Week (WIWO) newspaper on May 29 reported that, due to supply chain disruptions, more and more German companies in Asia are looking for alternative solutions. Notably, Vietnam is now the new choice of German companies.

 Mr. Marko Walde, Chief Representative of the German Chamber of Industry and Commerce, confirmed that the German company visits weekly to look for a new location here. (Photo: VNA)

WIWO stated that in Asia, many German companies realize that Vietnam can become a production investment location. Mr. Marko Walde, Chief Representative of the German Chamber of Industry and Commerce (AHK) in Vietnam said: “Since Vietnam reopened its border on March 15, we have been employed by medium-sized companies. of Germany visit almost weekly to look for new places here”. Currently, German companies in Asia are considering shifting operations from other Asian countries to Vietnam.

Vietnam has a tariff advantage thanks to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and is the only Asian country besides Singapore that has a free trade agreement with the European Union (EU). In an analysis, the German Trade and Investment Agency (GTAI) in Vietnam assessed: “Companies operating internationally are diversifying their supply chains and consider Vietnam as an investment destination. private". GTAI takes the example of the Danish toy manufacturer LEGO, which has invested more than 1.2 billion euros in a new factory in Vietnam.

Meanwhile, according to WIWO, Kärcher Group in Winnenden (Germany), which specializes in the world's leading manufacturer of cleaning machines and systems, has also decided to choose Vietnam as its new production location. Kurz, a manufacturer of pressed coating products based in Fürth city (Bayern state), has just broken ground on a new production facility in Quy Nhon (Binh Dinh). Magnetec in Hessen will also manufacture in Vietnam.

Adhesive tape manufacturer Tesa, a subsidiary of the Beiersdorf Group, in May 2020 also announced an investment of 55 million euros, building a new factory in Hai Phong and is expected to open this facility within the year. next. According to Mr. Stefan Schmidt, Head of Supply Chain and Operations at Tesa, Vietnam has ideal conditions for the company's growth. Vietnam's economic development in recent years has been impressive, and even during the Covid-19 crisis, Vietnam's growth has been steady. In addition, Vietnam has very good trade relations with many countries and is located in the world's largest free trade area, Asia.