Vietnam-Germany: Deeper and More Diverse Relationship

2:44:04 PM | 1/17/2025

In recent years, German businesses have increasingly recognized Vietnam as an important destination, particularly in manufacturing, technology and services. The combination of Germany’s technological expertise and Vietnam’s dynamic economy creates a powerful synergy that benefits both our countries. As the two countries celebrate the 50th anniversary of diplomatic relations in 2025, their partnership not only reflects past successes but also lays the foundation for a prosperous future. Vietnam Business Forum interviewed Ms. Helga Margarete Barth, German Ambassador to Vietnam, on this topic.

After 50 years of Vietnam-Germany relations, the partnership has deepened across all sectors. What are the key achievements in economic, trade and investment ties between the two countries?

This year, we are going to celebrate the 50th anniversary of diplomatic relations between Germany and Vietnam. The anniversary is a welcome occasion to showcase the depth and diversity of our relationship, especially in the economic, trade and investment fields. The combination of Germany’s technological expertise and Vietnam’s dynamic economy creates a powerful synergy that benefits both our countries.

Over the past five decades, trade between Vietnam and Germany has seen remarkable growth. Germany is Vietnam’s largest trading partner in Europe and one of the top 10 global trading partners. In recent years, the total trade value between the two countries exceeds US$15 billion annually – with more positive developments ahead.

Germany is one of the top European investors in Vietnam, with major investments in areas such as manufacturing, renewable energy and high-tech industries. Notable German companies such as Bosch, Messer Industrial Gases and BASF have established significant operations in Vietnam. These and other German companies have been transferring advanced industrial expertise to Vietnam.


Prime Minister Pham Minh Chinh meets with German President Frank-Walter Steinmeier in Hanoi, January 2024

Could you tell us the prospects, advantages, challenges and solutions for economic, trade, investment and education cooperation between the two countries?

With the EU-Vietnam Free Trade Agreement (EVFTA) in place, trade between our two countries is expected to continue growing. As Vietnam continues its development as a manufacturing hub, especially in electronics and renewable energy, Germany’s technological expertise and investment will be crucial.

If the legal and commercial conditions are conducive, German companies are prepared to provide their expertise and significant investments in renewable energy, energy efficiency and sustainable industrial practices. They are already involved in projects related to wind and solar energy in Vietnam, contributing to both environmental goals and economic opportunities. German companies are also likely to continue investing in Vietnam’s growing consumer market and its expanding digital economy.

At the same time, complex bureaucratic procedures and inconsistent enforcement of laws can pose challenges for German businesses in Vietnam. These barriers may slow the entry of new businesses or complicate existing operations. I am confident that the infrastructure is gradually being overhauled, which is necessary to overcome the existing challenges in this regard and to meet the standards of Vietnam’s regional competitors. I would also welcome a more vigorous enforcement of intellectual property rights to ensure fair competition.


Ambassador Helga Margarete Barth attends the opening ceremony of PNE Group's Representative Office in Quy Nhon city, Binh Dinh province

What are the cooperation plans between Germany and Vietnam to develop a green economy and achieve Net Zero by 2050?

The whole portfolio of Germany’s development cooperation has one goal: To promote Vietnam’s transition to a sustainable future. Germany’s support takes on many shapes and is visible in fields such as energy transition, vocational training and forestry. We are committed to sharing our experiences from our own “Energiewende” in building a sustainable energy sector, including best practices in regulatory frameworks, grid integration, and energy efficiency.

Among the most vulnerable countries to climate change, Vietnam is on the way to become a regional leader in transforming the energy sector and shifting from fossil fuels to sustainable energy sources like solar and wind power. Vietnam has set the ambitious target of achieving carbon neutrality by 2050 and is committed to a comprehensive Just Energy Transition Partnership (JETP).

Within this context, German companies are at the forefront of driving this transition, serving as the keystone of innovation and the driving force behind the development of clean energy solutions. Firms like Bosch, Dräger, Enertrag, PNE, Siemens, ThyssenKrupp and Viessmann are leading operators and manufacturers in the renewable energy and energy-efficiency solutions, essential for the efficient management of renewable energy resources and reduced energy consumption.

Thank you very much!

By Duy Anh, Vietnam Business Forum