Building for the Long Term: German Expertise and Vietnamese Ambition

This article was featured in Vietnam Investment Review’s special magazine welcoming 2026. You are reading the full, updated version.

From Milestones to Measurable Impact

The year 2025 was rich in symbolism for Vietnam–Germany relations. Fifty years of diplomatic ties offered an opportunity to reflect on trust built over decades — in politics, business, and people-to-people exchange.

From our daily work with German enterprises on the ground, we see a strong alignment emerging between German expertise in quality, systems, and long-term industrial solutions and Vietnam’s ambition to modernize infrastructure, energy systems, and industry at speed and scale. This combination has the potential to create real, measurable impact — particularly in complex, high-stakes projects where excellence matters.

Vietnam’s recent and radical streamlining of administrative structures is widely recognized by the business community. Faster decision-making, clearer responsibilities, and a strong reform signal have already had a positive effect on investor confidence. At the same time, regulatory complexity and implementation gaps remain a challenge — especially for large infrastructure and technology projects that require predictability over decades, not months.

Against a backdrop of global supply chain realignment, energy transition, and geopolitical uncertainty, Vietnam’s strategic position in Southeast Asia and Germany’s industrial and technological strengths form a natural partnership. The task for 2026 is to translate this shared momentum into execution — with focus, reliability, and mutual commitment.

Events Highlighting Vietnam’s Economic Promise

In late 2025, Germany reaffirmed its growing economic interest in Vietnam through a series of high-level political and business engagements. Most notable was the strong alignment between both governments and the private sector on deepening cooperation in energy, infrastructure, skills development, and industrial modernization — areas where German companies are already actively investing and expanding their footprint.

This momentum was equally reflected in Germany. Throughout 2025, Vietnam featured prominently across a wide range of business forums, delegation programs, and market briefings organized by Germany’s nationwide chamber network and its international business platforms. From ASEAN-focused conferences to major Asia-Pacific business forums and regional industry events, Vietnam consistently stood out as one of the most attractive and most requested markets for German companies. Strong participation rates and sustained follow-up interest highlighted Vietnam’s growing strategic relevance in German corporate planning.

On the trade front, bilateral exchanges between Vietnam and Germany maintained a strong trajectory in 2025, with total trade reaching $20.17 billion in the first ten months — an 18.8% increase year-on-year. Notably, German exports to Vietnam surged by 22%, underlining robust Vietnamese demand for high-quality machinery, equipment, and industrial inputs. Meanwhile, Vietnamese exports to Germany rose by a moderate 3.6%, reflecting stable but less accelerated demand. These figures, sourced from the German Federal Statistical Office (Destatis), highlight a deepening trade relationship — increasingly driven by Germany’s role in supporting Vietnam’s industrial and infrastructure development.

Vietnam’s Economic Performance in 2025: Key Signals for German Investors

The 2025 data from the General Statistics Office of Vietnam (GSO) paints an encouraging picture for 2026:

• GDP growth reached 8.02%, up from 5.05% in 2024, signaling a strong post-pandemic rebound and reaffirming Vietnam’s macroeconomic stability.
• Foreign Direct Investment (FDI) inflows hit USD 38.42 billion, an increase of 0.5% compared to 2024, the highest level in Vietnam’s history.
• Total import–export turnover reached USD 930 billion, growing 18.2% year-on-year. Exports rose by 17%, and imports by 19.4%, showing strong demand for machinery and input goods, sectors where Germany plays a leading role.
• The unemployment rate dropped to 2.02%, while the average monthly income reached USD 320, up 8.9% from the previous year, both reflecting improving living standards and rising consumer power.
• Vietnam now has over 53.5 million employable people, offering a robust labor base that complements German firms’ workforce strategies.

These figures confirm that Vietnam is not only a manufacturing destination but also a growing consumer market and innovation partner, critical factors for German businesses diversifying supply chains or targeting Southeast Asia.

Business Sentiment and Shifting Priorities in 2026

German investment in Vietnam has steadily expanded over the past decades, with around 600 German companies investing and generating at least 50,000 jobs, primarily across manufacturing, services, and technology sectors. This long-term presence reflects Vietnam’s competitive labor force, expanding market, and liberalized investment climate — factors that continue to attract capital and expertise.

While manufacturing remains vital, German firms are also broadening their footprint into services, digital technologies, consulting, and logistics. This shift aligns with global trends where value creation increasingly intertwines physical production and digital transformation.

According to the AHK World Business Outlook – Fall 2025, 88% of German companies in Vietnam rate their current business situation as “good” or “satisfactory”, reflecting the resilience of German firms amid global disruptions and intensifying regional competition. Looking ahead to 2026, more than half of these companies plan to expand their investments, showing confidence in Vietnam’s continued role as a reliable production and market base. At the same time, nearly one-third of respondents expect their workforce to grow, while the majority anticipate maintaining current staffing levels. These cautiously optimistic projections underscore the country’s appeal as a strategic partner — backed by macroeconomic stability, growing industrial demand, and Vietnam’s integration into global value chains.

Green Energy and Infrastructure: Pillars of Future Growth

Renewable Energy

Germany’s late 2025 development pledge includes a focus on sustainable energy and enterprise investment, signaling priority alignment with Vietnam’s green transition. One standout collaboration is the Siemens Mobility–VinSpeed partnership signed in December 2025 to advance Vietnam’s high-speed rail infrastructure, covering key routes such as Hanoi–Quang Ninh and Ben Thanh–Can Gio with technology transfer, rolling stock, signaling systems, and maintenance frameworks.

Simultaneously, German involvement in renewable energy projects, such as PNE’s offshore wind initiatives in Gia Lai and broader provincial engagements, highlights a shared ambition to scale clean power generation across Vietnam.

German Technology in Infrastructure

The presence of German industrial leaders at gatherings like Vietnam Rail & Tech 2025 underscores growing interest in infrastructure, electrification, and digital mobility solutions. Beyond rail, German expertise is increasingly sought in hydrogen applications, smart grids, and the implementation of Vietnam’s revised Power Development Plan VIII — vital components of the country’s decarbonization pathway.

Workforce Development: Investment in Human Capital

Human capital emerges as a central pillar in bilateral cooperation. Dual vocational training partnerships between German companies and Vietnamese institutions are deepening, backed by fair migration initiatives coordinated by the Delegation of German Industry and Commerce in Vietnam (AHK Vietnam).

Noteworthy initiatives include a Vietnamese delegation to Germany in May 2026, focused on skills development partnerships, as well as Germany’s “Talents 2.0” delegation to Vietnam around September 2026 — both enhancing talent mobility and exchange. Early 2026 also sees the launch of a further training program aimed at upskilling workers in high-demand sectors such as digital services and leadership, or intercultural competencies.

These efforts resonate with broader demographic trends: Vietnam’s growing young workforce complements Germany’s aging labor pool, creating mutual incentives for cooperation in education, lifelong learning, and workforce readiness.

Sectoral Hotspots: Where Opportunities Are Growing

Vietnam’s economic geography continues to diversify. Ho Chi Minh City (including former Binh Duong) remains a central hub for sales, services, and innovation, while Dong Nai and Hanoi serve as anchors for manufacturing and R&D operations. Emerging investment corridors in central Vietnam, like Gia Lai and Danang (including former Quang Nam), have attracted firms like Kärcher, OBE, DRÄXLMAIER, and Leonhard Kurz, reflecting growing interest beyond traditional centers.

Sector priorities outlined at the Joint Economic Committee Meeting reflect the broadening engagement between German and Vietnamese partners: chemicals, green chemistry, digitalization, AI, cybersecurity, high-speed rail, and clean tech now stand as key domains for 2026 cooperation. These sectors leverage both countries’ strengths — Germany’s technological leadership and Vietnam’s dynamic market and workforce.

Conclusion: A Framework for Continued Collaboration

As Vietnam and Germany move into the next chapter of their economic partnership, the foundations are solid: trust built over 50 years, complementary strengths, and a shared interest in sustainable growth. German companies are not looking for short-term opportunities. They invest for the long run — in factories, infrastructure, skills, and local partnerships.

Vietnam’s ambition to modernize its economy, upgrade infrastructure, and lead the green transition in the region creates a strong demand for German quality, systems thinking, and operational excellence. At the same time, continued progress in administrative simplification, regulatory clarity, and coordination between policy and implementation will be decisive for maintaining momentum.

This is where the role of the AHK becomes particularly relevant. Positioned at the intersection of business practice and policy dialogue, AHK Vietnam supports companies in navigating complexity, aligning expectations, and turning strategic intent into concrete projects. Together with our partners in government, associations, and industry, we work to ensure that cooperation delivers not only growth but lasting value.

The future of economic relations between Vietnam and Germany will not be defined by ambition alone, nor by expertise in isolation — but by the ability to bring both together. German expertise and Vietnamese ambition can deliver — if we stay focused, pragmatic, and committed to execution.