​GBA 2024: A year of transformational growth, strategic investment for German-Vietnamese economic relations

​GBA 2024: A year of transformational growth, strategic investment for German-Vietnamese economic relations

The German Business Association (GBA) has had a landmark year in 2024, solidifying its role as a pivotal force in driving economic collaboration between Germany and Vietnam.

GBA Business Roundtable with German Ambassador Helga Margarete Barth in December 2024

With significant growth in membership, investments, and strategic partnerships, GBA has once again demonstrated its capacity to contribute meaningfully to the bilateral economic relationship.

As Vietnam continues to emerge as a leading hub for global investment, GBA plays a crucial role in facilitating German businesses’ successful entry into and expansion within the Vietnamese market, the association said in a press release on Wednesday.

Recently, GBA celebrated a major achievement by surpassing 400 corporate members, maintaining its status as the largest European business association in Vietnam.

This year’s achievements set the stage for an even more dynamic 2025, as GBA looks forward to celebrating 50 years of diplomatic relations between Germany and Vietnam, as well as its 30th anniversary.

Key achievements in 2024: Record-breaking growth, investment

The year 2024 has witnessed a surge in German investment in Vietnam. With over 530 German companies operating in the country, German businesses continue to trust Vietnam as a vital growth market, contributing a remarkable US$3.6 billion in investments.

These new investments span a range of industries, from manufacturing to high-tech solutions, logistics, and increasingly, renewable energy.

* Ziehl-Abegg, a global leader in ventilation technology, has launched a $20 million production facility in Dong Nai Province, southern Vietnam, which is set to play a crucial role in its global supply chain.

* Kärcher, known for its innovative cleaning solutions, has also established a significant presence in Vietnam with a new manufacturing plant in Quang Nam Province, located in the central region and valued at over VND500 billion ($19.7 million). This plant will help meet the growing demand for environmentally friendly products in the Asian market.

* Pearl Polyurethane Systems has inaugurated a new factory in Dong Nai’s Long Thanh District, contributing to the province’s impressive $1.2 billion in FDI recorded in just the first nine months of 2024.

* DIGI-TEXX Vietnam’s Hau Giang Operation Center, opened on August 1, 2024, would hire over 900 local workers, boosting the Mekong Delta’s economic transformation.

The latest German factory Pearl Polyurethane Systems in Long Thanh District, Dong Nai Province, southern Vietnam

The steady rise in German investment highlights Vietnam's growing appeal as a prime investment destination, thanks to its strategic location, dynamic workforce, and government efforts to enhance infrastructure.

German businesses are venturing beyond traditional sectors, with a strong focus on green energy and sustainable manufacturing, which aligns seamlessly with Germany's technological expertise and Vietnam's commitment to long-term environmental sustainability.

Record-breaking events, networking opportunities

GBA has significantly expanded its event offerings in 2024, organizing 90+ events that attracted over 25,000 participants. These events have not only enhanced business opportunities but also strengthened the German business community’s connection with local and international stakeholders.

* Oktoberfest 2024: Held in three cities Ho Chi Minh City, Hanoi, and Da Nang, the GBA Oktoberfest attracted over 10,500 attendees and has become one of the most important social events for German expatriates and local businesses in Vietnam.

* The GBA Business Awards: For the first time, GBA hosted the German Business Awards, recognizing outstanding companies such as Bosch Vietnam for innovation in industrial technology and Nestlé Vietnam for its contributions to sustainability. The awards highlighted the success and excellence of German businesses in Vietnam, reinforcing the importance of German industry in the region.

* Green FDI Forum: Reflecting the growing commitment to sustainable development, the Vietnam-Germany Business Forum in March 2024 discussed strategies for green growth and spotlighted the opportunities for renewable energy investments, specifically focusing on solar, wind, and biomass projects.

* High-level Meetings: Foreign investors are increasingly targeting southern Vietnam. GBA has facilitated dialogues between German businesses and local officials in Binh Duong and Dong Nai Provinces to tackle regulatory issues and boost transparency, making the region a top choice for high-quality investments and supporting Vietnam’s economic resilience.

* Business Roundtable with German Ambassador Helga Margarete Barth: In early December 2024, the association hosted this vibrant event in Ho Chi Minh City, strengthening ties with the German Embassy. It provided a valuable platform for German investors to address critical topics like investment diversification, workforce development, and administrative reforms. Ambassador Barth reaffirmed her strong support for German enterprises, while GBA chairman Alexander Ziehe expressed gratitude for her contributions, commending the event’s engaging and productive discussions.

These events demonstrate GBA’s role in fostering a collaborative business environment, promoting German-Vietnamese relations, and supporting the growth of green technologies in line with both countries' future objectives.

Challenges, future goals: GBA’s vision for 2025 and beyond

While 2024 has been a year of tremendous progress, GBA continues to recognize the challenges that must be overcome to ensure sustained growth. These challenges include navigating regulatory complexities, infrastructure bottlenecks, policy transparency, the non-issuing of licenses, and difficulties with TRCs for foreign experts.

In 2024, GBA has actively worked with local authorities to address these concerns and create a more conducive environment for foreign investors.

* Policy reforms: GBA has urged for streamlined administrative processes and better communication around policy changes to avoid disruptions in business operations. The aim is to simplify investment licensing, customs procedures, and visa regulations, all of which impact foreign companies seeking to expand operations in Vietnam.

* Infrastructure improvements: GBA continues to advocate for the expansion of smart cities and eco-friendly industrial parks. With the growing demand for sustainable infrastructure, GBA is working closely with local authorities to modernize urban infrastructure and increase the capacity of transport and logistics networks.

GBA’s long-term commitment to Vietnam’s economic growth

As Vietnam moves forward into 2025, GBA will continue to prioritize sustainable investments, focusing on industries such as renewable energy, digital transformation, and high-tech manufacturing.

The upcoming 50th anniversary of diplomatic relations between Vietnam and Germany and GBA’s 30th anniversary in 2025 will mark a pivotal moment in strengthening the economic partnership.

* Qualitative growth: The next phase of GBA’s strategy emphasizes fostering innovation, sustainability, and competitiveness. By encouraging FDI in areas like renewable energy or advanced manufacturing, GBA aims to be a key partner in Vietnam’s journey toward its next stage of development.

* Digital transformation: With Germany’s expertise in Industry 4.0, GBA plans to support Vietnam’s digital economy by bringing in more high-tech investments in automation, AI, and big data.

* Workforce development: As part of its long-term strategy, GBA will also expand vocational training initiatives, particularly dual vocational education programs modeled after Germany's successful training system. This effort will equip the Vietnamese workforce with the skills needed to thrive in the future economy.

A strong vision for the future: Alexander Ziehe’s commitment to excellence

Alexander Ziehe, chairman of GBA, shared his outlook for the future: “The year 2024 has shown the strength of our collective commitment to Germany-Vietnam relations. We are not just participants in Vietnam’s growth, but active partners in shaping its future. Our vision for 2025 is not just about celebrating milestones but accelerating our efforts in creating a sustainable, innovative, and resilient economy. The future is bright, and we are here to make a long-lasting impact”.

“Germany and Vietnam share a deep connection, built on trust, shared goals, and mutual respect. Together, we will continue to push the boundaries of what is possible. The next few years will see GBA furthering its mission to create meaningful partnerships and help Vietnam and Germany achieve shared prosperity. Our commitment to green energy, digital transformation, and workforce development will drive Vietnam’s growth and support both countries in achieving their economic aspirations”.

As GBA enters its 30th anniversary year, it remains committed to fostering stronger economic relations between Germany and Vietnam.

The next 30 years holds immense potential, with increased collaboration across sectors that will ensure a prosperous future for both nations.

Together, Vietnam and Germany will lead the charge toward a sustainable, innovative, and interconnected global economy.

Tuoi Tre News