Germany's Scholz visits Vietnam as manufacturers eye shift from China

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Germany's Scholz visits Vietnam as manufacturers eye shift from China
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German Chancellor Olaf Scholz discussed energy and trade ties with Vietnam's Prime Minister Pham Minh Chinh during a visit to Hanoi on Sunday, the first for a German leader in more than a decade.

Scholz's stop in Vietnam on his way to the G20 leaders' summit in Indonesia, highlights Vietnam's growing role in global supply chains as many German firms consider diversifying their manufacturing operations by expanding their presence beyond China, their main hub in Asia.

The Hanoi visit follows Scholz's trip to China last week, the first by a Western leader in three years since the start of the COVID-19 pandemic. He will next visit Singapore before heading to the G20 summit on Nov 15-16. Germany is Vietnam's second-largest trading partner among EU states after the Netherlands, with exchanges worth $7.8 billion last year, according to law firm Dezan Shira - far less however than the United States, China, Japan and South Korea.

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