The World Economic Forum on ASEAN countries has begun in Vietnam — a fitting host given its status as the fastest-growing economy in Southeast Asia. Manuela Kasper-Claridge reports from Hanoi.
Image: Reuters/Kham
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The bridge across the Bach Dang is brand new. Twenty-five meters (82 feet) wide and 3 kilometers (1.8 miles) long, it spans majestically across the large mouth of the river near the port city of Haiphong in northern Vietnam.
There is a lot going on here; the Chinese border is less than 200 kilometers away. Massive trucks laden with wood and industrial goods clog the road, transporting cargo from the ships inland. Up on the bridge, some Vietnamese tourists stop their cars illegally on the side of the road to pose for selfies. The backdrop is impressive: a sweeping view of the large container ships and vast bay.
According to estimates by the Asian Development Bank, the Vietnamese economy is expected to grow by 6.7 percent this year after 6.8 percent last year, with unemployment remaining low at just over 2 percent.
"The investment climate is good," Marco Walde from the German Chambers of Industry and Commerce in Vietnam told DW. "As a foreigner, you can start a company here and retain 100 percent ownership. A joint venture is not necessary."
Vietnam's communist government is betting on the free market, without state intervention in private business. But Vietnam's state-owned enterprises are still favored. They get easier access to loans and only face limited competition. But their machinery and management structures are often outdated. That's an area where Walde sees a significant need to modernize.
Marko Walde, managing director of the German Chambers of Industry and Commerce in VietnamImage: AHK Vietnam
Don't only bet on China
Nonetheless, investments in Vietnam are being seen as an attractive complement to those made in China. Companies and the Vietnamese government broached the "China plus 1" formula some time ago. It's the idea that investors shouldn't just bet on the Chinese market, but also invest in at least one other Asian country as a way to hedge possible risks.
An example of how big the risks can be is the impact of current US punitive tariffs on Chinese products. With its almost 94 million people, Vietnam is a big market and the population is young — the average age is just 29.
And there is a great pent-up demand. On the 120-kilometer drive from the capital, Hanoi, to the port city of Haiphong, one construction site follows the next. Luxury housing complexes for the growing middle class are going up and in the process anything old gets torn down without mercy.
Big posters advertise swimming pools and green spaces. Some of the new housing complexes are protected by private security services. Anyone who wants to get through the gate, needs to show ID. Developers call this the "Premium Living" model.
Now there are even plans to build a Vietnamese car. The private company Vinfast is building its own production facilities on 335 hectares (872 acres) in Haiphong's Dinh Vu-Cat Hai Economic Zone.
Within just one year, huge production halls have sprung up on the once muddy grounds. Excavators and heavy trucks tirelessly move rubble and construction materials. A beautiful green space already adorns the entrance area, while hundreds of engineers are busy at work in the research and development center.
Vinfast is a subsidiary of the real estate and industrial conglomerate Vingroup. In late 2018, the company wants to launch the first electric scooter that is "Made in Vietnam." After that, they plan to build an SUV and develop their own electric car.
"Even now, this project is a magnet," says Vo Quang Hue, deputy CEO of Vingroup. He worked for German companies in the automotive industry for almost 30 years and later for Bosch. Now those connections are coming in handy.
Since September 2017, Vinfast has had cooperation and supply agreements with BMW, Bosch, Siemens and ZF Friedrichshafen, among others. Vo is particularly proud of the company's own training center, which was founded in cooperation with the German Chambers of Industry and Commerce.
The plan now is to train 200 mechatronic engineers and industrial mechanics per year. More than 4,000 applicants competed for the first of those apprenticeship positions.
ASEAN countries at a glance
Five decades ago, ASEAN came to life, bringing together an array of ethnic, religious and linguistic groups. The bloc now has over 600 million inhabitants. Here's a look at the various member countries.
Image: picture-alliance/dpa/A. Rahim
Symbolizing unity
The Association of Southeast Asian Nations (ASEAN) celebrated its 50th anniversary last year. Since its founding, the bloc has emerged as a beacon of unity in Southeast Asia, although it has often struggled to find consensus among members over key policy issues affecting the region's politics, security and the economy, among other things.
Image: Reuters/E. de Castro
Brunei
The Sultanate of Brunei, located on the north coast of the island of Borneo, is one of the richest nations in the world. The small, oil-rich country is governed by its sultan as an absolute Muslim monarchy. Islam is the official religion in Brunei, with Sunni Muslims making up about 70 percent of the population. The sultan also sees himself as the main custodian of religious beliefs in Brunei.
Image: Fotolia
Cambodia
Cambodia joined the ASEAN grouping in 1999, and during the past ten years, the Cambodian economy has grown by at least 7 percent year after year. That makes it one of the fastest growing economies in the world. But the unequal distribution of wealth and income is a problem, with many of the nation's around 16-million strong population stuck in abject poverty, especially in rural areas.
Image: Erik Jan Ouwerkerk
Indonesia
Indonesia plays a salient role in ASEAN due to its status as the bloc's most populous member state as well as the world's most populous Muslim nation, with over 250 million inhabitants. The ASEAN secretariat is also based in the country's capital, Jakarta. Indonesia, which comprises around 17,000 islands, is the world's largest archipelago nation and boasts Southeast Asia's biggest economy.
Image: A Brit and a Broad
Laos
Laos became a member of the ASEAN bloc in 1997. The country has a population of around 6.5 million. Around 80 percent of the inhabitants of the poor, landlocked and isolated communist country depend upon farming for their livelihood. That's how they subsist and feed their families. Laos has an increasingly close relationship with China.
Image: Imago/J. Langley
Malaysia
A founding member of ASEAN, Malaysia has the club's third-largest economy. Religion and politics are sensitive issues in Malaysian politics, with the deadly sectarian riots of 1969 often cited as the need to maintain ethnic harmony in the country. Over 60 percent of Malaysia's 30 million inhabitants are Muslim, with the rest adhering to Buddhism, Christianity, Hinduism, and other religions.
Image: Saeed Khan/AFP/Getty Images
Myanmar
Myanmar, which joined the club in 1997, was ruled for decades by a military junta that left it impoverished. The party of Aung San Suu Kyi, the nation's democracy icon, won the first fully free elections for generations, held in 2015. But authorities are struggling to tackle a powerful Buddhist nationalist movement that has grown in strength in recent years and favors the former military rulers.
Image: AFP/Getty Images
The Philippines
The Philippines, an archipelago nation consisting of thousands of islands, is one of the most disaster-prone areas in the world. The country has has a population of over 100 million, and one of the fastest expanding economies. But it has suffered major environmental degradation in recent years due to reasons such as mismanagement of resources, deforestation and high population growth.
Image: Imago/M. Runkel
Singapore
The wealthy city-state has been a member of ASEAN since the bloc's founding in 1967. The country has a thriving economy, which has grown at a rapid pace since independence, underpinned by its position as a global financial hub. Densely populated Singapore has a multi-racial citizenry as well as tough laws against protests and curbs on press freedom.
Image: picture-alliance/robertharding/A. Hall
Thailand
Thailand's politics have been characterized by a long series of coups, with the nation's military frequently ousting democratically elected governments. The 2014 coup marked the 12th successful military takeover since Thailand embraced parliamentary democracy 85 years ago. The country boasts Southeast Asia's second-biggest economy and the reputation of being an attractive tourist destination.
Image: DW/S. Bandopadhyay
Vietnam
Vietnam has been ruled by a one-party communist state since the end of the Vietnam War in 1975. Since 1986, Vietnam has introduced sweeping market reforms to boost growth and development. But the ruling party doesn't permit criticism and the country is ranked among the worst for press freedom. Vietnam joined ASEAN in 1995.
