Alexander Ziehe, Chairman of the German Business Association
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The German Business Association (GBA) has been playing a pivotal role in strengthening bilateral cooperation between Vietnam and Germany. In an exclusive interview with The Saigon Times, Alexander Ziehe, new chairman of the GBA, revealed the ambitious vision of the new board amidst Vietnam’s evolving business landscape. Excerpts:
The Saigon Times: The GBA has a longstanding commitment to supporting German businesses in Vietnam and strengthening cultural ties between the two nations. What does the new board plan to do to uphold and advance these important missions?
Alexander Ziehe: Indeed, maintaining these missions is at the cure of our agenda. Working closely with our partners at the German Chambers of Commerce Abroad (AHK), our aim is to ensure that the business community in Vietnam receives exceptional support and remains highly motivated. Vietnam offers a wealth of opportunities as an investment destination, particularly with the emergence of new sectors. For example, there is growing interest in green technologies, driven by the Government’s commitment to achieving carbon neutrality. Additionally, Vietnam. boasts a robust consumer market experiencing significant growth.
At the GBA, we are dedicated to fostering increased collaboration between our counterparts in Germany and Vietnam. Through our extensive network, we provide business and political representatives with valuable. connections, create environments. for knowledge-sharing, and assist companies in understanding the opportunities and challenges of investing in Vietnam. This approach allows as to cultivate genuine enthusiasm for Vietnam as an investment destination. The more German firms engage, the more opportunities emerge. Therefore, it is essential for us to actively promote Vietnam as a promising investment hub.
What unique opportunities does Vietnam offer German investors and entrepreneurs that they might not find elsewhere?
Vietnam’s strategic location at the center of Southeast Asia presents a multitude of unique opportunities for German investors and entrepreneurs. From a geographic perspective, Vietnam serves as a pivotal hub. for trade within the region, boasting robust infrastructure and connectivity. This makes the country highly appealing as a manufacturing hub, offering German businesses the chance to diversify their supply chains effectively.
The Covid-19 pandemic under scored the importance of diversification in supply chains. Vietnam’s strategic location allows businesses. to spread their operations across different countries, mitigating risks associated with relying solely on one location. This flexibility is invaluable in maintaining business continuity in times of disruption. In key sectors such as food and beverage, consumer electronics, and light industry, Vietnam has already established a significant industrial footprint. This presents German investors with a major opportunity, supported by competitive labor costs, expanding infrastructure, and favorable market conditions.
Initially, German investments in Vietnam were primarily export-oriented. However, there is a growing trend towards establishing manufacturing bases to cater to local consumers. This shift acknowledges the diverse needs of the Vietnamese market, which may differ from those in Germany. By aligning production with local demand, German businesses can capitalize on emerging opportunities in the Vietnamese market.
Furthermore, Vietnam’s burgeoning service industry offers additional avenues for German entrepreneurs Service providers catering to industrial clients, as well as professionals in fields such as design, architecture, and logistics, are finding opportunities to establish their operations in Vietnam. That is how the community grows.
Given Vietnam’s dynamic market and the incentives provided by the free trade agreements Vietnam has signed, are there specific industries that the new board will prioritize? Where do you see room for further improvement?
Our focus is to support all our members operating across various industries, rather than prioritizing a specific sector. Through our monthly business meetings and networking events, we aim to facilitate cross- industry collaboration, enabling our members to build networks, ex change insights, and gain valuable knowledge.
However, we recognize emerging trends in Vietnam’s market land- scape, as well as shifting investment patterns towards sustainability and environmental responsibility. Therefore, we are particularly attentive to opportunities in energy efficiency, both in building construction and manufacturing processes.
Furthermore, with the resurgence of tourism in Vietnam, we anticipate Increased investment in the hospitality sector, including the construction of new hotels and infrastructure pro- jects such as the development of a new airport near HCMC. As a result, we will closely monitor these developments and explore opportunities for our members to engage in high-level investments in the tourism industry.
It’s essential to acknowledge that Vietnam is still in a phase of development, and there are challenges such as bureaucratic administrative processes and paperwork. As an association, we assist our members in navigating these challenges and provide support to those interested in doing business in Vietnam. Additionally, we actively engage with the Vietnamese Government to voice concerns and suggestions for improving the business environment. The Government’s receptiveness to feedback from the foreign community is a positive aspect of Vietnam’s business landscape, demonstrating a commitment to continuous improvement and collaboration. While progress may take time, the willingness to listen and collaborate towards a common vision is evident, highlighting Vietnam’s potential as an attractive investment destination.
German President Frank-Walter Steinmeier’s recent state visit to Vietnam highlighted sustainable energy as a key area of bilateral cooperation. What do you think the GBA can do to contribute to facilitating potential partnerships in this sector?
There are indeed abundant opportunities within the sustainable energy sector, particularly considering the presence of numerous German manufacturing companies in Vietnam, which are among the largest energy consumers. As such, they are deeply impacted by all aspects of energy consumption and production. One significant opportunity for collaboration lies in the development of decarbonization concepts for Vietnamese supply chains.
German firms have long been at the forefront of utilizing energy-saving technologies, such as rooftop photovoltaics, to generate energy for both consumption and production. They have also pioneered in implementing more efficient machinery and practices. It is crucial that we not only transfer this knowledge to Vietnam but also guide our Vietnamese partners towards global standards in energy efficiency, Even modest efforts in this direction can yield substantial improvements.
German technology is poised to play a significant role in Vietnam’s sustainable energy initiatives. Many of our GBA members are engaged not only in engineering but also in solar and offshore wind energy projects. The encouraging aspect is that these companies are already established in Vietnam. Now is the time for collaboration with the Government and private sector partners to fully realize these opportunities and translate them into tangible outcomes. I am pleased to note that our members are fully aligned with the expectations set by President Steinmeier’s visit.
Vietnam is aiming for higher-value manufacturing and integration into global supply chains. Where do you believe German businesses could add specific value within Vietnam’s economic transformation?
German businesses have a multitude of avenues through which they can contribute to Vietnam’s economic transformation. One of the key initiatives we undertake at the GBA is our “member-for-member” workshops, where German firms share practical concepts and expertise from Germany with both local and international partners. These workshops serve as a platform for knowledge transfer and exchange, allowing us to introduce valuable insights to the Vietnamese business community.
Throughout the past year, we have organized numerous workshops. covering topics such as administration improvements, green concepts, and marketing strategies. However, the overarching objective remains consistent to provide Vietnam with. valuable expertise that facilitates economic transformation and fosters high-value manufacturing. I actively encourage our members to participate in these workshops, as they serve as a conduit for acquiring new knowledge and generating innovative ideas.
Beyond business connections, how does the GBA foster stronger cultural understanding and promote people-to-people exchange between Vietnam and Germany, which has been a focus of the GBA’S efforts over the years?
I’m thrilled to say that the GBA Oktoberfest has become a renowned event for fostering people-to-people exchange. Oktoberfest, as you know, is a quintessential German festival, and I’m proud that the GBA provides an exceptional opportunity for locals to immerse themselves in German. culture. The new board is just as com- mitted as the previous one to enhancing this experience even further.
In addition to Oktoberfest, we host a variety of other exciting events that bring together the communities of both countries. These include signature sports events and networking gatherings designed to create a relaxed environment where attendees can get to know each other beyond the realm of business. Our goal is not only to promote German traditional values but also to ensure that individuals from Germany become well-integrated into Vietnamese culture. Drawing on the strong foundation of Vietnam Germany relations, we believe there are many more achievements to come in terms of fostering cultural under standing and facilitating meaningful people-to-people exchanges.
Reported by Do An