Germany To Import Skilled Labour From Vietnam As Part Of De-Risking Strategy

A German business delegation, including top firms for tunnel machines, wind farms and industrial supplies, is joining President Frank-Walter Steinmeier in a visit to Vietnam starting on Jan 23, as Berlin pushes its China de-risking strategy.

German companies have invested over $3 billion in the Southeast Asian manufacturing hub, with automotive giant Bosch being the main investor, according to the German Chamber of Commerce in Vietnam, which sees the country as an important partner in diversifying some activities from China.

During the visit, Steinmeier and German labour minister Hubertus Heil are expected to sign with their Vietnamese counterparts a memorandum of understanding on skilled labour mobility to facilitate transfers of Vietnamese workers to Germany.

Among the companies participating in the business mission is Herrenknecht, which dominates the global market for tunnel boring machines. It is already selling tools for the building of the metro in Ho Chi Minh City amid Vietnam's plans to expand its railway and metro systems.

Wind farm developer PNE AG is also part of the delegation, possibly trying to tap into Vietnam's planned expansion in the offshore wind sector despite regulatory delays. Building materials multinational Knauf Gips KG and automotive sector's supplier Tesa are among the other participants. Both already have operations in Vietnam.

The visit "underlines Germany's interest in looking beyond China and diversifying its economic relations," said Florian Feyerabend, the representative in Vietnam for Germany's Konrad Adenauer Foundation, a think tank.