Prime Minister Nguyen Xuan Phuc is hoping expert German support will help accelerate Vietnam’s automobile industry. Vietnamese and German businesses signed 28 agreements totaling 1.5 billion euros ($1.7 billion) on Thursday during Vietnamese Prime Minister Nguyen Xuan Phuc’s trip to the European powerhouse.
Trade between the two countries reached $9 billion last year, making up 20 percent of the total turnover between Vietnam and the European Union.
German investment in Vietnam recently hit $1.8 billion, PM Phuc told a business forum on the same day.
Phuc went on to say that Vietnam has been taking great strides in improving its business environment and opening up its market, with 12 free-trade-agreements already signed with different countries and blocs.
With the automobile industry developing fast in Vietnam, he asked German firms to invest in the country’s support industries to enable it to produce more parts domestically, as well as cooperate with Vietnam in the energy sector.
Responding to Phuc’s suggestion, a representative of leading German auto firm BMW said the company was interested in exploring investment opportunities and building an auto components plant in Vietnam.
AeroGround Flughafen München GmbH, which offers ground handling services, said it was willing to train airport staff in Vietnam, while BPCE International expressed an interest in cooperating with Vietnamese lenders to pilot a new banking model.
PM welcomed the interest, and said the Vietnamese government will create favorable conditions for foreign investors to operate in the country.
Brigitte Zypries, German minister for economics and energy, said Germany wants to raise bilateral trade to $15-20 billion by 2020, while taking advantage of the free trade agreement Vietnam and the EU are about to sign.
During his trip to Germany, the PM will attend the G20 summit on Friday and Saturday.