Vietnam and Germany outline new economic cooperation orientations

The meeting was co-chaired by Vietnamese Deputy Minister of Industry and Trade Phan Thi Thang and State Secretary at the Federal Ministry of Economic Affairs and Climate Action (BMWK) Udo Philipp. Representatives of leading Germany groups such as Siemens AG, Siemens Energy, Enertrag, Adidas, Drägerwerk, HDI Global, and of Vietnamese businesses like Vietnam Pharmaceutical Corporation, VietinBank, Vietnam Airlines, Becamex IDC, FPT, T&T attended the event.

At the working session, the two sides reviewed bilateral economic cooperation in various fields including energy, energy security, energy transition, and the industry 4.0 revolution. They also examined ways of removing trade barriers and enhancing promotion in the fields of services and logistics to make the most of the benefits from the free trade agreement between the European Union and Vietnam (EVFTA).

The two sides acknowledged the positive development of bilateral relations, especially following the recent Vietnam visit by Prime Minister Olaf Scholz, with many new agreements signed, including an MoU on energy conversion, labour, and vocational training.

They exchanged solutions to simplify administrative procedures and remove non-tariff trade barriers. They agreed to support and protect geographical indications for each other’s products under the EVFTA and according to the law of both countries.

Vietnam suggested that Germany ratify the Investment Protection Agreement between Vietnam and the EU (EVIPA), encourage German enterprises to invest in Vietnam, and create favourable conditions for Vietnamese farm products to make inroads into the German market.

Both sides also agreed to cooperate in marketing products on retail distribution channels in the partner market, as well as notifying each other information about trade exhibitions and fairs.

They noted that despite global economic uncertainties, bilateral economic relations have developed positively, with two-way trade last year reaching nearly EUR15 billion, an increase of EUR10 billion compared to 2015.

The German side said they would like to invest in energy, health care and digitalization through experience exchange and technology transfer.

In the field of energy cooperation, the two sides expressed desires to establish an energy partnership to promote and accelerate energy conversion in Vietnam and Germany. They emphasized the importance of energy security and energy conversion, acknowledging the important role of ensuring energy security in economic development through diversifying energy resources, producing and using renewable energy efficiently.

With regard to industry and digital transformation, the two sides expected to strengthen cooperation in automobile manufacturing, encourage German companies to search for components and accessories suppliers in Vietnam, and invest in supporting industries in other fields such as textiles, footwear, electronics and high -tech production. They also touched upon the possibility of accelerating the granting of visa to German employees in Vietnam to make it more convenient for German companies to do business in the country.

The two sides agreed to hold the Vietnam –Germany Joint Committee on Economic Cooperation every two years. The next meeting is expected to be held in Vietnam in early 2025, or sooner according to the agreement of the two sides.