In its latest media update, the German Business Association (GBA) expressed confidence in the country's resilience and promising investment prospects.

“The continuous efforts to sustain operations, promote co-operation, and engage in sustainable development initiatives have affirmed Vietnam's position as a strategic investment destination. With a stable political environment, a rapidly developing economy, and reforms in investment policies, Vietnam continues to be the preferred choice for German companies in expanding and strengthening their presence in the Asian region,” the association stressed.

In a recent survey by AHK World Business Outlook Spring 2025, companies recognised both opportunities and risks in Vietnam, navigating local challenges while capitalising on the country's increasing role in global supply chains. 

Despite the timing of the survey coinciding with the announcement of US tariffs, many respondents had not fully assessed their potential impact. Nevertheless, the results underscore Vietnam's enduring appeal in an evolving global landscape. 

The survey revealed that German companies worldwide are adjusting to new tariffs and global dynamics, with their counterparts in Vietnam adopting a balanced outlook amidst changing circumstances. Despite ongoing global disruptions, 54% of German companies in Vietnam expect an improvement in their business situation within the next year. 

A significant 80% rated their current business situation as either "good" or "satisfactory," highlighting a relatively stable operating environment.

Confidence is also seen in forward-looking decisions, with 38% of companies planning to increase their investments, while 43% expect their workforce to grow in 2025.

During the first months of the year, German businesses in Vietnam continued to demonstrate strong engagement, strategic adaptability, and a long-term commitment to Vietnam’s dynamic economy. 

The GBA reported maintaining strong connections with the international business community and local authorities in Vietnam through significant events. Various business meetings were organised in both Germany and Vietnam, reaffirming the long-term strategic presence of German businesses and the GBA's commitment to sustainable development in Vietnam.

The confidence of German companies in Vietnam's long-term prospects is attributed to factors such as a growing middle class, expanding domestic market, a stable political environment, improving macroeconomic indicators, ongoing efforts to enhance digital infrastructure, and green transition policies.

Amidst the economic landscape in Germany and the EU, characterised by high energy costs, geopolitical uncertainties, and moderate GDP growth, German businesses are reevaluating supply chains and diversifying away from regions with risks.

Vietnam is increasingly seen as a secure and strategic choice for production, sourcing, and regional operations, particularly amidst new trade measures such as US tariff increases and shifts in EU policies. 

Despite the positive outlook, German businesses encounter persistent obstacles affecting their operations and competitiveness, including regulatory inconsistencies, administrative inefficiencies, changes in US tariff policies on goods from Vietnam, human resource constraints, and local content and licensing requirements.

German-Vietnamese economic relations remain strong. 

In 2024, bilateral trade exceeded EUR18.8 billion (US$20.4 billion), and German companies continue to invest in high-potential sectors like renewable energy, automation, and vocational training.

Last year, several German companies also actively expanded their presence in Vietnam. 

Ziehl-Abegg opened a US$20 million factory in Dong Nai for ventilation and drive technology, while Kärcher launched a US$19.4 million plant in Quang Nam for cleaning equipment. Lately, the Südwolle Group officially opened its new dyeing plant in Ninh Thuan, valued at US$21 million.

German businesses show resilience in Vietnamese market amid challenges

VOV.VN - With the global economy continuing to experience sluggish yet stable growth, characterised by ongoing challenges and uncertainties, German businesses remain optimistic regarding the Vietnamese market, according to the latest AHK World Business Outlook Fall 2024 survey.