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| Vietnam is one of the 34 countries where German investors will receive better investment guarantees from the Government of Germany. (Photo: VNA) |
The move by the German Government aims to ensure that its country’s economy is not dependent on a single market.
The Handelsblatt newspaper cited a paper from the Federal Ministry for Economic Affairs and Climate Actions as saying that the German Government has decided to improve the conditions of investment guarantees for selected countries and territories.
If companies invest in one of the 34 listed countries, the deductible for the firms in the event of a loss will be halved. In addition, the warranty fees will also be reduced.
The 34 destinations consist of Vietnam, India, Indonesia, Malaysia, the Philippines and Thailand (South/Southeast Asia); Georgia, Kazakhstan and Uzbekistan (the Caucasus/Central Asia); Argentina, Brazil, Chile, Colombia and Peru (South America); Albania, Bosnia-Herzegovina, Kosovo, Montenegro, North Macedonia, Serbia and Turkey (Europe); and Egypt, Algeria, Ethiopia, Benin, Côte d'Ivoire, Ghana, Kenya, Morocco, Rwanda, Senegal, Togo, South Africa and Tunisia (Africa).
Investment guarantees are central to the foreign trade policy of Germany. If a company invests in a developing or emerging country, it can apply for insurance from the Federal Government. If the company has to write off its investment due to expropriation, war or law violation in the country of its investment, the German Government will reimburse most of the loss.
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| The Thai Hoa - Lien Son - Lien Hoa Industrial Park in Lap Thanh district, Vinh Phuc province (Photo: VNA) |
As of June 2023, the Federal Government secured around 30 billion EUR (31.7 billion USD) in investments.
The improvement of the conditions of investment guarantees aims to encourage German businesses to invest in some countries that haven’t been tapped into.
Franziska Brantner, State Secretary at the Federal Ministry for Economic Affairs and Climate Actions, said that with the new incentives, Germany looks to strongly support its economy which is in the diversification process to promote its resilience to crises.
The list of the 34 countries and territories were made basing on internal and external experience reports, their geographically balanced locations, and potential for German companies, according to the Handelsblatt newspaper./.