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A new era for Viet-German prosperity

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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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Ministry of Finance and World Bank discuss new ODA-funded projects

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Minister of Finance Nguyen Van Thang met with Mariam Sherman, World Bank division director for Vietnam, Cambodia and Laos in Hanoi on March 21 to discuss upcoming projects using official development assistance (ODA).

Ministry of Finance and World Bank discuss new ODA-funded projects

At the meeting, Minister Thang explained that the amended Law on Bidding had been in effect since January 15, decentralising the approval process to cut down the time needed for the disbursement of loans.

Based on the decree guiding the implementation of the amended law issued in February, the Ministry of Finance (MoF) submitted a decision on the bidding of Binh Duong wastewater treatment scheme and the southern waterway corridor development to the government, which issued a resolution approving the loans on March 19. The resolutions have since been submitted to the president for approval.

“The MoF will conduct meetings with localities to remove obstacles for ODA projects, including those of the World Bank. This will help accelerate progress on projects set to be disbursed this year and beyond,” said the minister.

Mariam Sherman thanked Thang for these solutions and proposed some initiatives to remove obstacles for projects that need to be implemented soon, such as the renewable energy enhanced transmission grid, and projects that are currently being implemented and negotiated.

“The aim of Vietnam and the World Bank is to ensure that the schedule and objectives of this capital mobilisation drive are met,” said Sherman.

According to Sherman, the combined value of the World Bank’s list of projects is about $11.2 billion, targeting key areas such as growth innovation, economic restructuring, energy conversion, and climate change response.

“To achieve the high growth rate set out by the government and National Assembly, foreign loans, including those from the World Bank, will play a vital role,” said Minister Thang.

The minister shared the government’s viewpoint that between 2026 and 2030, ODA is expected to pour into key projects such as expressways, railways, high-speed railways, energy infrastructure, climate change resilience, and digital infrastructure.

“With the government’s objective of high economic growth over the next few years, cooperation between Vietnam and the World Bank will be extensive,” he said.

Minister Thang expressed his appreciation for Sherman’s contributions to accelerating the progress of ODA-funded ventures. He also requested the World Bank to consider further simplifying and harmonising procedures, as well as consider finding ways to reduce interest rates for high-priority projects.

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Cross-border drug trafficking ring busted in Quang Binh province

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More than 25 kilogrammes of various narcotics has been seized in the lastest drug crime crackdown in Quang Binh province.

Cross-border drug trafficking ring busted in Quang Binh province
More than 25 kilogrammes of various narcotics are seized in the crackdown. (Photo courtesy of the police)

Quang Binh – Police of the central province of Quang Binh said on March 20 that the force, in coordination with authorities of Laos’ Khammouane province, has successfully dismantled a major cross-border drug trafficking network, seizing more than 25 kilogrammes of various narcotics.

The crackdown took place on March 12 when Dinh Hong Thuan, born in 1971 and from Quang Binh’s Minh Hoa district, and Nguyen Thanh Phuong, born in 1993 and from the province’s Dong Hoi city, were caught red-handed illegally transporting drugs.

Authorities confisticated some 20 kilogrammes of drugs, including 60,000 amphetamine pills, eight kilogrammes of ketamine, four kilogrammes of crystal methamphetamine, and two kilogrammes of heroin.

Following further investigation, the law enforcement force arrested Pham Le Tuan Anh, born in 1995 and from Dong Hoi city, for drug trafficking. In this additional arrest, around 5 more kilogrammes of narcotics was seized, including over 25,000 amphetamine pills, 1.5 kilogrammes of crystal methamphetamine and ketamine, and 1 kilogramme of heroin.

The local police charged the suspects and is expanding investigation into the case.

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Microsoft continues AI infrastructure deployment in Malaysia

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Microsoft is monitoring developments related to US export restrictions on semiconductor technology, but its operations in Malaysia have not been affected, according to an executive of the US tech giant.

Microsoft continues AI infrastructure deployment in Malaysia
The Microsoft logo in London, the UK (Illustrative photo: Xinhua/VNA)

Kuala Lumpur – US tech giant Microsoft said its artificial intelligence (AI) infrastructure rollout in Malaysia remains on track despite concerns over potential disruptions in the supply of advanced AI chips.

The company is monitoring developments related to US export restrictions on semiconductor technology, but that its operations in Malaysia have not been affected, Microsoft Malaysia managing director Laurence Si told a press conference on March 20.

Microsoft’s investments in Malaysia, including the upcoming cloud region launch, are proceeding as planned. It is committed to deploying AI services and digital infrastructure on schedule, ensuring Malaysia benefits from the latest technological advancements, he added.

Concerns over AI chip supply have grown following Microsoft’s announcement of its in-house Azure Cobalt 100 chip, designed to enhance AI capabilities.

Asked whether Malaysia’s cloud region would use the latest AI chips, Si said Microsoft is assessing market demand.

If there is a market for it, it will be incorporated into the framework and timeline for Malaysia, he said, adding that there is already industry interest in AI-optimised chipsets like Cobalt

In a related news, Prime Minister Anwar Ibrahim has emphasised the importance of developing local talent in blockchain technology to ensure that investments in the sector benefit Malaysians.

The matter was discussed during a courtesy visit on March 20 from representatives of Klickl, a company operating finance and assets within the digital and blockchain ecosystem, he said in a Facebook post.

Anwar noted that Malaysia has significant potential in the field and can leverage blockchain technology across various sectors. Beyond finance and digital assets, he said the technology could also be utilised in government services and the halal industry.

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