Officials from Da Nang city and the Germany Business Association join a Memorandum of Understanding signing ceremony on investment promotion. (Photo: VNA) The proposal was discussed at the Memorandum of Understanding (MoU) signingceremony in the central city last week between the two partners, offeringinvestment opportunities for business partnerships between Germany and Da Nang inhi-tech industries, human resources training, information technology, logisticsand seaport development.
IPA Director Huynh Thi Lien Phuong said the investment from Germany to Da Nangwas still small with 11 projects worth 10.3 million USD – just 1% of the totalFDI projects in the city.
She said the city had been calling for the development of a deepseaport and logistics zone, as well as an airport to boost connections ofmulti-transport logistics industries.
Phuong said the MoU would open the doors to possible investment projects fromGermany in the micro-mechatronic engineering, precision electronics equipmentproduction, sensors and software industries.
German businesses are operating in Da Nang creating sports shoes and sewingmachine batteries.
The Central Agency for German Schools Abroad (ZfA) developed a pilot Germanteaching project at two junior secondary schools in the city in 2016, accordingto IPA.
Elmar Dutt, GBA Co-Chairman, said the association started activities in Vietnamin 1995, and the GBA has been the focal point of German business life, culture,and values in Vietnam for 28 years.
“We have helped German businesses in developing their operations in a widerange of fields and created opportunities for business and social exchangeacross Vietnam.
“GBA – one of the founding members of EuroCham Vietnam – has more than 350members. Over 700 German enterprises call Vietnam their home, creating around100,000 jobs and investing directly and indirectly to the country to the tuneof 10 billion USD,” said Elmar Dutt.
He noted that energy security was a major pain point in parts of Vietnam andthe GBA encouraged all provinces to increase resilience and ensure thestability of electricity supply to increase attractiveness for foreigninvestors.
Environmental protection and sustainability should also be priorities of alllocal, provincial, and national level government agencies. Pollution and otherharms to the environment must be eliminated by regulations and more efficientenforcement, he said.
He urged simplifying and digitalising administrative procedures, in particularin the areas of customs, cross-border finance and operations.
“Our members face daily challenges in these areas resulting in delays,avoidable costs and a slow down of business activities. Some examples are redtape on promotions that involve discounts, VAT refunds, and customs clearance,”he shared.
He explained that it should eliminate local testing requirements for EuropeanCertified products in all sectors to foster free trade with the European Union.This would also make it easier to import necessary machinery and parts.
Elmar Dutt called for further easing of licensing, work permits and visas.
According to the IPA, Da Nang saw a boom in the development of householdrooftop solar power, but this was halted by a blockage in policy from thegovernment.
Germany plans to open a representative office in Da Nang to boost cooperationand investment in the coastal city and the central region as a whole.
Last year, the IPA and Bremen's economic development agency BremenInvest signedan MoU on cooperation and investment promotion.
Vice Chairman of the municipal People’s Committee Ho Ky Minhcommitted that the city had been calling for stronger and deeper investmentfrom Germany and European countries in seaport development, infrastructure,hi-tech industry, education, and IT.
Minh said the city would create optimal conditions for German businessesseeking investment opportunities in the long term in Da Nang.
Earlier this year, Da Nang had investment promotions with theUnited Arab Emirates (UAE), Japan, and the UK.
Da Nang and the UK city of Birmingham signed minutes on cooperation in five keysectors – economics, trade and investment; digital infrastructure construction,innovation and technology and fintech; education and training; sustainabledevelopment and circular economy; and sports, tourism and cultural exchanges –in March.
Six IZs and a high-tech park have attracted 503 projects, including 130 FDIworth 1.8 billion USD and 27.56 trillion VND (1.2 billion USD) from domesticinvestors.
The US-based aviation firm Universal Alloy Corporation, as well as Korea’s LGElectronics, have already started their operation in Da Nang, while Samsung Vietnamhas launched its Innovation Campus in the city./.
VNA
