German–Vietnamese Economic Relations: Strong Momentum, Clear Priorities

The German-Vietnamese economic relationship continues to deepen, driven by mutual interests, dynamic market conditions, and shared global challenges. This progress was reaffirmed during the recent meeting of the Joint Economic Committee (JEC) held in Hanoi on November 17, 2025, which brought together high-level representatives from the Federal Ministry for Economic Affairs and Energy (BMWE) and Vietnam's Ministry of Industry and Trade (MoIT).

AHK Vietnam, as a long-standing partner of the BMWE, actively participated in the delegation. Represented by Chief Representative Peter Kompalla, AHK Vietnam contributed practical insights, best-practice examples, and concrete recommendations to enhance bilateral cooperation.

A Strategic Partnership with Growing Significance

Germany is Vietnam's most important trading partner within the EU, and Vietnam is becoming an increasingly attractive destination for German investment and technological cooperation. With a population of over 100 million and a rapidly growing economy, Vietnam is a key player in the ASEAN region. German companies already benefit from positive experiences in the country, and the Federal Government is actively supporting further engagement through market diversification strategies, resource security, digital transformation, and industrial partnerships.

Three priority areas emerged from the JEC discussions, each critical for maintaining competitiveness and creating long-term opportunities for German businesses in Vietnam:

1. Speed and Scale for Infrastructure Projects

Vietnam is rapidly advancing major infrastructure initiatives, including urban transport systems and nationwide rail modernization. German companies offer internationally recognised expertise and solutions, particularly in railway technology and urban development.

The JEC highlighted two flagship projects as examples of this cooperation: Siemens and Gerkan, Marg and Partners are bidding for the construction of a high-speed railway between Hanoi and Ho Chi Minh City, and a German enterprise is advancing a tungsten mining project. For initiatives of this scale, timely political coordination, streamlined approvals, and efficient financing mechanisms will be key.

2. Green Industrial Partnerships

Germany's leadership in renewable energy, Industrie 4.0, and hydrogen technologies aligns closely with Vietnam's Net Zero targets and commitment to sustainable development. AHK Vietnam promotes scalable technology partnerships and dual training programs tailored for the green transformation of industry.

To unlock the full potential of climate-smart investments, the JEC emphasized the need for faster permitting processes and transparent tendering procedures. These steps are essential to accelerate the deployment of innovative and sustainable solutions.

3. Workforce and Skills for the Future

As German companies expand their footprint in Vietnam, investing in skills development is becoming increasingly strategic. The Bosch TGA model exemplifies successful dual vocational training adapted to local conditions.

AHK Vietnam proposed the establishment of a structured "German-Vietnamese Skills Partnership" to align vocational training and upskilling initiatives with the evolving needs of businesses. Such a partnership would ensure the availability of qualified personnel to support complex industrial projects and technological innovation.

Outlook

The Joint Economic Committee reaffirmed the shared commitment of Germany and Vietnam to build on their successful partnership. In a changing geopolitical and economic landscape, both countries see clear opportunities to deepen collaboration in strategic sectors such as infrastructure, energy, digitalisation, and resource security.

Vietnam continues to stand out as a dynamic and reliable partner for German businesses, offering access to a large consumer market, political stability, and growing demand for quality solutions. With strong institutional backing and active engagement through platforms like the JEC, German-Vietnamese economic relations are well-positioned for a future of sustained growth and mutual benefit.