tv Business Deutsche Welle March 25, 2019 2:45pm-3:01pm CET
i mean let's do business while china and the u.s. tussle over trade multinational companies staking out the next big growth opportunity vietnam is just across the border from china it's one of the largest countries in the region as german economy minister pay to buy a points out and it's a cheaper place than china to do business. there's a strong interest in working together here quoth from german and vietnamese companies there are a lot of renewable energy firms who want to expand their presence here in vietnam. it's in germany's interest to be a partner to all nations in the region and that applies especially to vietnam because in the next three years this country will become more and more important. and the vietnamese economy continues to grow one of the fastest rates in the world we'll talk about the opportunities in a moment with our correspondent. first is report. when
don't try and take his daily tour of the factory floor he likes what he sees he runs the vietnamese subsidiary of sparks on the u.s. based electronics company and business is booming right now ever since the americans raise tariffs on imports from china more and more companies have been seeking to move their production from there to other countries and many of these are looking just across the border into vietnam the last six months an acceleration i would say it's about two to three times more than the last twenty four months so . you know the trade challenges you know keith people motivations to do it fast you know conservatively instead of having the transfer of land they want to do it right away like yesterday they want to move. to trade conflict is expected to boost vietnam's economy by an additional half a percentage point. but even before the u.s. china dispute did not become a hot spot for foreign investors they say factors that make vietnam attractive are
no wages a young and skilled workforce and very little red tape. setting up a company is a quick and painless process in general you can have everything up and ready to go within three to four months because there are well developed industrial parks that include turnkey factories or ranch and. in other words it takes just six to eight months from the time you make the decision to found a company until you're pressing the first buttons in your production line and. very very fast again because of. conditions like these are bringing in chinese investors from across the border to. change why help chinese companies relocate to vietnam at the moment she swung through their quests here in investors building a factory to manufacture solar panels vietnam's proximity makes the destination of choice for many chinese businesses. so what. are experts in
china who believe vietnam will soon be the most important production hope in sight these days. that's why i think investments here will keep rising i'm certain that more and more chinese will be coming here to invest in vietnam. to trade dispute between the world's two biggest economies is playing out vietnam's favor but even if the dispute ended tomorrow business in vietnam doesn't look like it will slow down anytime soon. is accompanying the german economy minister on his business trip to vietnam and joins us from hanoi at a time of trade tensions and trump scrapping free trade deals how's that e.u. free trade deal coming along with it up. well economy minister peter said again today when i asked him where they are at at the moment with that free trade agreement are saying they're working hard to get it ratified
it's been taking a while and i think one of the reasons why it has been taking such a long time is because there have been there has been picked up in relations between vietnam and germany and that's because of vietnamese national that was allegedly kidnapped by the vietnamese government on german soil and then taken to vietnam and that's caused souring of relations between the two countries initially he was supposed to be sentenced to death and then after an intervention from the german government he knew was it was sentenced to life in prison but that is of course that has been a problem and another problem that we're hearing and this is rather interesting is that all the e.u. translators are busy with all the bricks it documents and that's why they're not getting around to translating all those documents for the e.u. for that for that free trade agreement and that could be another factor so funny to see what ripple on effects that has and all that say could become
a second china at some stage for the world economy. but i think vietnam has a lot going for it has a young labor force and wages are a lot cheaper than in china but it's also important to note that vietnam has some ninety five million people in china has one point three billion so it's a completely a completely different situation and i don't think you can compare the two countries in any way apart from the fact that you nom of course is trying to emulate this model to a certain degree of being strong in experts and strong in production and that's what they're doing right now and with the reason why the companies are moved. into vietnam from china is because it's because the wages there are rising and here they're low and it's very easy to set up these companies here in vietnam but also and that's also important it depends on what kind of business you want to move here
if it's just assembly if it's just production then i don't like that is that is easy to do but then i've spoken to experts and they say if it's r. and d. then companies will still stay in china because they have capacities there that they've built up for decades and us and that is thank you very much for joining us there from vietnam the stock market's a sliding on global growth fears today but do the germans know something the rest of the world doesn't after half a year of decline the closely watched index shows recovering confidence among business leaders this month is a surprise to analysts saying could signal that europe's largest economy is back on an upswing. let's bring in terence first he's president of the institute and knows why things go up and down at the organisation tell us where is all the confidence actually coming from. good afternoon it's mainly coming
from the domestic sector as we still have road to be strong employment growth in germany we still have strong wage growth and that has an impact on retail which is going well the good news is coming from services in general and it's also coming from the construction industry which continues to benefit from low interest rates and strong construction activity and that's the upside the downside is manufacturing here of the readings continue to decline export demand is relatively weak so it's the it's a divided economy the domestic sector is strong exports are weak well that is a concern isn't it because germany is so dependent on the health of the global economy and everyone's worried about growth right now. absolutely in a way the german economy is turned on its head the usual picture is strong experts and the domestic sector which is less strong but now the situation is entirely different so we have strong domestic demand that's what's keeping up the economy
and exports are declining the question is of course given the strong export dependency overall of the german economy how long can for instance the service sector insulated serve from the weakness in industry so in the long term the german economy clearly can't grow if exports aren't going well you know your index looks ahead six months from now how are things going to look in half a year when it comes to global trade tensions and breaks it. where companies are slightly more optimistic now although little has been resolved so the uncertainty regarding bragg's it hasn't gone away if anything hard drugs that has become more likely now with the deadline twelve of a prevalent a little progress in the u.k. regarding what the u.k. government wants and the conflict the trade conflict with the us is looming car tariffs are not off the table so it seems currently most companies expect
a positive outcome in these areas but if things go bad if we do get the car terrace for instance this optimism may go away very quickly what do you think is going to happen over the coming days and weeks as far as briggs a goat. this is very hard to predict but i haven't given up hope that there will be some sort of agreement although it's going to be very difficult because. a longer delays something until june like the what the u.k. government has asked for is very difficult to accommodate from the e.u. side it would be much better to extend the deadline by something like two years but that would require the u.k. to do the european elections also very difficult so i think there is a real risk that we will get a harbor exit brags that although nobody actually wants it and another two years of uncertainty that would be absolutely horrible. thank you very much for joining us and thank you for your insight from the if i win there thank you kiran.
strengthened and its stock index was boyd on the news that the party looks poised to form a government after the first election since the twenty fourteen coup has already been asia's best performing currency this year erodes further despite opposition complaints that the voted not being fair investors believe. china will continue economic reforms in southeast asia second biggest economy thailand share markets also outperform their peers selling off less than other global markets. and it's show time for fashion designers the international fashion week in beijing kicked off on monday at the traditional crosman chip was blended into modern designs if all goes well we'll see these eye catching unusual patterns and bright colors on the streets all over the world so. if people did to wear these suits and
dresses out on the streets this year more than one hundred fifty international design is showcase their collections. finding what you ordered online might not be the real deal the german custom services seized a five million packages with counterfeit products last year alone that's an increase of fifty percent of the previous year the fake products had a valuable weighs two hundred million euros two thirds were shipped from china mostly fake jewelry and sunglasses but also electronics like counterfeit smart phone. services with it.
the mob was forced to slow. cautious the flow. pipeline construction the more the columbia destroyed swathes of rainforest. to compensate you for surpluses elsewhere. the gas company foots the bill. for the deal pay off for me and. three zero zero nine. zero zero. zero zero zero zero feel of the well. where i come from but all of that to get to cisco it's just like with chinese food doesn't matter where i am it's a list of minds me of home after decades of living in germany china is flotus one of the things i miss the most but by picking up that bag i see if they are going to tell the difference me knowledge benefits a person as american nation that exists the other part of the border haven't been
implemented in china that's new but i'm. the tax people wondering if they're going to take it and if your have a right to. that is this is their job just understand how i see it and that's why i left my job because i tied to do it exactly. by name. and i want to ask you. what's the connection between. home and the european union he knows. correspondent at the baker stretch this week in line with the answer by the. top. recipes for success strategy that make a difference. baking bread on. live