EVFTA spices up German healthcare companies’ appetite for Vietnam
Despite huge interest, German healthcare companies face challenges to access the Vietnamese market.
A recent survey has revealed Vietnam is an attractive investment destination for German companies in the healthcare sector, especially when the EU-Vietnam Free Trade Agreement comes into effect in July 2020.
| Illustrative photo. Source: Vinmec|
German multinational companies and German SMEs confirmed their interests in doing business in Asia (86%) and 66% of them showed huge interest in the Vietnamese market and intended to set up their businesses in Vietnam, according to the survey conducted in January 2020 by GIC/AHK Vietnam in collaboration with German reputable professional associations in the healthcare sector.
The survey counted with the participation of 39 German companies from different branches: medical technology, pharma and biotechnology, in order to identify the interests and the needs of German firms, their intentions and their expectation as well while researching and approaching the healthcare market in Vietnam.
One of the most effective strategies to approach the Vietnam’s markets are using branch establishment and cooperation with local partners in Vietnam. 54% of German firms found challenges in finding necessary market information, information on registration process, local regulations or import duties for their products.
In addition, linguistic and cultural differences could affect their investment intensions in Vietnam (43%). Meanwhile, 37% of the participants had difficulty in searching for appropriate local partners and workforce in Vietnam.
Germany is currently the most important trading partner country in the EU and the second largest exporter of medical equipment to Vietnam, with the total import value US$153 million in 2018, behind only the US.
From August 2019, German Federal Ministry for Economic Affairs and Energy has officially appointed a contact person in GIC/AHK Vietnam to support and connect German small and medium-sized enterprises in the healthcare industry.
- Vietnam startup scene poised for new heights in 2022
- FDI inflows to Vietnam remain resilient despite global uncertainty: World Bank
- European businesses confident in Vietnam’s investment environment
- Vietnam is among top expansion destinations for Indian companies
- IFC and partners to develop US$300-million “super port” in Vietnam
- FDI to Vietnam set for booming period in 2022
- European businesses to increase investment in Vietnam
- Australia-Vietnam Leadership Dialogue to boost economic opportunities in Vietnam
- Investors optimistic about Vietnam's M&A market
- Vietnam - a major driver of global trade growth by 2030
Hanoi gives SEA Games 31 warm, thoughtful welcome
Dream of a riverside city
Hanoi promotes tourism among visitors attending SEA Games 31
The Vietnam-US comprehensive partnership facilitates investment activities: PM
FPT opens new office in New York, 10th in US
Vietnam’s e-commerce: driver for economic recovery in post-Covid-19
Vietnam, Qualcomm boost cooperation for 5G development
SEA Games 31 delegates get free Hanoi Bus Tour
Vietnamese PM meets American giant corporations in Washington