Vietnam: An attractive investment destination for German businesses

According to a newly published report by the German Chamber of Industry and Commerce in Vietnam, the Vietnamese market is becoming an increasingly attractive investment destination for German businesses.

The report provides an overview of the current investment situation as well as the development of German enterprises' production activities in Vietnam. Accordingly, the key factors driving this trend include: a skilled workforce, an increasingly open investment environment, and a constantly expanding domestic market.

German investment activities in Vietnam have increased sharply since Vietnam joined the World Trade Organization (WTO) in 2007, and have become especially vibrant after the Enterprise Law and Investment Law were amended in 2015.

To date, there have been 576 German enterprises investing in Vietnam with a total adjusted capital of 3.7 billion USD, creating at least 50,000 jobs nationwide.

A dialogue between Vietnam and Germany on the development of an international financial center in Vietnam and strengthening bilateral economic cooperation took place in Frankfurt am Main on September 30. (Photo: Phuong Hoa/VNA)

Although Germany is globally renowned for its high-quality manufacturing industry, in Vietnam, the majority of investment flows are concentrated in the service sector. Nearly 50% of German projects are in the consulting, business process outsourcing (BPO), information technology outsourcing (ITO) and logistics sectors.

With bilateral trade reaching 16–18 billion USD per year, many German businesses are investing heavily in machinery, chemicals and food trade – sectors that benefit from Vietnam's strategic location and rapidly developing infrastructure.

Notably, the BPO/ITO sector continues to attract due to competitive labor costs and a high-quality engineering team. There are currently 71 German companies operating in this sector, focusing on software development and data processing.

Among them, Digi-Texx is the largest unit with more than 1,500 employees in Ho Chi Minh City, while Bosch currently has about 4,000 employees working in technology and engineering fields.

In the 2025-2026 period, bilateral investment relations between Germany and Vietnam are forecast to continue to expand, thanks to the positive impact of the Vietnam-EU Free Trade Agreement (EVFTA). This agreement is creating a solid legal foundation, helping German businesses enjoy tariff incentives, while expanding opportunities to export goods and services from Vietnam to the European market.

In addition, Vietnam's goal of achieving net zero emissions by 2050 also opens up great cooperation space for German businesses – which are at the forefront of renewable energy technology, improving efficiency and protecting the environment.

A young, dynamic workforce and policies encouraging cooperation in vocational education help Vietnam become a sustainable investment destination for German corporations in the long term. The participation of German enterprises also contributes to improving the quality of human resources through dual training models and knowledge transfer.

Germany is currently among the most active European investors in Vietnam, with a strong presence in both the service and manufacturing sectors. German companies bring not only capital, but also advanced technology, management experience and global standards, contributing to the modernization of the Vietnamese economy.

Source: https://thoidai.com.vn/viet-nam-diem-dau-tu-hap-dan-cua-doanh-nghiep-duc-216799.html