In 1995, when the German Business Association (GBA) was founded, Vietnam’s market conditions for foreign direct investment (FDI) were characterized by significant economic reforms following the Đổi Mới (Renovation) reforms initiated in 1986. These reforms transitioned Vietnam from a centrally planned economy to a socialist-oriented market economy, creating a more conducive environment for foreign investment.
The Foreign Investment Law, enacted in 1987, was among Vietnam’s first major reform measures to attract FDI, providing a legal basis for foreign investors. By 1995, disbursements of FDI grew rapidly, with projections reaching $1.4 billion, accounting for almost 7% of GDP.
This influx was expected to play a key role in upgrading the country’s infrastructure and productive capacity. Despite these positive trends, foreign investors faced challenges such as bureaucratic hurdles, lack of transparency, and an underdeveloped infrastructure, which could impede investment activities.
The establishment of the GBA aimed to support German businesses in navigating these market conditions by providing a platform for networking, knowledge exchange, and advocacy, thereby facilitating their entry and operations in Vietnam’s evolving economic landscape.
In 1995, GBA commenced operations as one of the first foreign business associations in Vietnam, aiming to support German enterprises in the region.
By 1998, GBA co-founded the European Chamber of Commerce in Vietnam (EuroCham Vietnam), strengthening ties with other European business communities.
In the early 2000s, GBA organized inaugural flagship events, including the Oktoberfest and Deutschen Treff, fostering cultural and business exchanges.