Fostering Vietnam-German bilateral cooperation

In an exclusive interview granted to our reporter, Mr. Alexander Ziehe, Chairman of the German Business Association, shared some insights on this content. 

Vietnamese-German business cooperation has been strongly promoted in many sectors such as high tech, smart manufacturing, green economy, renewable energy, digital transformation, vocational training, agriculture, and logistics. How do you evaluate these cooperation programs?

Our bilateral cooperation has been a major success driver in Vietnam, largely thanks to German expertise that has significantly contributed to the development of these sectors. Over recent years, the German Business Association (GBA) has established multiple collaborative platforms, from workshops and company tours to conferences and high-level meetings to deepen these ties. The strong and growing participation of businesses from both countries clearly demonstrates the strategic importance of these sectors for investors.

In addition to our role as a business community, our close partner AHK has successfully launched vocational training programs in cooperation with German member companies. The Vietnamese-German University operates a dedicated transportation research center, and recently, the Kühne Logistics Institute introduced a master’s program in Ho Chi Minh City, with active involvement from German companies and Vietnamese partners. These initiatives clearly illustrate how well-designed cooperation can create long-lasting and impactful results.

Besides the aforementioned sectors, which ones are German businesses interested in? In your opinion, what solutions are needed to promote this cooperation in the future?

German businesses are traditionally strongly invested in Vietnam in industrial goods and automotive. More recently, the rapid expansion of Vietnam’s domestic consumer market has attracted major German brands in sectors such as F&B, home appliances, furniture, and healthcare solutions.

With Vietnam advancing its international financial center initiative, German banks, investment firms, and insurance groups are actively studying opportunities to participate in this emerging field. Furthermore, tourism remains a flagship sector in Vietnam, and German-linked tourism groups continue to expand their footprint here.

These industries hold strategic importance for Vietnam. Therefore, we are intensifying cooperation by establishing dedicated industry platforms and programs focused on industrial goods, consumer goods, financial services, and tourism, ensuring that German expertise can support Vietnam’s development in these high-potential sectors.

Technology transfer, training high-skilled human resources, and connecting businesses with the government and research institutes are the three pillars for Vietnam to enhance its production capacity in the coming period. What support will Germany provide to Vietnam in promoting these three pillars, sir?

Our German investors have actively supported both training and technology transfer for many years. They provide practical solutions through internal training programs, partnerships with training institutions, and collaboration with universities. German FDI is inherently linked to technology transfer as companies bring advanced production know-how to their Vietnamese operations and support their local clients with world-class solutions.

Over the past year, GBA has significantly intensified engagement with provincial leaders, VCCI, and academic institutions to encourage joint initiatives and address the specific needs of German enterprises, further strengthening long-term commitment to Vietnam. Additionally, Germany has strong representation through AHK and GIZ, which operate multiple bilateral development initiatives—including sustainability programs, international delegations, and structured support for trade fair participation—directly connecting Vietnam with Germany.

What obstacles and challenges are German businesses in Vietnam currently facing? Do you have any recommendations to contribute to improving Vietnam's investment and business environment in order to promote production and business activities of FDI enterprises in general and German firms in Vietnam in particular?

Vietnam is currently undergoing one of its most significant reform phases since Đổi Mới. As GBA, we strongly welcome efforts to streamline administrative procedures, accelerate digitalization, and further open markets to foreign investors. However, German companies still face several recurring challenges, especially related to licensing procedures, work permits for foreign experts, and abrupt regulatory changes. Infrastructure bottlenecks and customs procedures continue to hinder smooth operations.

Some key sectors such as retail, utilities, and infrastructure remain highly regulated, resulting in setbacks for German investment projects. Therefore, we recommend systematic monitoring of pain points and integrating them into the reform agenda. Priority areas include full digitalization of customs, acceleration of pending infrastructure developments, and simplified licensing requirements for companies and foreign professionals. Policy changes should be communicated earlier and accompanied by a reasonable transition period to reduce operational burdens.

We also aim to encourage German participation in Vietnam’s strategic infrastructure projects, such as the high-speed railway, to bring world-leading technology into Vietnam’s future development. For this to materialize, German investors require transparency, predictable regulatory frameworks, and reliable public-private partnerships. We firmly believe that by applying German technology and solutions, Vietnam will progress sustainably toward becoming a high-tech, high-income economy.

Thank you so much!