German Chancellor Angela Merkel will pay an official visit to Vietnam in mid-October with an aim to bolster relations between the two countries in investment and other areas, the Minister of State at Germany’s Federal Foreign Office said on Monday.

Cornelia Pieper confirmed the news with the Daily after a press conference held in Quy Nhon City in the central province of Binh Dinh for German company Fresenius Kabi to provide further detail about the opening of its new factory.

Pieper said German Economics Minister Philipp Rösler and German companies would accompany the chancellor during her visit to Vietnam. At the press conference, Pieper did not reveal the chancellor’s agenda but said attracting more German investment into Vietnam was one of the major topics to be discussed during the visit as the two governments were determined to boost this.

Pieper said that German companies had invested some 400 million euros in projects in Vietnam. One of the important projects involving German investment is a metro line  in HCMC.

Pieper was optimistic about more companies operating in Vietnam in the years to come as the German government was encouraging local companies to invest in Vietnam.

Fresenius Kabi was evidence as the global leader in infusion therapy and clinical nutrition inaugurated a new production facility in Quy Nhon City on Monday. The opening ceremony was attended by Pieper along with many other high-profile guests from Germany and Vietnam.

Nearly 380 employees will work at the production facility. With the new plant, Fresenius Kabi will almost double its manufacturing capacity for infusion solutions and liquid medications.

Fresenius executives said most of the products made at the facility were intended for the Vietnamese market. The investment costs for this project are estimated at 20 million euros.

Fresenius CEO Ulf Mark Schneider said health care systems in Vietnam and other countries in Southeast Asia were developing at a rapid pace, so there was a constantly increasing demand for Fresenius Kabi products in these countries.

“Our new plant in Quy Nhon will help us meet this demand and allow us to make a significant contribution to high-quality, yet affordable health care in the region,” Schneider said.

Jan Walter, managing director of Fresenius Kabi for Vietnam, Cambodia and Laos, said over the last three years, the company’s sales in Vietnam had grown by over 20% every year.

“The new plant in Quy Nhon will significantly increase our production capacity and has the country’s most advanced production equipment for infusion solutions and liquid medications,” Walter said. “So we are well equipped for the further growth that we expect to see at Fresenius Kabi in Vietnam over the next few years.”

The Minister of State Pieper said the German government was supporting companies, particularly small and medium-sized enterprises, to invest in foreign markets, including Vietnam through joint venture and other investment forms. Therefore, she expected an increase in German investment from SMEs.

Pieper said the German Foreign Office planned to cooperate with companies to organize workshops on economic cooperation for SMEs in Berlin and Vietnam. She emphasized that relations between Germany and Vietnam would develop not only in economy but also other areas, including education which will serve as a firm foundation for the stronger links between the countries.

VIR