German businesses boost investment in Vietnam

On December 4, the German Business Association (GBA) in Vietnam held its annual conference. Accordingly, the organization’s direction and operation methods were aimed at promoting investment and business activities of each German business member in the Vietnamese market. The event was also honored to welcome the Ambassador Extraordinary and Plenipotentiary of Germany to Vietnam, Ms. Helga Margarete Barth, Chairman of EuroCham, Mr. Bruno, and hundreds of major German brands in the northern region such as Kobler, Ziehl-Abegg, Kärcher, Mercedes-Benz, Luther, Durr, Bosch, etc.

The year 2024 marks a remarkable growth in strategic investment in Vietnam – Germany economic relations.

2024 will see a sharp increase in German investment in Vietnam. With more than 530 companies operating in Vietnam, German businesses continue to see Vietnam as an important growth market, with a total of 3.6 billion USD in investment capital poured in. These investments are allocated to key sectors, from high-tech manufacturing, logistics, to renewable energy.

The continuously increasing investment flow from Germany shows that Vietnam is affirming its attractiveness as a strategic destination, thanks to its favorable geographical location, increasingly high-quality workforce and government policies to improve infrastructure.

Ambassador Extraordinary and Plenipotentiary of Germany Helga Margarete Barth took a photo with German businesses in Vietnam (Photo: GBA)

These enterprises include Ziehl-Abegg, which opened a $20 million factory in Dong Nai. The world’s leading supplier of ventilation technology chose Vietnam to locate its factory given its important role in the global supply chain.

Or Pearl Polyurethane Systems has also opened a new factory in Long Thanh, contributing to the 1.2 billion USD FDI figure for Dong Nai, in the first 9 months of 2024 alone.

Investments are not only focused on traditional industries but also expanding into green energy and sustainable manufacturing, in line with Germany’s advanced technological strengths and Vietnam’s long-term commitment to environmental protection.

In the construction and interior materials manufacturing industry, the German Kobler Group has invested heavily in the Vietnamese market over the past two years. Specifically, in 2022, the company invested 25 million Euros in the Kobler quartz flooring factory in Da Nang on an area of 21,000m2, operating at a capacity of 20,000m2/day. Kobler announced that it will continue to invest an additional 3 million Euros in research and launch of superior products early next year. Kobler expects to supply about 3.5 million m2 of quartz flooring to customers nationwide by 2025. The company said that Vietnam is a key and potential market for the Kobler Group, so the factory is equipped with a modern production line transferred from Germany according to the company’s standards in Germany to ensure consistent quality and the highest quality principles.

The most modern Kobler quartz floor factory (Photo: Kobler)

For sustainable development, the company also focuses on environmental protection activities and greenhouse gas emissions. The materials used are aimed at minimizing CO2 emissions, “low-carbon dioxide flooring” and substances containing VOCs and formaldehyde that affect the environment and human health.

GBA President takes a photo with German business representatives in Vietnam (Photo: GBA)

Summarizing the association’s achievements, Mr. Alexander Ziehe, Chairman of GBA, shared, “In 2025, we will continue to be your voice and platform in Vietnam, promoting growth opportunities. At the same time, we will participate in the celebration of the 50th anniversary of the establishment of diplomatic relations between Germany and Vietnam, as well as mark the 30th anniversary of GBA with memorable events. Let’s aim for excellence and success in 2025!”

Mr. Vu Khanh Toan – senior strategic advisor of Kobler (Photo: GBA)

On the sidelines of the Association’s event, Mr. Vu Khanh Toan, senior strategic advisor of Kobler Germany in Vietnam, shared: “The relationship between Germany and Vietnam clearly has a deep connection, built on the foundation of trust, common goals and mutual respect. Kobler, with more than 2 years of operation in the Vietnamese market, has gradually affirmed its position and has been fortunate to be warmly welcomed by the market. We will continue to make efforts to contribute to the development of the host country. Our commitment to green materials, digital transformation and local human resource development, actively participating in the ESG model, 5S factory to create a transparent and clean working environment, contributes to the common development of the agreement between the two countries, thereby supporting both countries to achieve their economic goals.”

Anh Duong – Cafef.vn