The gaze of German companies turns to Vietnam. Before heading to the G20 summit in Indonesia, Chancellor Olaf Scholz made a stop in Hanoi on Sunday. At the center of discussions with Vietnamese Prime Minister Pham Minh Chinh, the development of commercial ties between the two countries. Germany is looking to expand beyond its Chinese hub.
For the first visit by a German leader in a decade to Vietnam, Olaf Scholz is playing the role of scout for German companies in Hanoi. They are looking for new sites in Asia to reduce their dependence on China.
Traditionally, it is precisely China that is the nerve center of German trade in Asia. Nearly 5,000 German companies operate there and they are currently looking to expand their business.
Hanoi’s second largest trading partner in the EU
Vietnam then becomes the first choice. Germany is already Hanoi’s second largest trading partner in the European Union after the Netherlands. nearly 500 German companies are already established there, such as Bosch and the industrial gas distributor Messer. And this number is only expected to increase. Vietnam is playing an increasing role in global supply chains.
The German Chancellor also announced his support for Vietnam’s transition to a green economy, in particular by financing the metro network in Hanoi.
Next stop for Olaf Scholz, Singapore. It is the only other Southeast Asian country to have concluded a free trade agreement with the European Union.