A more cooperative funding framework

Helga Margarete Barth, German Ambassador to Vietnam

For German enterprises already operating in Vietnam, as well as those considering new investments, this development strengthens confidence in the long-term stability and depth of the bilateral and regional economic relationship. It reflects a shared commitment by both sides to deepen cooperation not only in trade but also in innovation, sustainability, digital transformation, and resilient supply chains.

From Germany’s perspective, the enhanced partnership builds on the solid foundation already established by the EU-Vietnam Free Trade Agreement, which has significantly improved market access and reduced tariffs on a wide range of goods. The comprehensive strategic partnership adds a broader political and strategic dimension to this cooperation.

For German companies, this means a more predictable and cooperative framework for investment, closer regulatory dialogue between the EU and Vietnam, and stronger institutional support for economic engagement. German firms value transparent rules, reliable institutions, and open markets.

At the same time, the strengthened EU-Vietnam relationship reinforces Vietnam’s role as a key partner for Europe in Southeast Asia. In an era when global supply chains are being diversified and have to be made more resilient, Vietnam’s growing integration into global trade networks presents new opportunities for German industry. Many German companies are increasingly considering Vietnam not only as a production base but also as an emerging consumer market with strong long-term growth potential.

Within Southeast Asia, Vietnam offers several competitive advantages that make it particularly attractive to German investors. One important factor is the country’s strong and consistent economic growth over the past decades. Vietnam has demonstrated remarkable resilience and has established itself as one of the most dynamic economies in the region.

Its young, skilled, and increasingly well-educated workforce is another key asset. Vietnam’s strategic geographic location also plays a significant role. In addition, Vietnam has shown a strong commitment to international economic integration and reform, which further enhances its attractiveness as an investment destination.

Several sectors stand out as particularly promising for Germany-Vietnam cooperation. Manufacturing remains a central pillar, especially in areas such as machinery, industrial equipment, automotive components, and advanced manufacturing technologies. German companies are globally recognised for their strengths in engineering, precision manufacturing, and industrial innovation, and these capabilities align well with Vietnam’s ambition to move up the value chain and develop higher-value industries.

Infrastructure development is another area with significant potential. Vietnam’s rapid economic growth requires continued investment in transport, logistics, urban infrastructure, and energy systems. German companies possess extensive experience in these fields and can contribute advanced technologies and high-quality solutions.

The healthcare and pharmaceutical sectors also offer promising opportunities for collaboration. As Vietnam’s middle class grows and demand for high-quality medical services increases, German expertise in medical technology, healthcare management, and pharmaceutical production can play an important role.

In recent years, Vietnam has made considerable progress in improving its regulatory and business environment. Reforms aimed at simplifying administrative procedures, enhancing transparency, and strengthening legal certainty have demonstrated initial results.

Efforts to digitalise government services and streamline licensing processes have started to contribute to a more efficient investment climate. For German businesses, strong protection of intellectual property and clear regulatory frameworks are essential factors when considering long-term investments, especially in technology-intensive sectors.

Nevertheless, there remains room for further progress. Continued efforts to reduce administrative complexity, improve the consistency of regulatory implementation across different provinces, and enhance legal predictability would further strengthen investor confidence. Greater transparency in regulatory processes and ongoing dialogue between authorities and the business community can also help ensure that reforms translate effectively into practice.

Sustainability and the green transition represent another key pillar of Germany-Vietnam cooperation. Both Germany and the European Union are committed to supporting global climate goals and promoting sustainable economic development. Vietnam has set ambitious targets for renewable energy expansion and climate mitigation, and these goals create numerous opportunities for cooperation.

Another important field is urban development. As Vietnamese cities continue to grow rapidly, there is increasing demand for solutions related to energy-efficient buildings, public transportation systems, waste management, and water treatment. German companies and research institutions can support the development of modern urban infrastructure.

Green manufacturing and circular economy approaches also offer strong potential for collaboration. German firms are global leaders in resource efficiency, recycling technologies, and environmentally friendly production methods. Partnerships in these areas can help Vietnam strengthen its industrial competitiveness while simultaneously reducing environmental impacts.

Finally, cooperation in vocational training and skills development will remain essential for supporting the green and digital transformation. Germany’s dual vocational training system has already inspired several successful initiatives in Vietnam, and further collaboration can help equip the workforce with the skills needed for emerging green industries.

Overall, the deepening of EU-Vietnam relations, combined with Vietnam’s ongoing economic reforms and strong commitment to sustainable development, creates a highly promising framework for expanding Germany-Vietnam economic cooperation in the years ahead.

German companies are ready to contribute their technological expertise, innovative capacity, and long-term investment perspective to support Vietnam’s continued development as a dynamic economy.