AHK - the service
Editorial information
Publisher: DIHK | Association of German Chambers of Industry and Commerce
Breite Strasse 29 | 10178 Berlin, Germany
Tel. +49 30 20308 - ***
Fax +49 30 20308 - ***
Email: infocenter**[ta]**lin.dihk.de
Internet: www.**k.de
www.DEinternational.de
www.dihk.de
The German Chamber Network well connected worldwidewell connected worldwide About the German Chambers of Commerce at 120 Locations in 80 Countries The German Chamber Network2 German companies which wish to establish and develop their business in other countries need information, advice, support and a network of contacts for all the matters that need to be addressed. This is a service provided by AHK - The German Chamber Network all over the world. The members of the German Chamber Network, the AHKs, also provide services to foreign enterprises who are seeking to establish or strengthen their business relations with Germany.
AHK - the service In this era of globalization, the AHKs perform services in two major ways; in the support and promotion of bilateral business relations and in the promotion of Germany as a location for trade and industry.
The AHKs support German and foreign businesses in their activities abroad and in Germany.
The AHKs provide specifc services for companies. They act as independent consultants and make full use of their knowledge and experience to the beneft of their clients.
The AHKs are bridges between cultures. They are not only familiar with German culture but also with the language and mentality of their host countries. Worldwide they have 40,000 member companies which provide a closely linked network and active support.
AHK - the offer
AHKs represent the frst point of contact in their respective locations for all companies that want to establish and expand bilateral business activities from or with Germany.
AHKs provide collective platforms for all German organizations located in the respective countries abroad and involved in the support of foreign business relations and the promotion of Germany as an investment location. Acting as bilateral business advocates in their respective host countries, the AHKs represent German commerce as a whole in a uniform way, fully using the resulting synergistic potential for optimum support of their client companies.
AHK - First Port of Call all over the World
AHKs are located in all countries which are of strategic importance to the German economy and where a particularly high level of business activity on the part of German companies is present.
AHKs offer services which provide specifc assistance and support to German and foreign companies. There are three different forms and names of
AHKs according to the legal regulations and economic circumstances prevailing in the host country: Bilateral Chambers of Industry and Commerce Delegations of German Industry and Commerce, Representations of German Industry and Commerce. The bilateral Chambers of Industry and Commerce are independent institutions funded and administered by the member companies located in the host countries and/or in Germany. Delegations and Representations of German Industry and Commerce represent the initial stage for establishing further bilateral chambers. They are located in countries where it has not yet been possible to establish a bilateral chamber, or where it is currently being prepared.
AHK - 120 Locations in 80 Countries International trade and investment relations abroad are of major economic signifcance for Germany. Germany’s economic interests are represented by AHKs at 120 locations in 80 countries on all fve continents. The AHK network is deeply involved in the rapid development of today’s global markets both in terms of quantity and quality, in the interest and at the service of German business enterprises.4 Algeria Argentina Australia Austria | Belarus Belgium Bolivia Bosnia and Herzegovina Brazil Bulgaria | Canada Chile China Colombia Costa Rica Croatia Czech Republic | Dominican Republic Denmark | Ecuador Egypt El Salvador Estonia | Finland France | Greece Great Britain Guatemala | Hungary Honduras Hong Kong | India Indonesia Iran Ireland Iceland Israel Italy | Japan | Kazakhstan Korea | Latvia Lithuania Luxemburg | Macedonia Malaysia Mexico Morocco | New Zealand Netherlands Nicaragua Nigeria Norway | Panama Paraguay Peru Philippines
AHK - well connected worldwide5 Poland Portugal | Romania Russia | Saudi Arabia Serbia Singapore Slovenia Slovakia South Africa Spain Sweden Switzerland | Taiwan Thailand Tunisia Turkey | Ukraine UAE USA | Venezuela Vietnam www.**k.de www.ahk.de/en6 Companies want to be successful in doing business abroad. They have to be aware of the conditions in the respective countries and use this knowledge to their advantage. Especially before getting involved in international commercial activities, specifc answers to critical questions and practical solutions for potential problems are needed.
AHK - Service Provider to Companies Examples of some questions asked by companies: How can we best fnd a distribution partner in France? Which is the most suitable trade fair in Germany for us to present our products? Who can represent us in a legal dispute in Hong Kong if we have problems with our authorized agent? Who can advise us on a tax representative in Norway? Can we, as a small business, take part in export promotion schemes and if so, how? What customs duties and import regulations must be observed when exporting our products to Brazil? How can we present our company systematically on the German market? Who can assist us in fnding a sales representative in Japan and who can inform us about income tax laws there? What are the market conditions for the introduction of our products in South East Europe?
AHKs can provide specifc answers and practical solutions to these and many more questions. They assist companies through a number of services developed around such questions.7 Algeria: A future market thanks to its natural resources One of the younger AHKs is in Algeria. In October 2005 the founding members of the “Association for the Promotion of German-Algerian Business Relations” unanimously decided to found an AHK. The Association which was only formed in February 2005, thus created one of the fastest established AHKs in the history of foreign trade promotion. The primary reason for this step was the extremely positive development of the economic relations between Germany and Algeria. In addition, in 2004 the Algerian government had already set up an economic development scheme which was then increased to a volume of 144 billion US dollars. The currency reserves of this country are estimated at around 110 billion US dollars. In view of the country’s abundance of raw materials, this country is also an interesting market for German companies in the medium term. The AHK Algeria provides support for market entry in a complex environment. Baltic States: Estonia, Latvia, Lithuania - attractive locations in Europe’s Baltic growth region Having gained independence, Estonia, Latvia and Lithuania are experiencing a dynamic development process, rapidly catching up in the increasingly global world. The liberal economic policies introduced in all three countries at the beginning of the 1990s resolutely continue. The tax systems too, are designed to encourage business enterprise. A further major factor, of course, is also their strategic geo-political location in North East Europe which makes these countries an important hub, linking goods and people to other eastern economies. Companies receive the support of ***
AHK Baltic States, which has had regional representative offces since 1993 located in Tallinn, Riga and Vilnius. The staff of 27 employees make it easier for companies to take the frst steps into these markets. The coordinated services of the three offces guarantee effcient representation of the business interests of German undertakings throughout the Baltic States.
AHK - competent worldwide on site
AHKs provide specifc answers and practical solutions for companies. AHKs are located in all the markets of particular interest for German business. AHKs are also present in the countries of prospective economic growth, where German companies need assistance, particularly in the case of new market entry. Here's a selection:8 Colombia: A country much better than its reputation The experience of international investors in Colombia is much more positive than the often critical observations made about this country on the international stage. Over the last few years the economy has grown by an average of 5% to 6%. During the last decade, more than 25 billion US dollars have flowed into the country - 6 billion in 2006 alone. Colombia is a member of the Andes Community and is making every effort at integration in the global economy. In February 2006 the government signed a Free Trade Agreement with the USA. In September 2007, the frst round of negotiations took place between the countries of the Andes Community and the European Union about an association agreement including a free trade agreement. For more than 70 years the AHK Colombia, with its head offce in Bogotá and an offce in Medellin has been a contact partner for German and Colombian businesses. Slovakia: A promising market at the heart of Europe The AHK Slovakia was opened in November 2005 in Bratislava with the participation of the Federal German President Horst Koehler. Only a short time after its founding, the
AHK already had 120 member companies. Slovakia is considered as one of the new markets in the Central Eastern Europe region with considerable growth potential. In Germany, this country is increasingly taken more seriously as an interesting business location and trading partner. In automobile manufacturing Slovakia has a good chance of soon becoming the number one, per capita of population. Some of the prime benefts of this location include moderate wage levels, simple taxation laws, flexible labour laws and a motivated and qualifed work force. The AHK Slovakia provides its services not only to German companies wishing to enter the market but also to Slovakian companies which wish to do business in Germany.9 Southern Africa: Growth factor Football World Cup 2010 For six years South Africa has enjoyed a period of stable economic growth. The Football World Cup in 2010 is one of the factors which will ensure that this trend continues. Since 2001, thanks to a black middle class which is becoming increasingly stronger, consumer goods contribute a further signifcant growth factor. Massive state investment in connection with the World Cup 2010 have flowed freely not only into the building and renovating of stadiums but also and especially into improvements to the infrastructure. Germany is South Africa’s most important trading partner.
The AHK Southern Africa with its 650 member companies is the largest bilateral chamber of foreign trade in South Africa. It supports German companies in entering a market of the future, one of the markets with the greatest potential on the African continent. Vietnam: A country awakes Since the APEC summit took place in Hanoi in November 2006 and since its entry to the World Trade Organization in January 2007, Vietnam is happy to be one of the “Tiger States” of Asia. Among the major success factors for the increasing attractiveness of Vietnam are the stable political environment, the young, ambitious population thirsting for knowledge and its central location in South East Asia. The AHK Vietnam has had a location in Hanoi since 1993 and also since 2005 in Ho Chi Minh City (Saigon) offering a broad range of services. As well as providing up-to-date information, the AHK is also involved in German-Vietnamese joint cooperative projects. In addition, it compiles location analyses, market information and has trade fair services available for German companies. Delegierter der Deutschen Wirtschaft in Vietnam Delegate of German Industry and Commerce in Vietnam10 Bremen Flensburg Kiel Lübeck Stade Bremerhaven Hamburg Emden Oldenburg Schwerin Rostock Neubrandenburg Lüneburg Hannover Braunschweig Bielefeld Osnabrück Münster Leipzig Dresden Chemnitz Gera Erfurt Suhl Halle Magdeburg Potsdam Berlin Frankfurt a.d. Oder Cottbus Coburg Arnsberg Kassel Fulda Gießen Detmold Hagen Düsseldorf Wuppertal Köln Aachen Bonn Krefeld Siegen Dillenburg Duisburg Essen Dortmund Bochum Koblenz Trier Saarbrücken Bayreuth Nürnberg Regensburg Passau Würzburg Aschaffenburg Augsburg Ulm Heidenheim Stuttgart Pforzheim Karlsruhe Heilbronn Reutlingen VillingenSchwenningen Freiburg i. Brsg. Konstanz Weingarten Mannheim Ludwigshafen Darmstadt Mainz Wiesbaden Offenbach Hanau Frankfurt am Main Limburg München Wetzlar Chambers of Industry and Commerce in Germany The IHKs are corporations under public law acting on their own authority. They are independent institutions, self administered by local businesses. IHKs represent the interests of all commercial and industrial undertakings in their region vis-à-vis local and state governments, policy-making institutions and the general public.
AHKs and IHKs work together in support of German companies in the development and expansion of their business relations in foreign countries. The AHKs worldwide are also closely linked with the 80 Chambers of Industry and Commerce (IHKs) in Germany. As the offcial representation of German industry in the respective locations, the AHKs are also the frst port of call and close cooperation partner for German business associations.
AHK - well connected in Germany Business Associations The close cooperation with German business associations also furthers the strong corporate and market links of the AHKs. The joint network represents the specifc business affairs of companies. In view of the increasing internationalization of the skilled crafts trades, the AHKs also work closely in cooperation and mutual trust with the Chambers of Skilled Crafts.11 Germany´s missions abroad, namely its embassies and consulates are important partners for the AHKs. They forward all the business enquiries they receive to the AHKs and are also kept informed of all important decisions taken by German companies in their region. In their feld of responsibility they concentrate primarily on political support for the interests of trade and industry, representing these to the government of the respective host country. As the offcial representatives of German industry, the AHKs have extremely good access to the decision-makers in business, politics and local governments in their host locations. They know the structures, the distribution of power and the decision making processes - both formally and informally. The AHKs are in a position to effectively represent the interests of bilateral business relations as well as are able to provide individual companies with specifc answers and practical solutions. Germany Trade and Invest* is the foreign trade and inward investment agency of the Federal Republic of Germany. Its mission is to promote Germany as a location for industrial and technological investments and to identify investors for the German market. The organization advises foreign companies that are interested in expanding their business activities in the German market and supports German companies looking to enter foreign markets, providing foreign trade information for both. Germany Trade & Invest has a global network of employees who perform on-site research into foreign markets and support foreign businesses looking to establish a company in Germany. Its international team of experts works closely together with the AHKs. This cooperation is being continuously expanded in order to be able to offer German exporters and potential foreign investors a central contact point for both information and targeted consultancy services, under the umbrella of the German Chamber Network. Traditionally the AHKs work in close cooperation with strong German partners in the promotion of overseas business. At their respective locations, AHKs are well connected with key players in business, politics and administration.
AHK - well connected worldwide * Formed following the merger of the German Offce for Foreign Trade and the Invest in Germany GmbH, Germany Trade & Invest offcially came into being on January 1, 2009.12 The AHKs offer their services to companies under the service brand DEinternational: The basic range of AHK services is the same all over the world. Specialized AHK services are consolidated, standardized and optimized. If required, the AHKs also offer their services to the customer in a shared network. The range of services promoting foreign trade is expanded and offered in cooperation with other partners. All of this leads to an even greater concentration on markets and customers, producing transparent results for clients, with especially small and medium sized German companies beneftting from the
AHKs worldwide network. Under the service brand DEinternational the
AHKs offer companies a harmonized portfolio of services, while taking each host country's specifcities into account.
AHKs serve as a bridge between Germany and the world. This also fnds expression in the logo of DEinternational with its intertwined letters. Germany in the world, the best connections, an extensive network, through the service brand of the AHKs. DEinternational is the service brand of the AHKs. DEinternational stands for the AHKs network spirit and action. To the beneft of the customers worldwide. DEinternational - the AHK Service Brand13 Basic services The basic services of the AHKs include market information, market entry support, address research, legal information, debt collection or arbitration services and sales tax refunds. These basic services are provided by the
AHKs all over the world uniformly and at a high quality standard. For the customer this means: Comparable results at a solid performance level. For example "Market Information": The customer who has to decide between different countries within a target region receives a full overview of the local conditions in these countries, made possible by the interaction and close collaboration of the service offers of all the AHKs represented at the various locations. The customer then has a decisive competitive advantage. For example "Sales Tax Refunds": The AHKs Belgium-Luxembourg, France, United Kingdom, Ireland, Poland, Portugal, Switzerland and Spain offer a central contact point for interested German companies for the refund of sales tax paid in other countries. The Cologne offce of the AHK Belgium-Luxembourg supplies initial information and undertakes the frst refund applications to the countries involved. These are then forwarded to the respective AHK for further processing. For example "Address Research": Upon request, the AHKs will carry out address research, in doing so checking existing customer databases or creating new ones. The AHKs are the frst port of call for initial information free of charge. The extensive range of services provided by the AHKs is divided into the basic services and specialized services. DEinternational - the Products14 Specialized Services Specialized services are provided as required according to the specifc prevailing conditions of the host country of an AHK and are tailored to the special needs of the companies. Specialized services will differ from country to country. Examples of the specialized services of various
AHKs are: advice on environmental matters, personnel management, business representations, location analyses, business delegations, trade fair services, etc. Specialized service “Business Representation”: The full representation of German companies has been developed in the USA and is now available at other locations. Specialized service “Business Delegation” It is often benefcial for companies that on one business tour the markets in neighbouring countries can also be visited in order to compare. The AHKs located in these countries work together hand in hand to make these comparative market tours a seamless experience. Specialized service “Trade Fair Service”: Under the brand name “fairs & more” many of the AHKs in Asia provide full trade fair service to customers from a single source. Customers receive comprehensive advice from the AHK support services in the preparation stages, during the trade fair and also assistance during the critical post event phase. AHKs work with competent partners in the feld of logistics, accommodation, travel, exhibition stand set-up and equipping - all to the beneft of the customer.
AHKs have all the advantages of a close network cooperation and pass these on to the customer. The special services introduced by one AHK are then at the disposal of other AHKs. Basic and specialized AHK services can be offered as joint services on demand. In such cases one
AHK contact person provides the interface to the other AHKs which then agree on a joint service placed at the customer’s disposal.
AHK in fgures: The German Chamber Network employ 1,600 people and provides useful services to companies for entry into and expansion of business relations. Annual statistics: 500,000 enquiries for specifc economic information are answered, 400,000 business contacts are set up, 500 company business trips are organized and managed, 50,000 business travellers from Germany are assisted, 20,000 specialists and managers are trained, 15,000 foreign exhibitors and 170,000 visitors are introduced to trade fairs in Germany and 230,000 m² trade fair space rented out, 3,300 company meetings, congresses and seminars attended by 165,000 people are organized, 80 AHK magazines in 20 different languages are published every year with a total circulation of 1.6 million copies. The AHKs provide services to German and foreign enterprises in all branches of trade and industry. There are a lot of network benefts behind the AHKs in terms of experience, know-how, resources, capacities and contacts. Companies proft from all of these.
