Around 500 German companies are actively operating in Vietnam

DNHN - Furthermore, the concept of industrial diversification is given priority by 42% of German firms operating in Vietnam. A strategy of increasing sales and marketing is employed by 41% of respondents; services make up 35% and logistics 31%.

There are currently about 500 German businesses actively working in Vietnam or collaborating in business with Vietnamese enterprises, according to a recent statement from the German Business Association in Vietnam. 91% of German businesses intend to boost their investment in Vietnam, according to the "AHK World Business Outlook - Autumn 2023" poll, which was carried out by the German Chamber of Industry and Commerce in Vietnam (AHK Vietnam). This is an increase from 2021.

Additionally, 42% of German businesses in Vietnam place a high priority on production diversification plans. 41% of respondents have a plan to increase sales and marketing; services make up 35%, and logistics make up 31%. This indicates a well-rounded approach to business development. Furthermore, roughly half of the enterprises questioned acknowledged that the Vietnamese market's development potential was a significant consideration when thinking about expanding their investments.

In actuality, Germany launched 28 new FDI projects in Vietnam in the first 11 months of this year. With nearly 410% more value recorded than during the same period last year, the total registered value was US$342 million. According to GBA estimates, there were 459 German foreign direct investments (FDI) valued at US$2.5 billion in Vietnam as of October.

The presence and rising investment, according to GBA Co-Chairs Elmar Dutt and Torben Minko, not only shows German companies' confidence in the Vietnamese market but also indicates that Vietnam is viewed as a potential location for those looking to expand their business in Asia.

Simultaneously, the GBA Chairman underscored that the organisation is dedicated to collaborating closely with the Vietnamese government to foster a beneficial and transparent business environment, particularly concerning legislation, taxes, labour, and intellectual property rights.

"After the EU-Vietnam Free Trade Agreement and the EU-Vietnam Investment Protection Agreement in 2020, it is essential to share with German companies and potential investors the opportunities and challenges of doing business in Vietnam".

"Therefore, we will continue to provide important guidelines for businesses, in parallel with promoting German business culture and values in Vietnam, as well as supporting social responsibility and sustainable development", stated Elmar Dutt and Torben Minko.

According to the association, in 2024, the industries that stand to benefit greatly from German investment are food and agriculture; digitalization and creative technical solutions in the manufacturing, logistics, education, and healthcare sectors; and renewable energy, particularly solar and wind power.

One of the biggest and oldest international business associations in Vietnam is the GBA. There are presently 375 member companies and 15 partner companies in the association.

Trang Anh