Thriving trade between Vietnam and Germany at Automechanika

With Germany sitting at the top of the pile in terms of Vietnamese automotive imports, and thanks to support from the country’s Federal Ministry of Economics and Technology, a dedicated German country pavilion will debut at the upcoming edition of Automechanika Ho Chi Minh City. Over 8,500 trade buyers will converge with around 360 worldwide exhibitors and key industry players, from all corners of the automotive service sector.

According to the latest information from the General Department of Vietnam Customs, Germany is currently Vietnam’s largest import market and its second largest European export market (after the Netherlands). With the total export turnover between the two countries recently reaching US$4.6 billion, the largest industries within this are related to machinery, equipment and spare parts. Most importantly, Germany is one of the major markets supplying complete automobiles and components to the region. In the first six months of 2017 alone, the total volume of completed cars and related components stood at US$126.5 million. [1]

In addition, 2016 saw the European Commission publish the details behind a free trade agreement between the EU and Vietnam, which is expected to come into play by the end of 2017. Under this agreement, cars, motorcycles and related parts exported from the EU will eventually become duty-free, in the hope of Vietnam becoming the new hotspot for Asia’s automotive manufacturing sector. [2]

Keeping in line with the region’s strong connections to Germany, the dedicated pavilion at Automechanika Ho Chi Minh City is expected to house numerous prominent German companies and manufacturers who are looking to capitalise on this opportunity. Joining the German pavilion will be various other international exhibitors, over 360 companies will exhibit in an expected 9,200 sqm of space. These come from China, Hong Kong, India, Indonesia, Italy, Korea, Malaysia, Singapore, Taiwan, Thailand, the UAE, the UK, the US, Vietnam and many more.

The second edition of Automechanika Ho Chi Minh City focuses on the eight core product groups: Parts & Components, Electronics & Systems, Accessories & Customising, Repair & Maintenance, Dealer & Workshop Management, Car Wash, Care & Reconditioning, Alternative Drive Systems & Digital Solutions, and REIFEN a new product group for 2018 dedicated to tyres. The upcoming fair is also extending its product portfolio to better reflect the local market, with the ‘Tyre Competence’ and ‘Motorcycle Competence’ labels allowing visitors to explore the unique needs of the Vietnamese automotive industry, by highlighting exhibitors from the well-established tyre and motorcycle sectors.