Germany & Vietnam

Since the beginning of the 1990s, Germany supports the Vietnamese development and intend to continue working with Vietnam in the long-term. Germany is Vietnam’s most important trading partner in the EU for years. German products in Vietnam achieve a good reputation regarding the quality. The increasing middle class of Vietnam highly demands for products “made in Germany”, which is also a reason for German’s exporters to consider Vietnam as attractive destination. Particularly, German companies with Know-How engineering, in the environmental and climatic sector, but also in automotive and medical technology are potential partners in great demand in Vietnam. Currently, over 300 German firms interact on the Vietnamese market. Low wages, a rather young motivated population with the willingness to learn, as well as a relative stable policy transform Vietnam into an attractive investment location. The German business community in Vietnam is supported by the German Business Association (GBA).

Economic outlook and Trends

Also, the outlook for the coming years includes many opportunities: The free trade agreement with the EU that was concluded in 2016, promises further growth potential und a strengthening of the economic relationship between Germany and Vietnam. Although there are many active German operators on the Chinese market, we still experience a lively interest of many German firms in Southeast Asia that are looking for alternatives or expansion of their business in Asia. Due to a strong cultural connection of North Vietnam to China and the Southeast Asian mindset in the South, Vietnam has a real potential to create a bridge to Southeast Asia.

Aside from Singapore, Vietnam is the only country within ASEAN, that is part of all relevant free trade agreements within the region: the ASEAN Economic Community (AEC), the CPTPP, as well as a free trade agreement with the EU. Furthermore, Vietnam provides foreign companies the lowest market entry barriers.