Center for WTO and International Trade Vietnam Chamber of Commerce and Industry (VCCI) Address: No. 9 Dao Duy Anh, Dong Da, Hanoi Phone: +84 (24) 35771458 Email: banthuky@trungtamwto.vn Web: www.trungtamwto.vn

As Vietnam is one of the most open economies in the ASEAN region and in the world, its market currently has the presence of many competitors from many different countries and regions.

According to ITC TradeMap, in 2020, Germany's exports to Vietnam reached USSD 3.4 billion and accounted for only 0.25% of Germany's total exports to the world.

Vietnam imports from Germany mainly inputs for production such as machinery and mechanical equipment; electronic machinery and equipment; iron and steel, chemicals, dyes, etc.

Vietnam has 3 sides bordered by the sea, so it is very convenient for trade activities. Vietnam's goods import turnover has continuously increased over the past years, reaching USD 262.7 billion in 2020, an increase of 3.7% compared to 2019.

The income of Vietnamese people has rapidly increased in recent years but is still at an average level compared to the region and low compared to the world. This is one of the main factors affecting the consumption behavior of Vietnamese people.

Vietnam is a developing country with a high economic growth rate in the region and in the world. According to the General Statistics Office of Vietnam, Vietnam's average GDP growth in the period 2011-2020 was 5.96%.

Geographical distance: Germany is geographically located far from Vietnam, so despite being very strong in logistics services, the cost to transport goods from Germany to Vietnam is still higher than competitors near/close to Vietnam such as ASEAN or Asian countries.

Vietnam is a big market with increasing the demand for high quality goods: Vietnam is one of the largest consumer markets in Asia: The population of Vietnam is currently ranked 3rd in the Southeast Asia and 15th in the world (World Bank, 2021);

German exporters can access the Vietnamese market through the following channels