The German Business Association in Viet Nam Explores Investment Environment in Dong Nai

​(News Portal – Dong Nai) - On the morning of November 7, Vice Chairman of the Dong Nai Provincial People's Committee, Mr. Vo Van Phi, along with representatives from various provincial departments, welcomed a delegation from the German Business Association in Viet Nam to explore the investment environment in Dong Nai. The delegation, consisting of over 40 German companies, was led by Mr. Alexander Ziehe, Chairman of the German Business Association in Viet Nam. Also attending were representatives from the German Industry and Commerce Chamber in Viet Nam.  

Vice Chairman of the Dong Nai Provincial People's Committee, Mr. Vo Van Phi, speaks at the meeting 

At the meeting, Vice Chairman Vo Van Phi shared several key points about Dong Nai province. Located in the southern key economic region, the province is about 30 km from downtown Ho Chi Minh City and 40 km from the Thi Vai - Cai Mep port complex in Ba Ria - Vung Tau. By 2026, Long Thanh International Airport is expected to complete its first phase and be operational, creating a development impetus not only for the local region but for the entire southern key economic zone. This will allow Dong Nai to have multi-modal transportation connectivity, including road, air, rail, and inland waterways, boosting the province's economic growth.

With over 20 years of experience attracting FDI and the motto "The local administration accompanies businesses," Dong Nai has always encouraged and facilitated enterprises to invest, produce, and conduct business in the province. Currently, 46 countries and territories are investing in Dong Nai, with 1,679 projects totaling registered capital of USD 34.99 billion, including 12 German projects with a capital of over USD 273 million. German businesses in Dong Nai have been operating stably, achieving efficiency, and complying with regulations on investment, environment, construction, and labor, contributing significantly to the local socio-economic development. 

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Chairman of the German Business Association in Viet Nam, Mr. Alexander Ziehe, presents recommendations  

In terms of international cooperation, Dong Nai Provincial People's Committee has signed 41 memorandums and international cooperation agreements at the provincial level, with 14 re-signed agreements. Among these, Dong Nai has signed one memorandum of understanding with Bosch Viet Nam regarding cooperation in training and developing high-quality human resources to meet Industry 4.0 requirements.

During discussions with provincial leaders and departments, German businesses currently investing in the province raised several issues, including administrative procedures, land, and transportation infrastructure not meeting demand, particularly congestion in port and industrial park areas, which causes delays in the transportation of goods and materials. They also highlighted difficulties related to visa and work permit processes for experts and senior managers.

Mr. Peter Kompalla, Chief Representative of the German Industry and Commerce Chamber in Viet Nam, speaks at the meeting

The businesses also raised several concerns regarding customs, taxation, transportation infrastructure, logistics, import-export, land, semiconductor manufacturing, electronics, solar energy, and high-tech manufacturing incentives and policies. They proposed several suggestions, such as simplifying administrative processes through digitalization, shortening the procedures for permits, customs clearance, environmental approvals, and work permits, and digitizing administrative workflows to reduce paperwork. They also suggested reducing taxes for businesses expanding or reinvesting and encouraging investment in research and development for future technologies. Additionally, they called for continued improvements in transportation infrastructure, particularly road networks and logistics, to facilitate movement between Dong Nai, industrial zones, and major ports, especially the Ben Luc - Long Thanh Expressway and Ring Road 3. ​

Provincial department leaders respond to business recommendations 

Vice Chairman Vo Van Phi directed provincial departments, the Tax Department, and the Customs Department to respond to some of the businesses' concerns and acknowledged their difficulties, challenges, proposals, and recommendations for consideration and resolution to improve the province's investment environment.

Chairman of the German Business Association in Viet Nam, Mr. Alexander Ziehe, noted that the association has 400 member companies. Dong Nai is an important destination for German investment projects, with several prominent FDI projects from Germany attracted in the past 12 months, including major projects from Bosch, Schaeffler, Bayer, Neumann Gruppe, Friwo, and Framas. He expressed that the German Business Association is impressed by the open and professional environment Dong Nai has created for the foreign business community, making the province an attractive destination for German investors due to its strategic factors, such as easy access to seaports and airports and developed infrastructure.

The German Business Association in Viet Nam delegation takes a commemorative photo with provincial and department leaders 

Additionally, Mr. Peter Kompalla, Chief Representative of the German Industry and Commerce Chamber in Viet Nam, mentioned that the chamber had produced a YouTube video highlighting Dong Nai's potential and published expert articles introducing the province's strengths to German businesses. With its extensive network of chambers across Germany, Mr. Kompalla and his colleagues will continue to promote Dong Nai as a potential investment and trade partner.

The provincial leadership highly appreciated the interest of Chairman Alexander Ziehe and the over 40 German businesses regarding investment in the province. The meeting was an opportunity for provincial leaders and departments to exchange information with German businesses and investors, provide updates on investment planning and areas of interest, and address challenges to support the German companies interested in exploring investment opportunities in the province. Vice Chairman Vo Van Phi expressed hope that Mr. Alexander Ziehe would act as an effective bridge to introduce German partners to explore, invest, and do business in Dong Nai. He also hoped that German companies would continue to support and collaborate closely with the province in the future. ​