Plans to boost trade and investment to help attract more western companies looking to diversity away from China
As several western countries try to shift their focus from China, towards other prospective countries in Asia, Germany is aiming to increase trade and investment relationships with Vietnam. According to a report in DW on Tuesday, November 15, German chancellor Olaf Scholz visited Vietnam’s capital Hanoi on Sunday to boost ties between both countries.
During the two-day visit, Scholz met with Vietnamese Prime Minister Pham Minh Chinh and Nguyen Phu Trong, head of its long-ruling Communist Party. Scholz stated that Germany wants to significantly increase trade and investment while assisting Vietnam in becoming a benefactor as Western firms seek to diversify away from China.
Scholz was accompanied by a 12-member business delegation during the visit during which he plans to seek closer economic ties with the country.
According to the report, both countries signed cooperation deals on energy and vocational training. Germany aims to play an important role in the future of Vietnam’s energy and education sector.
Scholz also suggested assisting the country with the development of its metro system in Hanoi, which has been stalled for several years.
The report states that according to recent figures from the World Bank, Vietnam is one of the fastest growing economies in South Asia. It also adds that over 90% of German companies who had invested in Vietnam want to continue making more investments in the country. Germany is also already Vietnam’s most important commercial partner among EU countries, just ahead of the Netherlands. According to Vietnamese official figures, bilateral commerce between the countries in 2021 was estimated at €7.5 billion.
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