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Vietnam has many opportunities to expand exports to Europe

Monday, 02 February 2015

Germany now ranks at 6th place amongst the largest export markets in the world including the US, Japan, China, Australia and Singapore and is a member of the “billion dollar club”.

The country is also the second largest importer in the world. Major import commodities are machinery, transportation, chemicals, tobacco, foods, beverages, metal and petroleum products. It is a potential market for Vietnam that has strong points in textile-garments, leather footwear and aqua products.

Germany has been one of Vietnam’s key partners in Europe since 2007. The country has also appreciated Vietnam’s development and position in Southeast Asia.  The friendly relations and multifaceted co-operation between the two countries have been strengthened, said Mr. Do Thang Hai, Head of the Trade Promotion Department under the Trade and Industry Ministry.

Germany has also committed to end the anti-dumping tax levied on Vietnamese leather footwear and is interested in kicking off negotiations for the Vietnam-EU Free Trade Agreement (FTA).

Major Vietnamese export goods to Germany include footwear, garments, coffee, furniture, aqua products, bags, wallets, back packs, suitcases, handicraft products, embroidered goods and agricultural products. However, the export turnover of Vietnam’s key commodities is lower than other countries such as China, Thailand and India.

Vietnamese enterprises should survey consumer habits of native customers much more carefully before shipping their products. They should focus on the quality and create skilful and diversified products, especially in handicrafts, to strengthen exports. On the other hand, they have to have a concentrated business strategy and create a larger production base, Mr. Thang added.

Thomas Hundt, Germany’s Trade & Investment chief representative in Vietnam, pointed out that businesses must meet both EU and German standards to enter this market. German regulations are stricter than in other countries. Top criteria are product quality, food safety and social responsibility, not using materials that may be inflammable or toxic. Vietnamese enterprises should also gather more information on requirements of their partners before signing contracts.
Source: Saigon-gpdaily