Vietnam, Germany Stride toward a Brighter Future Although German investment in Vietnam is still below economic potential, the German Consulate General in Ho Chi Minh City is doing everything to encourage German businesses to find a niche in the Vietnamese market. Vietnam Economic News' Duy Khang spoke with German Consul General Heinz Peter Seidel.

Putting Vietnam On Europe’s Shelves A Vietnamese has worked for the past 20 years to introduce Vietnamese producers to European importers

Asia-Europe meeting to foster economic cooperation More than 100 delegates from the EU and 17 Asian countries met in HCM City last week for a two-day forum to find ways to enhance trade and investment between the two continents. Delegates at the Asia Invest Forum 2003 discussed future directions for Asian-European economic cooperation, the impact of ASEAN economic cooperation and integration, and ways to attract foreign investment. They also dealt with the promotion of European-Asian economic initiatives and a framework for investment partnerships in Asia. Another goal of the forum, organized by the European Chamber of Commerce in Vietnam, was to promote the exchange of views and experience of the best practices and strategies in trade and investment promotion. Speaking at the forum, Nguyen Bich Dat, deputy minister of planning and investment, said Vietnam would apply the same tax policies to all enterprises next year and phase out price and fee discrimination against foreign investors to create a level playing field. The move is part of the roadmap to ensure equal treatment to enterprises from all economic sectors, he said. "Foreign investors will also be provided with equal access to capital, land, labor and low-priced services as well as favorable conditions to lower production costs." Vietnam-EU trade in the first eight months rose 25% year-on-year to US$4 billion. The EU is Vietnam's major foreign investor with 361 projects worth US$6 billon. The forum, which is part of the Asia-Invest Program initiated by the EU, attracted 22 organizations in Asia and Europe, including chambers of commerce, business associations, trade and investment agencies and professional organizations. According to Carl Henrik Hall, managing director of Asia Invest, the EU provided 30 million euros for 160 projects under the program in the period 1997-2002 to benefit small and medium enterprises in Asia. China had 50 projects and Vietnam 35. About 41 million euros will be provided during 2003-2007. (The Saigon Times Weekly November 8,2003)

Vietnam attracts US$2 billion in foreign investment in Jan.-Sep. '03 Vietnam attracted US$2.06 billion in foreign direct investment (FDI) in the first 10 months. According to the Ministry of Planning and Investment (MPI), 496 fresh FDI projects worth US$1.236 billion were licensed in the period, down 20% in the number of projects and 6% in capital compared with the same period last year.Meanwhile, 289 operational projects were allowed to raise capital by US$768 million, down 22% in number of projects and 18% in capital. The capital increase came mainly from projects in industry. HCM City was the leader in FDI attraction with US$371 million. The four top foreign investors are Taiwan (US$238 million), South Korea (US$207 million), British Virgin Islands (US$ 183 million) and Australia (US$108 million). Foreign-invested enterprises achieved US$5.2 billion from exports in the first 10 months of this year and paid more than US$30 million in taxes. Their disbursed capital rose 5% year-on-year to US$2.2 billion. The MPI estimated that FDI inflow this year would reach US$2.3 billion, accounting for 16.7% of the total investment and up 6% on 2002. By October, Vietnam had nearly 4,200 FDI projects with total registered capital of US$40.2 billion. To promote investment, the MPI's investment foreign investment bureau plans to open three investment promotion centers in northern, central and southern Vietnam to provide potential investors with free information. (The Saigon Times Weekly November 1,2003)

IKEA, a leading distributor in Sweden, has decided to spend US$110 million buying goods from Vietnam this year, a threefold increase on 1998. The figure makes Vietnam the third largest Asian supplier for IKEA behind China and India. (The Saigon Times Weekly October 4,2003)

Trade promotion in Europe HCM City will send a trade promotion mission to Europe in October for a two-week trip to seek business opportunities. The mission led by HCM City Vice Chairman Nguyen Thien Nhan will comprise 40 officials and businesspeople, including representatives from foreign-invested companies in HCM City. According to an official from the Department of Planning and Investment, they will launch trade and tourism promotions in France, Germany and Britain; and meet local officials, businesses and overseas Vietnamese to introduce trade and investment opportunities in HCM City. In Lyon, France, the promotion will focus on biotechnology, information technology, public transport and tourism. In Stuttgart, Berlin and Cologne (Germany), the mission will present opportunities for investment in the hi-tech, infrastructure, voca-tional training and tourism. In London, they will study the financial market, meet financiers and visit a world tourism fair. This will be HCM City's third trade promotion trip to Europe. (The Saigon Times Weekly September 27,2003)

No more red tape and complaints. The Weekly talks to Mr. JÜRGEN BRAUNBACH, German Business Association chairman and chief representative of Schenker in Vietnam. He has spent nearly 10 years here, since early 1994 Are Vietnam's measures to attract more foreign investment working ? The GBA strongly supports recent efforts made by the central and HCM City governments. We can see clearly that by opening representtative offices in Dusseldorf, Germany, and in Japan and the U.S., Vietnamese authrities have indicated their wish to promote business opportunities in Vietnam to foreign business communities instead of waiting for them to come. more

A Strong Boost to German Investment in Vietnam German Minister of Economy and Labor WOLFGANG CLEMENT, who accompanied Chancellor Gerhard Schroeder during his mid-May tour of Southeast Asia, granted an interview with The Saigon Times Weekly

The First Metro Project During German Chancellor Gerhard Schroeder's visit to Vietnam, HCM City Chairman Le Thanh Hai signed a memorandum of understanding with Siemens for a project to build a metro system in inner HCM City Germay to Extend Support to Its Investors in Vietnam Vietnam-Germany Cultural and Scientific Ties The Chancellor's Visit Heading to the target First Commitment