EKG report No. 355
Vietnam: New resolution improves market position of German exporters and strengthens their competitive position
At its September meeting, the Interministerial Committee for Export Credit Guarantees decided to further open up the cover policy for Vietnam. With immediate effect, transactions with a credit period of more than 360 days and an order value of up to five million euros can be covered on the basis of the buyer's creditworthiness if the buyer prepares its accounts in accordance with national accounting standards. This adjustment to the cover policy will be reviewed after six months.
Previously, bank guarantees were required for such transactions, which led to higher costs for the customer. All German export companies - especially small and medium-sized enterprises (SMEs) - will benefit from the adjustment that has now been decided.
Important contribution to diversification
Vietnam is an important sales market for German SMEs, especially as an alternative to China. In this respect, the now agreed cover facilitation helps German export companies to further diversify their sales markets.
Export financing conference in Ho Chi Minh City
Germany's commitment to Vietnam is multifaceted and will also be demonstrated at an export finance conference to be held in Ho Chi Minh City on September 30, 2024. Together with Atradius and SERV, Euler Hermes will present opportunities and prospects for this market.
First half of 2024: Almost eight billion euros in Export Credit Guarantees
In the first half of the year, the German Government issued Export Credit Guarantees (EKG) totaling 7.9 billion euros. This is around a quarter less than in the same period last year. At that time, the Federal Government had provided cover for several major projects. The compensation figures remain moderate. As at June 30, 2024, they amounted to 76.5 million euros (1st half of 2023: 58.6 million euros).
Three quarters green
Last year, the Federal Government's Climate Strategy provided the impetus for more Export Credit Guarantees for green business. This path was successfully pursued in the first six months of the year. Measured in terms of cover volume, the EKG share for green transactions in the individual cover segment was 74%.
