German businesses continue to express optimism about Vietnam as an investment destination, according to the “AHK World Business Outlook – Spring 2025” report by the Delegation of German Industry and Commerce in Vietnam (AHK Vietnam). This confidence persists despite global instability, with 54% of German companies in Vietnam forecasting improved business conditions in the coming year.
The report reveals a positive outlook among German firms operating in Vietnam, with 80% describing their current business conditions as “good” or “satisfactory.” This stability is further reflected in their future plans: 38% intend to increase investments, and 43% aim to expand their workforce in 2025. These figures highlight Vietnam’s appeal as a manufacturing hub and a strategic alternative for German businesses in the Indo-Pacific region.
The expansion of German companies in Vietnam over the past year underscores their commitment to the country. Notable examples include Ziehl-Abegg’s $20 million factory in Dong Nai province and Kärcher’s $19.4 million cleaning equipment plant in Quang Nam province. More recently, the Südwolle Group inaugurated a $21 million dyeing facility in Ninh Thuan province in April 2025.
Vietnam’s Ministry of Finance (MoF) data for the first quarter of this year further emphasizes the strength of German investment. Germany invested in seven new projects in Vietnam with a total registered capital of $11.35 million, an impressive 81.2% increase year-on-year. As of February 2025, Germany has a total of 490 valid projects in Vietnam, with a cumulative registered investment capital of $2.81 billion.
However, the report also identifies three key challenges faced by German companies in Vietnam. These include fluctuating demand, sudden shifts in economic policies and legal ambiguities, and unequal treatment in trade. Despite these challenges, Vietnam’s position as a neutral, ASEAN-based manufacturing hub, coupled with the EU-Vietnam Free Trade Agreement (EVFTA), presents a compelling opportunity for German businesses to strengthen their presence in the country.
Introducing the “Vietnam Pavilion – National Pavilion of Vietnam” on the Alibaba E-Commerce Platform
To support international businesses, especially European enterprises, in seeking product information, business partners, and market expansion in Vietnam, the Trade Promotion Agency – Ministry of Industry and Trade of Vietnam is pleased to introduce the “Vietnam National Pavilion – Vietnam Pavilion” on the Alibaba.com e-commerce platform.
Exporting to the EU: How to Ensure Your Goods Aren’t Recalled or Returned
A product recall from the EU market would be a significant blow to Vietnam’s export image. This scenario would require a widespread media announcement, further tarnishing the reputation of Vietnamese goods, which is already challenging to establish and maintain in the global market.
Why FDI Flows into Vietnam Slowed in 2024 and Which Sectors Benefited from a Trump Presidency?
Foreign direct investment (FDI) inflows into Vietnam slowed in 2024 but are expected to continue on an upward trajectory, even with the implementation of new US tax laws.
President Tô Lâm and French Counterpart Emmanuel Macron Hold Talks
“General Secretary and President To Lam and the French President agreed on significant directions and measures to enhance the Vietnam-France Comprehensive Strategic Partnership. Both leaders aim to deepen this strategic framework, ensuring practical and meaningful outcomes.”
Elevating Ties: Vietnam and France Upgrade Relations to Comprehensive Strategic Partnership
With this decision, France becomes the first country in the EU to establish a Comprehensive Strategic Partnership with Vietnam.
