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A new era for Viet-German prosperity

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1 month ago

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This year, Germany and Vietnam will celebrate 50 years of diplomatic relations – a testament to a partnership that has grown from early trade ties into a deep and dynamic collaboration.

To mark this milestone, a series of events will showcase the strong bonds between both nations in trade, education, and sustainability. Key activities include two gala concerts, the German Festival in Hanoi and Ho Chi Minh City, the Career Truck showcasing opportunities for Vietnamese talent in Germany, and a Climate Talks panel on the future of the Mekong Delta.

A new era for Viet-German prosperity
Peter Kompalla, chief representative for Vietnam, Cambodia, Myanmar, and Laos Delegation of German Industry and Commerce

These initiatives reflect not only cultural and educational ties but also the economic potential for further investment and collaboration.

Today, Germany stands as Vietnam’s largest European trade partner, while Vietnam has become a thriving hub for German businesses in ASEAN. Trade remains a cornerstone of German-Vietnamese economic relations: according to preliminary 2024 data from Destatis, trade between the two countries grew by 9.6 per cent, reaching €18.8 billion ($20.4 billion).

German exports to Vietnam increased by 5.6 per cent (€3.7 billion or $4 billion), while imports surged by 10.7 per cent (€15.1 billion or $16.4 billion). This underscores Vietnam’s role as a key supplier and manufacturing hub for German firms.

Vietnam has become a key hub in global supply chains, with particularly interesting developments in manufacturing, renewable energy, and digital services. German businesses benefit from its strategic ASEAN location, free trade agreements, and highly motivated workforce. With tax incentives, improved infrastructure, and streamlined regulations, Vietnam continues to attract more foreign investment, solidifying its role as a prime destination for German enterprises.

As German companies further optimise and diversify their supply chains, Vietnam stands out as a business partner. Its strong economic growth, expanding industries, and commitment to sustainability make it increasingly attractive.

Forecasts for 2025 are reinforcing its position as one of Asia’s fastest-growing economies. A young, skilled workforce further enhances Vietnam’s appeal, offering businesses a dynamic and cost-effective labour market.

Vietnam’s digital transformation is driving investment, with its digital economy set to contribute 25 per cent of GDP soon. Government efforts in digital infrastructure, e-commerce, and cashless payments support this growth, with e-commerce projected to hit $63 billion by 2030.

High-tech manufacturing, including semiconductors and automotive production, is expanding alongside major infrastructure projects like metro systems, the North-South high-speed railway, and Long Thanh International Airport.

Meanwhile, Vietnam’s sustainability drive, from solar to offshore wind, aligns with German environmental, social, and governance priorities. With strong economic fundamentals and a thriving digital sector, Vietnam remains a prime destination for German investors.

Germany is also driving digitalisation and Industry 4.0 in Vietnam, with Bosch Rexroth, Beckhoff, SEW Eurodrive, Trumpf, and Würth leading in automation and the Internet of Things. Companies like Baumer and Fibro see Vietnam’s potential in precision engineering, supporting its transformation into a high-tech manufacturing hub.

This knowledge exchange will be highlighted at our symposium in May on Vietnamese factory automation and German efforts, where industry leaders will discuss the future of smart production.

Sustainability remains a key pillar of German investment, with firms embracing initiatives in renewable energy, waste management, and sustainable agriculture. PNE AG’s Hon Trau nearshore wind power project in the south-central province of Binh Dinh exemplifies Germany’s commitment to Vietnam’s green transition, supporting the country’s Power Development Plan VIII.

Equally important is workforce development, where German enterprises actively collaborate with Vietnamese vocational institutions to bridge skill gaps. The Career Truck’s journey across Vietnam, complemented by the flagship Career Day events in Hanoi and Ho Chi Minh City, will serve as a dynamic platform to showcase education and employment pathways. This initiative underscores Germany’s continued commitment to enhancing Vietnam’s skilled labour force and fostering long-term career opportunities.

A new era for Viet-German prosperity

Ho Chi Minh City and Hanoi serve as economic hubs, attracting German investments in finance, IT, and consulting. Meanwhile, the southern provinces of Binh Duong and Dong Nai have become manufacturing strongholds, hosting major German companies in the automotive, chemicals, and also electronics industries.

Beyond these traditional sectors, areas such as logistics, pharmaceuticals, and IT services are experiencing rapid growth, further drawing German investment into Vietnam’s evolving market.

As the official representative of the German industry in Vietnam, we continue to support businesses in market entry, expansion, and networking through trade fairs and business delegations. The next 50 years promise deeper collaboration, enhanced sustainability efforts, and continued economic success for both nations.

By leveraging this momentum, German and Vietnamese businesses can drive mutual prosperity and innovation well into the future.

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Billionaire Trần Bá Dương’s VND 2,000 Billion, 200-Hectare Industrial Park in Thái Bình Could Begin Operations This Year

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3 weeks ago

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March 31, 2025

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The Thaco – Thái Bình Industrial Park, covering more than 194 hectares with an investment of over VND 2,100 billion, is expected to become operational within this year, according to the development plan.

Recently, provincial leaders of Thái Bình conducted an on-site inspection of land clearance efforts and infrastructure construction progress at the Thaco – Thái Bình Industrial Park located in Quỳnh Phụ District.

To date, Quỳnh Phụ District has completed compensation and land clearance for nearly 192 hectares of agricultural land, involving the land recovery of 1,067 households to hand over to the investor for project implementation.

Currently, the district is focusing on clearing the remaining land, involving 94 households in Lương Cầu Hamlet, An Cầu Commune. At the same time, it is coordinating with the electricity sector to relocate a 220kV high-voltage power line.

On the investor’s side, groundwork construction is underway, including roadbeds, internal roads, stormwater and wastewater drainage systems, and communication infrastructure within the industrial park.

The Thaco – Thái Bình Industrial Park is a specialized high-tech agricultural industrial park proposed by THACO Group (chaired by billionaire Trần Bá Dương) since 2017, originally planned to cover 250 hectares. By July 2017, the provincial authorities agreed to incorporate the project into Thái Bình’s industrial development master plan.

In August 2020, THACO officially broke ground on the industrial park’s infrastructure. A year later, in August 2021, the project’s investment certificate was revised, confirming a total investment of over VND 2,100 billion and a land area of more than 194 hectares. The project is being developed across An Thái, An Ninh, and An Cầu communes in Quỳnh Phụ District.

According to the roadmap, the investor is determined to complete and officially launch the project in 2025.

The Thaco – Thái Bình Industrial Park is designed as a dedicated high-tech agricultural zone, featuring various functional subdivisions including an administration center, agro-food processing zone, high-tech agricultural training center, experimental farms, agricultural materials production area, and a cargo transport port.

This project is considered one of the key developments in Thái Bình Province, playing a crucial role in the region’s socio-economic growth strategy.

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Carbon labels: a gateway to high-value global markets

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4 weeks ago

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March 27, 2025

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In an era where sustainability is not just a choice but a requirement, carbon labelling is emerging as a crucial factor for exporters.

Carbon labels: a gateway to high-value global markets
Vu Trung Kien, director Climate Change Resilience Centre

Countries like the US and the European Union are implementing stringent carbon regulations, such as the EU’s Carbon Border Adjustment Mechanism and increasing scrutiny on supply chain emissions.

Vietnamese businesses that fail to adopt carbon labelling risk losing access to lucrative markets. However, those that proactively integrate carbon footprint transparency into their products can gain a competitive advantage, enhance brand reputation, and secure long-term profitability.

Across the world, forward-thinking countries have embraced carbon labelling as a strategic tool for trade success. These efforts have not only helped businesses comply with regulations but have also opened doors to new investment and consumer markets.

Japan has implemented a government-backed carbon labelling programme that allows companies to display detailed carbon footprint information on their products. This has strengthened consumer trust and made Japanese goods more attractive in environmentally conscious markets such as the EU and North America.

The South Korean government incentivises businesses to adopt carbon labelling through tax benefits and green export support schemes. Companies that participate gain access to new trading partners, particularly in Europe, where sustainable supply chains are becoming the norm. Thailand, a key competitor to Vietnam, has integrated carbon labelling across industries such as food processing, textiles, and electronics. Thai exporters, particularly in agriculture, now benefit from preferential treatment in European supermarkets and trade agreements.

These case studies highlight an important lesson: carbon labelling is not just about compliance – it is a business strategy that enhances market access, builds consumer confidence, and future-proofs exports.

For businesses in Vietnam, waiting until carbon labelling becomes a legal requirement would be a mistake. Many international corporations have already set ambitious sustainability targets, requiring suppliers to provide verifiable carbon footprint data. Voluntary carbon labelling can position Vietnamese enterprises as reliable, future-ready partners.

It works by companies conducting a life cycle assessment to measure emissions from production to disposal. Products are labelled with a carbon footprint score, helping consumers and businesses make informed choices. Labels are often verified by third-party certifiers to ensure credibility and compliance with global standards.

The benefits include a boost for green supply chains. Companies like Nestlé and Unilever prioritise suppliers that provide carbon footprint transparency. Vietnamese food and beverage exporters can gain an edge by aligning with such demands.

Businesses with carbon-reduction strategies attract funding from international banks and investors that focus on increasing environmental, social, and governance (ESG) investment.

It also leads to improved consumer trust and higher sales. Studies indicate that climate-conscious consumers prefer labelled products. In markets like the EU, organic rice, seafood, and textiles from carbon-labelled brands command higher prices.

For Vietnamese companies looking to integrate carbon labelling into their strategy, a step-by-step approach can make the transition smooth and effective.

Pilot carbon labelling programmes in key sectors are critical, with a focus on industries where carbon labelling is already gaining momentum, such as textiles, seafood, agriculture, and furniture.

The process must start with one or two high-export products and conduct a carbon footprint analysis to understand emissions sources. Industry associations must also work with international partners to ensure the label aligns with EU and US standards.

Collaboration with certification bodies is also key, and partnering with recognised organisations such as the Carbon Trust (UK), TÜV Rheinland (Germany), or SGS (Switzerland) for certification is advised, as is engaging with Vietnamese regulatory bodies to advocate for government incentives similar to South Korea’s model.

Another vital part of the process is to leverage green financing and government incentives to access ESG-linked loans and grants that support supply chain improvements. Alongside this, there needs to be a move to propose carbon labelling incentive programmes through the Vietnam Chamber of Commerce and Industry or the Ministry of Industry and Trade.

The future of Vietnam’s export competitiveness is green. The world is moving towards sustainable trade, and carbon-labelling is no longer optional for businesses that want to thrive in international markets. By learning from successful global initiatives, Vietnamese companies can turn carbon transparency into an economic advantage rather than a compliance burden.

The time to act is now. Companies that lead in carbon labelling will not only future-proof their businesses but also shape Vietnam’s reputation as a responsible trade leader.

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Industrial parks in Binh Duong increase FDI attraction by 232%

Published

4 weeks ago

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March 27, 2025

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In the first quarter of 2025, an additional 588 million USD in foreign direct investment (FDI) poured into Binh Duong Province’s industrial parks, marking a 232% increase compared to the same period in 2024 and reaching 53.43% of the 2025 annual plan, as reported by the provincial Management Board of Industrial Parks on March 26.

Of the 588 million in FDI USD invested in industrial parks during the first quarter, there were 25 new investment projects with a total registered capital of more than 60.2 million USD and 26 projects with additional capital adjustments, contributing nearly 528 million USD in increased capital.

With this positive investment attraction in the first quarter, industrial parks in Binh Duong have so far attracted 3,252 active projects, including 2,561 FDI projects with total registered capital of 31.57 billion USD and 691 domestic investment projects with total registered capital of 93.664 trillion VND.

According to the Management Board of Industrial Parks in Binh Duong, 10 new projects have become operational in the first quarter. Currently, the province’s industrial parks have 2,706 active business and production projects, including 507 domestic projects and 2,199 FDI projects.

With effective operations, the estimated business and production targets for the first quarter of 2025 in the province’s industrial parks exceeded 11 billion USD, increasing by 7.72% compared to the same period last year and reaching 31.49% of the annual plan. Export turnover surpassed 6.34 billion USD, up 9.22% year on year, achieving 25.36% of the annual plan. Taxes and budget contributions reached nearly 175.4 million USD, increasing by 10.23% year on year and fulfilling 25% of the annual target.

Binh Duong currently has 29 industrial parks with a total planned area of 12,746 hectares. Of which, 28 industrial parks are already operational, covering a total of 12,046 hectares.

According to the Binh Duong Provincial Master Plan for 2021-2030, with a vision to 2050, which was approved by the prime minister, the province is planned to develop 48 to 50 industrial parks with a total planned area of 25,000 hectares.

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