German investors poured $142 million into 21 projects in the first 10 months of this year. — Photo zing.vn

HA NOI (Biz Hub) — Viet Nam is becoming an attractive investment destination for German companies, but the country needs to enhance its competitiveness and improve its policies.

German deal to help VN companies go global HCM CITY — TUV SUD, a German provider of independent testing, inspection, auditing, certification, and training services, yesterday signed a memorandum of understanding with the HCM City Union of Business Associations to enlarge the scope of an earlier one signed in March. The March MoU saw the setting up of training courses in international quality, safety standards, and product and management system certification for HUBA's members in the textile and garment industries. Following positive feedback, the two sides decided to expand the co-operation to include other industries like electronics, medical devices, and food, Sathish Kumar Somuraj, general director of TUV SUD Viet Nam, said. Pham Ngoc Hung, permanent deputy chairman of HUBA, said the Trans Pacific Partnership and other free trade agreements that Viet Nam is negotiating would bring about global access for Vietnamese businesses. But to capitalise on this, local manufacturers would need to comply with stringent quality and safety regulations in importing countries, he said. Drik Eilers, board member of TUV SUD AG, said a growing middle class demanding higher standards of living and with growing concern for the environment led to an increase in technical safety, quality, and environmental regulations and standards adopted by countries. — VNS

This was said at a dialogue, entitled "Industrial development in Viet Nam, supply of skilled labour and other challenges," held by the ministry of planning and investment to seek further economic co-operation with Germany.

German Vice Chancellor and Federal Minister for Economic Affairs and Energy Sigmar Gabriel said that Viet Nam was regarded as an important partner of Germany in ASEAN and that many German businesses were seeking to invest in the country.

German businesses were showing interest in trade and training sectors of Viet Nam.

Sigmar added that Viet Nam needed to enhance its competitiveness, coupled with better policies to attract a greater number of German investors.

Minister of Planning and Investment Bui Quang Vinh said that there were untapped opportunities for Viet Nam in Germany, the largest economy in the European Union.

He stressed the importance of comprehensive co-operation between the two countries, especially in investment, trade and entrepreneurial training.

Vinh said that Viet Nam would work to increase economic co-operation in areas of strength between the two countries.

Statistics of the Foreign Investment Agency show that there has been an increasing inflow of German investments into Viet Nam since 2011.

In the first ten months of 2011, German businesses poured US$34 million into seven projects in Viet Nam, but the figures increased to $90 million and 18 projects respectively in the same period in 2013.

German investors poured $142 million into 21 projects in the first 10 months of this year. As of the end of October this year, there were 239 German projects in Viet Nam with a total registered capital of $1.336 billion. Germany ranks 22nd among the countries and territories with investments in Viet Nam.

Do Nhat Hoang, Director of the Foreign Investment Agency, hoped that foreign investments into Viet Nam, especially from Germany, will increase, given the country's stable political situation, abundant labour force and favourable policies, besides advantageous geographical location.

German investors also suggested that Viet Nam should improve the business and investment climate, and improve the legal system in line with the requirements of the World Trade Organisation.

At the dialogue, the two ministries signed a joint co-operation statement on entrepreneurial training in the 2014-16 period. — VNS