With advantages such as a young workforce, competitive costs, a growing domestic market, and an open investment environment, an increasing number of companies from Europe’s largest economy are choosing Vietnam as a long-term strategic base.

A September 2025 report by the German Chamber of Commerce Abroad (AHK) in Vietnam noted that German capital began flowing into the country in the early 1990s, soon after Vietnam’s market opening. In 1992, Bültel Group, known for its Camel Active brand, established a factory in Binh Duong, while outdoor equipment maker Tatonka launched its production line in Ho Chi Minh City. Following Vietnam’s accession to the World Trade Organization (WTO) in 2007 and amendments to the Enterprise and Investment Laws in 2015, German investment accelerated sharply. To date, 576 German enterprises have invested in Vietnam with total registered capital of nearly US$3.7 billion, creating at least 50,000 jobs nationwide.

Although Germany is globally recognized for its manufacturing industry, nearly half of its projects in Vietnam are in services such as consulting, logistics, business process outsourcing, and information technology. Seventy-one firms are active in these fields, including Digi-Texx, which employs over 1,500 staff in Ho Chi Minh City, and Bosch, which has 4,000 employees in technology and engineering.

Alongside this trend, German manufacturing facilities in Vietnam continue to expand, with 117 enterprises operating across various sectors.

Bosch runs a drive-belt production plant in southern Dong Nai province and maintains R&D centers in Ho Chi Minh City and Hanoi. Stada–Pymepharco operates a pharmaceutical plant in the south-central province of Phu Yen.

Messer Gases, a long-standing German family business, supplies industrial gases from major facilities in Hai Phong city and Quang Ngai province. In the textile sector, a number of German suppliers and original equipment manufacturers have established a presence, continuing the industry’s traditional ties. The chemicals segment mainly serves domestic clients, while the automotive sector- though still modest-features notable investments from Schaeffler, Bosch, and Dräxlmaier.

Geographically, Ho Chi Minh City is seen as as the gateway for German businesses in Vietnam, accounting for about 75% of sales and service activities. Meanwhile, southern Dong Nai and Tay Ninh provinces host a concentration of factories. In the north, industrial activity is growing along the Hanoi-Hai Phong corridor, home to B.Braun, Messer, and new entrants such as Harting, RRC, and Certoplast. Central Vietnam is also attracting attention thanks to its cost advantages and quality of life, with key projects in Da Nang, Quang Nam, and Gia Lai. Overall, most German factories are located within a 30-40 km radius of Ho Chi Minh City, which has long been a magnet for foreign investment.           

A key factor attracting German investors is Vietnam’s competitive labor costs, coupled with an increasingly open business climate that allows 100% foreign ownership in most sectors.

German firms typically take a long-term approach, bringing not only capital but also technology, management expertise, and the dual vocational training model that helps improve the quality of Vietnam’s workforce. They also prioritize sustainability, adhering to international environmental standards and strict legal compliance. Many cooperate with local suppliers, while promoting technology transfer and management know-how.

With the EU-Vietnam Free Trade Agreement (EVFTA) in effect, Vietnam’s green growth strategy gaining momentum, and global supply chains continuing to shift, investment cooperation between Germany and Vietnam is expected to grow strongly in the coming years. Backed by technological strength and long-term commitment, German enterprises are well-positioned to remain trusted partners in Vietnam’s socio-economic development journey.

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