Asia-Pacific Conference of German Business

The motto we have chosen for this year's conference is Understanding Trends and Perspectives in the Asia-Pacific Region. We want to understand the main issues affecting the region and discuss them with our Asian partners. These include, for example, openness to foreign investment, the financing of expanding business models, opportunities in the health sector, and “Industry 4.0”, which is no longer a purely German topic: the digitization of industry is an issue that concerns companies all over the world. At this conference we will also talk about the lack of qualified personnel for key economic sectors, which is increasingly confronting German companies in Asia, and an assessment of foreign- and security-policy issues.

 

The APK has never restricted itself to a single country or region in Asia. It has always been about cooperation between Germany and the entire Asia-Pacific region. But it is fitting that the APK 2014 is taking place in Vietnam at a time when the ASEAN region is developing into a more integrated economic bloc and the ASEAN Economic Community is to be launched at the end of 2015. With over 620 million people, the ASEAN group has the third-largest population in the world; its overall economic capacity is worth approx. €1.87 trillion, putting it in seventh place worldwide. Several ASEAN countries have been among the fastest-growing economies over the last few years. 

 

Of course, we will also have to talk about the need for reforms in education and investment here. After all, it is above all the young population that makes the region attractive and holds such great potential for development.

 

Our aim is to conclude a free-trade agreement with the ASEAN group as a whole, because this would overcome many trade barriers and support economic exchange between the two regions. However, the inequalities between the ASEAN states make it difficult at times to reach agreements which, on the hand, must not overtax the weaker ASEAN members, or, on the other, lack ambition from the point of view of the EU states. Against this background the European Commission has changed its policy: it is now first seeking to sign agreements with individual ASEAN countries and then, in the long term, to transfer them into a single, comprehensive agreement between the EU and ASEAN. The treaty with Singapore has already been signed and proves that it is possible to achieve full market opening between the EU and an ASEAN country. The bilateral agreements will certainly help intensify economic relations.

 

Many ASEAN countries are very much in need of modernization, for example in their transport infrastructure and urban utility systems; some also need more efficient production and manufacturing plants. Further important concerns in the region include alternative energy sources and the need to improve energy efficiency. German companies have a great deal to offer in these fields and can participate in meeting these needs. However, we should not overlook the fact that many East Asian companies are in the process of systematically opening up the ASEAN region for themselves. So there is no time to lose. Anyone who is not at home in Asia in the future will be insignificant by international comparison. This means there is a clear task that can only be achieved by policy-makers and businesspeople working together: to make use of the growth in Asia without weakening Germany as a location for business.

 

Economic relations between Germany and the individual ASEAN countries vary a great deal. In terms of trade volumes, Singapore and Malaysia are still at the top. Here, cooperation has increasingly shifted to special and high-tech sectors. Economic relations with Thailand are traditionally also close, especially in industrial manufacturing. The attractiveness of Thailand as a location will depend, of course, on the country's political development. There is also great interest in Indonesia, the biggest country in the ASEAN group. Here it is above all the lucrative consumer market that is attractive. However, Indonesia's economic development will also depend on the political direction that the country pursues. Elections were held this year, so Indonesia now has a new president. We shall have to wait and see to what extent reforms will be carried out. The Philippines are also a potential economic partner. Many German companies are now outsourcing their IT business processes there. The Philippine government is actively canvassing for investors here, as is Myanmar, although German companies are still a little cautious in the way they view this market. German companies can gain from analysing the full range of the versatile ASEAN region, e.g. to discover suitable locations and areas of activity. It is important in this context to also take smaller countries with potential for development into account – like Brunei, Cambodia and Laos – because they can offer opportunities for new lines of business. 

 

Germany is by far Vietnam's most important trading partner in Europe. There is considerable demand for more sophisticated German-made manufacturing plant. In addition, there are long-standing, close links between Vietnam and Germany, including family ties, some of which are the result of immigration. Vietnam has good chances of becoming a remarkable industrial country. German technology and German know-how can provide a positive stimulus here. Ongoing projects include the German-Vietnamese University and a German consortium's project to build an underground railway in Ho Chi Minh City. The forthcoming conclusion of an EU-Vietnam tree-trade agreement could have a further positive impact on the exchange of goods and services. 

 

The APA sees itself as a platform for the interests of the entire German economy in Asia. The APA is a broker, translator, supporter and adviser. We try to live up to this ambition by representing the interests of small, medium-sized and large companies. Small and medium-sized enterprises in particular often need particular support. We therefore try to also to raise awareness among our Asian partners for the specific needs of small and medium-sized enterprises. At the same time, it is also important for the APA to serve as a voice for our Asian partners. We feel that helping German companies to put down roots in Asia should not be a one-way street. It is in our interests that Asian companies also get to feel at home in our country. This is why the APA supports a welcoming culture in Germany and advocates the easing of restrictions on visas and work permits. We promote the idea of opening Germany up to investment from all over Asia and would like to see better networking between the companies from Asia that have settled in Germany and domestic businesses. Companies that create value, whether in Germany or Asia, have earned the same freedom – irrespective of where their parent company's head office is located. In this respect, German business not only contributes to the sustainable development of the economies in Asia, it also benefits from it. Important goals of my work as APA Chairman are therefore the promotion of partnership, equality and sustainable development in and with Asia.