German investors like good laws

HCM CITY — Visiting German Chancellor Angela Merkel said yesterday that a reliable legal framework was one of the essential conditions for German businesses to invest in Viet Nam.

Speaking at the Germany - Viet Nam Economic Forum in HCM City yesterday, she said German businesses also need a transparent administrative mechanism "without red tape and subsidies," and good infrastructure.

Germany to grant $598m for development projects

HA NOI — Germany will provide Viet Nam with financial assistance totalling US$598 million for development of infrastructure and human resources, the German Embassy in Ha Noi has announced.

A co-operation agreement was signed on Monday, witnessed by visiting German Chancellor Angela Merkel and Vietnamese Prime Minister Nguyen Tan Dung, creating the foundation for German assistance to eight bilateral development projects in Viet Nam, a press release from the embassy said.

The assistance would be focused on environmental protection, adaptation to climate change, urban development, energy, job training and healthcare.

German Development Bank KfW will be responsible for disbursing the money to the projects, which come within the framework of the negotiations between the two governments in Bonn in October 2010.

With the assistance, Germany will retain its status as one of the major donors to Viet Nam. — VNS
She urged Viet Nam to continue with its open-door policy as well as a privatisation process.

Since investments by German companies would be for the long term and they had advanced technologies, they were in a good position to participate in Viet Nam's modernisation process, she said, citing the example of HCM City's underground project.

Deputy Prime Minister Hoang Trung Hai highlighted the potential opportunities for bilateral co-operation.

"Viet Nam's socio-economic development strategy in 2011-20 focuses on major targets with a stress on quality, effectiveness, sustainability, human-resource development and skilled labour," he said.

Higher priority would be given to investment in projects that use high technology and are environmentally friendly.

Since adopting its renovation policy, Viet Nam had achieved average annual economic growth of 7 per cent in recent years.

The country had managed to contain its high inflation, stabilise the economy, and address businesses' difficulties.

This year actual FDI inflows in the first nine months were US$8.2 billion, a year-on-year increase of 2 per cent.

German investment in Viet Nam remained modest at $850 million in 167 projects, just fifth among EU economies and 24th overall.

Bilateral trade had topped $4.1 billion last year.

"This economic forum is an important event in the German chancellor's working visit to Viet Nam and it also serves as a chance for Viet Nam to deliver its messages on trade and investment and its strategic development orientation to German investors and companies," Hai said.

Viet Nam appreciated the economic co-operation extended by Germany, he stressed. — VNS

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