The German Business Association’s board of directors at its annual general meeting in 2024. – Photo Courtesy GBA
German investment in Việt Nam is expected to keep growing in 2024, the German Business Association (GBA) said.
Alexander Ziehe, the new chairman of the GBA, said: "Traditionally, German investments were mainly directed to Singapore, Thailand and Malaysia. These countries host an established cluster of German industries, such as the automotive sector in Thailand or research and development hubs in Singapore.
“The trend is changing, and Việt Nam is now considered as an investment location of increasing attractiveness.
“German investors favour Việt Nam to supplement their China operations for its lower costs, alternative markets, and convenient geographic and supply route proximity to China.
“Việt Nam itself also offers a rising middle class and opportunities to establish German brands for Vietnamese consumers with local distribution and supply chains.”
The GBA said it has recently received commitments for new projects from Fuchs Petrolub for lubricants production, Schütz for industrial packaging in Bà Rịa – Vũng Tàu Province, Kärcher for machinery manufacturing in Quảng Nam Province, Tenowo for fabric production in Hải Phòng City, and Ziehl-Abegg for control technologies and ventilation systems in Đồng Nai Province.
The GBA recently launched its 2024 action plan to strengthen economic relations between Việt Nam and Germany, focusing on enhancing interactions, expanding its presence in the northern region and driving strategic development initiatives.
The association is enhancing economic and trade links between Germany and Việt Nam by promoting the interests of GBA members and fostering close collaboration with relevant stakeholders.
They will also pursue these objectives through specific strategies, including new operational initiatives.
A highlight is the expansion of its presence in the northern region and the pursuit of strategic development opportunities.
These demonstrate GBA's proactive approach to meeting the evolving needs and demands of its members while maximising the value it provides to the German business community in Việt Nam and the Vietnamese economy at large.
Its specific activities and plans are all geared towards business networking and promotion of investment in Việt Nam.
The most anticipated event is the GBA Oktoberfest, which will take place in the three big cities of Hà Nội, Đà Nẵng and HCM City in September and October this year.
Besides, in 2024, for the first time, the GBA will give away the German Business Awards in Việt Nam.
In close co-operation with the Delegation of the German Industry and Commerce in Việt Nam (AHK Vietnam) and the European Chamber of Commerce in Việt Nam (EuroCham Vietnam), it will organise special events to expand investment and business opportunities for its members.
They include a business trip to Cambodia in May and the German Pavilion showcasing technology and "green" solutions at EuroCham’s Green Economy Forum & Exhibition (GEFE) in October in HCM City.
In the first quarter of this year the GBA's commitment to fostering strong German-Vietnam ties was demonstrated through a diverse schedule of events and activities.
They included a roundtable conference with visiting German President Frank-Walter Steinmeier in HCM City, which was a notable highlight.
A high-level delegation that included the German Minister of Labour and Social Affairs participated in constructive exchanges with the German business community in Việt Nam, laying the groundwork for future cooperation and partnerships.
The GBA business meeting held in March 2024, focusing on the economic outlook of ViệtNam 2024 and the role of ASEAN, set a record with over 100 business executives participating.
The GBA also actively collaborated with Vietnamese government agencies to address members' concerns and support policy reforms to promote business development. – VNS