German companies have positive view of Vietnam's business environment: ambassador

On the occasion of the Lunar New Year festival (Tet), German ambassador to Vietnam Guido Hildner speaks to The Investor about the Germany-Vietnam relationship and German companies' interests in Vietnam’s business environment.

What were the highlights of the Germany-Vietnam relationship in 2023 and their significance?

When I look back on 2023, I think most of all about the normalization of life after the Covid-19 pandemic. This was also the most important impetus for relations between Vietnam and Germany because this meant that encounters between the people of both countries were finally possible again.

Let me give you examples of such encounters: the German Vietnamese Science Day in April and the visits of many large delegations, such as the State of Lower Saxony led by Minister President Stephan Weil in October, and the State of Thuringia led by Minister President Bodo Ramelow in November.

What are Vietnam’s particular areas of interest to German companies? How about green transition and circular economy?

Besides Vietnam's attractive business environment, green transition and circular economy are particular areas of interest to German companies. With the increasing global focus on sustainable development and environmental protection, Vietnam is actively promoting these agendas, creating significant opportunities for German companies to contribute to the country's green growth and sustainability goals.

German expertise in renewable energy, waste management, and environmentally friendly technologies can greatly support Vietnam's efforts in this regard. This will help meet commercial and private customers' increasing demand for renewables and sustainability and thereby attract more FDI.

How do you and German companies view Vietnam’s business environment? What are their concerns about expanding investments in Vietnam? Do you have any recommendations to improve it?

German companies generally view Vietnam's business environment positively, considering the country as a promising investment destination. The consistent economic growth, along with the government's efforts to improve the business climate through various reforms and policies, have created a conducive environment for foreign investors.

However, there are certain concerns that German companies have when expanding their investments in Vietnam. These include issues related to transparency and administrative procedures, intellectual property rights protection, access to skilled labor, and infrastructure development. Addressing these concerns would further enhance the attractiveness of Vietnam as an investment destination.

To improve the business environment, we would recommend the Vietnamese government to continue streamlining administrative procedures, enhancing transparency, and protecting intellectual property rights. Additionally, further investment in infrastructure development, including transportation, logistics, and energy, would strengthen the country's overall competitiveness and attract more foreign investment.

Overall, Vietnam has immense potential for German companies, and by addressing these concerns and further improving the business environment, the bilateral economic cooperation can reach even greater heights.

In its socioeconomic development, Vietnam can learn a lot from Germany and needs the latter’s assistance. What are the prospects for cooperation between Germany and Vietnam in the development area?

Germany has been supporting Vietnam through development cooperation for many decades now. The focus of this cooperation has changed throughout time. In the 1990s our development cooperation was focused on the fight against poverty, providing basic healthcare, and supporting the economic transition.

With Vietnam’s impressive economic growth and the country’s increasing ability to provide the social infrastructure needed, Germany has adapted its support to areas of mutual interests such as renewable energy, vocational training, and the protection and sustainable exploitation of forests.

In acknowledging Vietnam’s status as a mid-income country and the corresponding impacts on our cooperation, Vietnam has become a strategic partner for our cooperation. Thus, we will continue – together with our Vietnamese partners – to work on the protection of global goods and a sustainable and green economic development here in Vietnam and the region.

What message do you wish to convey to the Vietnamese people and The Investor readers at Tet?

I wish the readers of The Investor all the best for the Year of the Dragon, happiness, success and health. My special wish is peace for everyone in the world!