Germany is diversifying investments in Asia.  Vietnam in the crosshairs

Germany is diversifying investments in Asia. Vietnam in the crosshairs

German President Frank-Walter Steinmeier is accompanied on his visit to Vietnam by a large business delegation, including leading companies in the construction industry, wind farm production and industrial suppliers, as Germany seeks to diversify its investments in Asia.

According to the German Chamber of Commerce in Vietnam, German companies have already invested more than $3 billion in the production center in the Southeast Asian region. The main investor, Bosch, sees Vietnam as an important partner in diversifying some of its activities in China.

Among the participants in President Steinmeier’s business mission is Herrenknecht, which dominates the global market for tunneling machines. It already sells tools for the construction of the Ho Chi Minh City metro, as Vietnam plans to expand its rail and metro systems. Wind farm developer PNE AG is also opening a new investment chapter there, trying to capitalize on Vietnam’s planned expansion in offshore wind energy.

The German president is also accompanied by the international construction materials company Knauf Gips KG and automotive supplier Tesa. Both companies already operate in Vietnam.

Vietnam – an alternative to China

During the visit, President Steinmeier and German Labor Minister Hubertus Heil are expected to sign a memorandum of understanding on the mobility of skilled workers with their Vietnamese counterparts to facilitate the arrival of Vietnamese workers in Germany.

The visit “shows Germany’s interest in looking beyond China and diversifying economic relations,” says Florian Feyerabend from the Konrad Adenauer Foundation in Vietnam.