Việt Nam, Germany complement each other in economic co-operation

Việt Nam, Germany complement each other in economic co-operation

Bilateral trade reached 18.8 billion EUR last year, making Việt Nam Germany’s most important trading partner in the Association of Southeast Asian Nations (ASEAN) and its sixth-largest partner in Asia.

Daniel Müller, a representative of the German Asia-Pacific Business Association (OAV) — VNA/VNS Photo

Daniel Müller, a representative of the German Asia-Pacific Business Association (OAV), has described Việt Nam and Germany – the European Union’s largest economy – as ideal and complementary partners in trade and investment. 

Assessing bilateral economic and investment relations, Müller, who is an OAV representative at the Asia-Pacific Committee of German Business (APA), noted that ties have expanded and deepened considerably in recent years. He said German businesses have recognised Việt Nam’s strong growth momentum and high economic targets, and are eager to engage in this upward trajectory. 

Bilateral trade reached 18.8 billion EUR last year, making Việt Nam Germany’s most important trading partner in the Association of Southeast Asian Nations (ASEAN) and its sixth-largest partner in Asia. Notably, Việt Nam’s exports to Germany rose more sharply than German exports to Việt Nam, which Müller considered an early outcome of supply chain diversification. 

Investment has also continued to rise, driven by the expansion of German firms in Asia to serve both Việt Nam’s dynamic domestic market and neighbouring growing markets. The expert stressed that the imminent ratification of the EU – Việt Nam Investment Protection Agreement (EVIPA) could provide fresh impetus by enhancing legal certainty for investors. Joint efforts by the two governments to strengthen political cooperation are also creating a more favourable environment for economic relations. 

He highlighted Việt Nam’s efforts to improve its business and investment climate, noting that compared with many Asian markets, Việt Nam offers flexibility, reliability and political stability – the qualities highly valued by German enterprises. 

However, challenges remain, including lengthy licensing procedures, a complex and at times opaque legal system, corruption, infrastructure limitations, shortages of skilled labourers, and the need to meet higher sustainability standards in supply chains. 

Against the backdrop of global economic uncertainties, Müller underlined that both governments and businesses have a shared interest in intensifying bilateral cooperation to foster stability and predictability. He expressed his confidence that German investment in Việt Nam will continue to increase, and as Việt Nam advances up the economic value chain, opportunities will emerge for more high-tech cooperation and even reverse investment flows from Vietnamese companies to Germany. 

According to the expert, Việt Nam presents strong opportunities for OAV members in sectors such as manufacturing (particularly automation), infrastructure and transport, renewable energy, supply operations, healthcare, human resource development, agriculture and food processing. 

To further attract German and European investors, he recommended the Southeast Asian nation to continue to professionalise its macroeconomic framework, upgrade infrastructure and logistics networks beyond Hà Nội and HCM City, and develop a workforce capable of meeting higher value-added requirements. 

Administrative reform is another priority, with the creation of a consistent, transparent regulatory environment and the comprehensive digitalisation of licensing processes seen as particularly pressing. He also suggested Việt Nam consider opening additional sectors, including strategic ones, to foreign investment. 

Overall, Müller concluded, Việt Nam should gradually increase the domestic value-added share in its economy. This would both maximise domestic development potential and reduce exposure to increasingly unpredictable global trade amid rising geopolitical tensions. In this process, German enterprises can remain reliable and sustainable partners for Việt Nam. 

Bizhub