The occasion this present year has been organized in Ho Chi Minh City. Germany's vicechancellor and economic climate minister Sigmar Gabriel may also go to the summit.
Growing domestic marketplace
An example of a fruitful commercial engagement in Vietnam is the fact that of the German sportswear maker Adidas. The organization happens to be sourcing products from Vietnamese suppliers for quite some time, Adidas' Simone Lendzian informed DW, incorporating that the nation sometimes appears as a great production base.
Vietnam, alongside China and Indonesia, is just one of the three major supplier countries for Adidas around the globe, Lendzian noted.
"Furthermore, the importance of Vietnam as a customer marketplace is growing. The country's young population has a very good interest in international companies. We're seeing a top degree of understanding about our brand and growing popularity because of it, therefore resulting in increased interest in our products, " said Lendzian.
With a population of about 90 million additionally the average earnings steadily increasing, the domestic customer marketplace is appealing. Since 2009, Vietnam has been a middle-income nation, according to World Bank requirements.
Vietnam's economy expanded by 5.4 per cent in 2013 and foreign direct investment added to almost 20 percent associated with country's economic result. Foreign people positively gauge the investment climate in Vietnam, particularly as a result of political and macroeconomic stability, a highly-motivated and well-trained staff while the country's proximity to China, reads a recently available World Bank report regarding the competitiveness of the nation.
"too little skilled employees is one weak point throughout the market, " GTAI's Hundt stressed.
This shortcoming has thus far already been outweighed because of the nation's reduced work prices, that have provided Vietnam a decisive benefit, he explained.
"Unskilled workers make about two-thirds less than in China, " Hundt stated. "this is why behind the existing revolution of factory relocations from Asia to Vietnam."
As prior to, labor-intensive production supplies the nation better options. However the professional landscape is evolving gradually.
"although it began utilizing the textile business in 1990s, the united states's manufacturing has become slowly moving into various other technological areas and into the creating of services and products eg washers, electronic devices and smart phones, " Hundt said.
Reforms and opening necessary
Top-quality foreign investment will depend on the ability associated with Vietnamese government to create a level-playing industry for several marketplace individuals, according to the World Bank. State-owned companies have so far been chosen in allocating credit also resources, distorting competitors.
The state-owned organizations account fully for about a 3rd associated with nation's gross domestic item, present studies conclude. Nonetheless, they have been known to be ineffective as they are only partially put through free marketplace rules and tend to be shielded by the government in case of troubles. Reforms are either delayed or not implemented.
But by the end of 2014, Hanoi wants to pass two brand-new laws and regulations targeted at opening state-owned companies to promote competitors, at least partially. The us government hopes to entice private investors with this specific move.
The state-owned flight, Vietnam Airlines, as an example, recently took the initial step within direction by providing 3.5 % of company's complete shares on the stock exchange in Ho Chi Minh City on Nov. 14. Hawaii, but nevertheless is the owner of a 75 per cent risk within the flight.
Cooperation with Germany
Samsung is spending huge amounts of dollars inside main Vietnamese province of Ha Tinh
With its efforts to reform the economy, Vietnamese government works closely with Germany. Since both nations signed a strategic relationship arrangement in 2011, Berlin has actually held a rule of legislation discussion with Hanoi. But there are considerable bureaucratic hurdles amongst the two countries.
"The Vietnamese government always has actually an open ear whenever businesses or organizations, like the European or American Chambers of Commerce, present the difficulties they truly are facing, " stated Hundt.
Nonetheless, thorough planning and professional advice for several businessmen who wish to be energetic in Vietnam is important, Hundt contends.